A bridging loan is a form of short-term funding which is used to ‘bridge’ a gap between an incoming debt and money becoming available.
Funds are typically released after a set of terms and a repayment plan are agreed between a lender and borrower.
The main difference between a bridging loan and a regular loan is short-term access to funds can be arranged very quickly.
We offer bridging loans from £200k up to £3m.
There are many reasons why someone may prefer to apply for a bridging loan rather than a long term mortgage. These include:
- To proceed with a purchase prior to selling your home
- Those who own a property which would not qualify for a standard mortgage, for example a home which needs a new kitchen, bathroom or renovation
- Those who wish to purchase a property, but are unable to proceed as cash is tied up in a property which has not sold yet
- To fix a broken property chain if your buyer pulls out last minute
There are no early repayment charges on a bridging loan so there’s no penalty for paying it off sooner than you planned.
A repayment plan is needed to qualify for a bridging loan.
This is a plan for how a bridging loan will be repaid, usually the sale of a property.
Repayment terms can be flexible, we stay in contact with you during the borrowing period to ensure that you are on the right track to achieve your repayment plan.
We provide regulated bridging finance for residential property which means there are controls and rules put in place by a third party, this provides extra security for you. We are authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority under reference no. 206041.