Bridging Purchase
What is a Bridging Loan?
A bridging loan is a short-term finance solution designed to help individuals and businesses purchase residential or commercial properties quickly. It provides immediate funding, allowing buyers to secure a property while arranging long-term finance or waiting for a sale to complete.
Bridging loans are commonly used for:
- Buying property at auction
- Securing a property before selling an existing one
- Purchasing unmortgageable properties for refurbishment and development
- Completing time-sensitive property transactions
Key Benefits of a Bridging Loan
- Fast Access to Funds – Loans can be arranged in days and weeks, enabling quick property purchases.
- No Monthly Repayments (optional) – Interest can be rolled up and repaid at the end of the loan term, improving cash flow.
- Short-Term Flexibility – Ideal for temporary funding needs before securing long-term finance.
- Multiple Exit Strategies – Repayment can be structured through refinancing, property sales, or other funding routes.
- No Early Repayment Penalties – Most lenders allow early repayment without extra costs.
- Covers a Range of Properties – Available for residential, commercial, and mixed-use properties.
Who is Eligible?
Bridging loans are available to:
- Property investors and landlords
- Businesses purchasing commercial premises
- Developers purchasing refurbishment projects
How much can you borrow?
- Loan-to-Value (LTV): Up to 80% net (higher with additional security). However, we also have specific products for below market value transactions which can release up to 100% of the purchase price.
- Loan Amounts: Typically from £50,000 to £50,000,000+.
- Term Length: Usually 3 to 24 months.
- Interest Rates: Competitive rates based on property type and risk profile.
