The Best Bridging Rates.


Why use a bridging loan?

Bridging finance is used by individuals or companies looking for short term secured funding, typically for 18 months or less. Most bridging loans are used for property transactions to 'bridge the gap' before more permanent funding is arranged.

Bridging finance is often more expensive than longer term borrower but the benefit of a bridging loan is that it offers a borrower more flexibility and is faster to arrange than other lending types.

Some Examples of the Uses of Bridging Loans:

Bridging to gain quick access to funds

Bridging loans are comparatively quick to arrange. Banks and high-street lenders can take several weeks to process a loan request but bridging lenders specialise in providing loans quickly. In some cases bridging lenders can provide access to funds within a few days.

Bridging to break the chain (chain-break finance)

A common use of bridging finance is to help a buyer fund their new house purchase before their existing property has sold. For example, many home buyers find themselves in a property chain, if a member of that chain falls out and the chain is broken. Bridging finance can provide short-term funding for a buyer to continue with their house purchase and stop them from losing the property they wish to buy. Bridging loans have saved many home purchases from falling through.

Bridging to fund an auction purchase

Due to the immediate nature of the purchase, it can be difficult to arrange a mortgage when buying property at auction. Bridging loans can be arranged quickly to fund auction purchases before longer term funding is arranged.

Bridging to self-build, build a house

People building their own house can struggle to find funding from traditional mortgage lenders and high street banks. A bridging loan can provide short term funding for the term of the build (typically up to 18 months) before the house-builder is ready to refinance with a mortgage lender.

Bridging to develop property, property development

House builders and property developers often use bridging finance to fund their development schemes; used for site/property purchases and build costs, the short-term nature of these loans fit the lifecycle of a typical development project.

Bridging to refurbish or convert a property

People can struggle to find funding for properties to be converted or in need of refurbishment. Bridging finance allows the property owner to finance the purchase of their property and/or building works required before they revalue the property and apply for a mortgage.

Bridging to finance a buy-to-let

Landlords can utilise bridging finance to purchase property to let. For example, landlords may use bridging as short-term funding to purchase additional property and grow their portfolio.

Bridging as funding without monthly interest

Bridging loan interest can be repaid monthly, 'rolled-up' or retained. Borrowers who 'roll up' the interest are not required to repay it monthly, instead the loan and interest is repaid in full at the end of the term.

Other examples of bridging loan usage:

  • Bridging to purchase using the value rather than the purchase price
  • Bridging to quickly repay debts such as a tax bill
  • Bridging to finish a building project that has overrun
  • Bridging to fund 'non-typical' property such as:
    • semi-commercial / commercial property
    • farms / agricultural property
  • Bridging to fund a business venture
  • Bridging to refinance an existing bridging loan.