Compare Bridging Loans - £50,000 to £25 Million
For those needing quick and short-term access to funds, be this to complete on a property or business venture, a bridging loan could be just what you need.Apply Now
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Bridging loans can be useful for those with tight deadlines in which to complete on a property. Often in these circumstances, it may be a struggle to acquire the funds in time to meet the property’s completion deadline. The quick access to funds this type of finance offers can help in these situations.
However, completing on a property isn’t the only way these loans can be used, you can also use them for various other business purposes too.
Bridging loans also come with a list of eligibility criteria borrowers must meet. It’s therefore important for prospective borrowers to understand and ensure they meet a lender’s standards before applying.
- Can borrow between £50,000 – £25 million.
- Borrow over 3 – 24 months.
- Funds can come in 10 – 14 days.
- Can be used for commercial, residential, new builds and more.
- Max 70% LTV (regulated), and 75% LTV (non-reglated).
- Is a short-term type of finance.
- Used by those on a short deadline.
- Considers all credit histories.
What Is a Bridging Loan?
A bridging loan is a type of loan used to fund a project (e.g. purchase of a property) before you’re able to access other means of funds for it (e.g. through selling an existing property). As their name suggests, these types of loans are there to “bridge the gap” in one’s finance.
It is for this reason that bridging loans are a short-term type of finance, that can typically last between anything from 3 to 24 months. The precise terms of the bridging loan will depend on the type you go for as well as the details of your situation.
These types of loans can offer quick access to the funds you need, however the loan will require collateral in the event that repayments can’t be made. This collateral can be a commercial or residential property, including offices, garages, a home or similar.
It’s also important to note that a bridging loan can come with higher interest rates than the more traditional term loans.
When Would You Use a Bridging Loan?
Bridging loans are typically used to purchase and renovate a property. This type of finance is therefore referred to as a form of property development finance.
Bridging loans can be used for both commercial and residential properties, and can vary in what they’re used for – for example, from adding a room to a property or ground-up developments.
Bridging finance can also be used for other types of short term commercial reasons. One thing all successful applicants must have however, is a clear exit plan from the loan.
How to Apply
Applying for a bridging loan is made easy with our trusted partner. Simply provide them with details of the amount you wish to borrow, how long you’d like to borrow this for, the location, your name and contact details. After submitting this information, a team of advisors will get back to you to discuss your options.
Eligibility Criteria: Is a Bridging Loan Right for Me?
If needing quick access to funds in order to meet, say, a property completion deadline, a bridging loan may be the best option to go with. However, there are a few other factors to consider to help ensure this finance is appropriate for your borrowing needs.
The eligibility criteria for a bridging loan includes:
- Being over the age of 18.
- Having the property located in the UK.
- Ensuring the property is in an acceptable condition.
- Having solid, established plans for the property once purchased (e.g. refurbish, buy-to-let).
- Having plans to repay the loan within the established timeframe.
- Having a good credit history (not essential).
While having a good credit history can help borrowers applying for a loan, bridging finance lenders can consider all different types of credit histories. Therefore, you shouldn’t be discouraged if your credit history is not ideal.