Bridge Financing UK 

The cost of a UK bridging loan can vary based on several factors, including the loan amount, property value, and your financial position. Interest rates typically start at around 1% per month, but this can fluctuate depending on the specifics of your loan.

Other costs may include:

• Valuation Fees: These cover the cost of assessing the value of your property
• Arrangement Fees: Lenders typically charge a fee to cover the costs of setting up the loan
• Legal Fees: Legal costs for handling the paperwork involved in the loan
• Admin Fees: Fees charged by the lender for managing the loan

When you approach us, we’ll make sure you know exactly what to expect, and we’ll guide you through the costs associated with your loan.

UK Bridging Loans: At a Glance

• Loan Size: £50,000 to £10 million+
• Property Types: Residential, commercial, high-value properties, land, and development projects
• Location: Available across the UK, with a focus on prime areas like London, the South East, and major cities
• Term: 1-24 months
• Loan-to-Value (LTV): Up to 75% (depending on the property and circumstances)
• Borrowers: Individuals, corporate entities, SPVs, trusts, and more
• Uses: Property purchase, renovation, development, equity release, debt consolidation, and bridging gaps in funding

UK bridging loans are a great option when you need quick access to funds and a traditional mortgage simply isn’t feasible or required. These loans are particularly useful when you face deadlines, like losing a deposit on a property or needing to finalise a deal in a short time frame.

They’re often used for:

• Property Purchases: Secure a deal quickly before the opportunity passes, especially where you’re waiting for another property in your portfolio to sell
• Refinancing: If you need funds urgently to refinance an existing property
• Renovations: Quick finance for property development or refurbishment projects
• Equity Release: Access funds from your existing property for other investments or purposes

In each scenario it's important to consider how the loan will be exited, often with sale of the property such as in the event of a refurbishment project.

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One of the many reasons our clients choose bridging finance is because it can be used in a wide range of scenarios and to suit a wide variety of different needs:

• Property Purchase: Whether you're buying a residential or commercial property, a bridging loan lets you secure the deal while awaiting long-term financing
• Renovation and Development: Use bridging finance to fund property development projects or home improvements
• Debt Consolidation: You can consolidate debts or use the funds from a bridging loan to pay off existing liabilities or meet business obligations
• Equity Release: Unlock the value of your current property to fund new investments or other ventures

Although bridging finance is not as common as traditional mortgages, it is often the best solution in urgent situations. As long as you use the finance responsibly and have a clear repayment plan, bridging loans are no riskier than any other mortgage product.

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In the UK, most bridging lenders offer a maximum loan-to-value (LTV) of about 70 to 75% for residential properties. For commercial properties, the cap is usually lower, around 60 to 65%.

Some lenders might go higher if you can provide extra security, but most prefer to lend conservatively. The LTV you can get also depends on your profile, the type of property, and your exit strategy. For instance, properties in prime central London with strong resale demand often get better terms than those in less popular areas or with more unique features.

In the UK, a bridging loan can usually be completed in 5 to 14 working days if the valuation and legal work go smoothly. The timeline can change depending on whether you are based in the UK or abroad, if more than one property is involved, or if legal searches find any issues.

Private lenders can act quickly, but delays often happen during the conveyancing process. To meet tight deadlines, like for auction purchases, it helps to work with solicitors and brokers who know bridging finance well.

To get a bridging loan in the UK, you’ll usually need to provide proof of identity and address, details about the property, evidence of your deposit, and a clear exit plan. If you’re an international or expat borrower, you might also need certified passport copies, proof of overseas income, and translated legal documents.

Lenders will check the UK Land Registry for any existing charges on the property. The process is generally less strict than for long-term mortgages, but being open and having clear financial records can help speed up approval.

In the UK, you don’t need a notary for a bridging loan. Solicitors handle the whole process, including due diligence, searches, and registering charges with HM Land Registry.

This often makes UK bridging loans faster to complete than in countries that require a notary, though you still need careful legal checks. If you’re a foreign buyer and new to UK property law, it’s important to choose a solicitor who knows short-term finance to avoid delays and make sure everything is done properly.