Specialist
Banks That Offer Bridge Loans
Rates from: Downsizing/Upsizing Releasing Funds From Your Home Short-Term Lease Finance Auction Purchase As at 8th February 2023 Rates from: Light & Heavy Refurb Finance For Unmortgageable Properties Land Purchase with planning As at 8th February 2023 Rates from: Up to 80% LTV Minimum Loan £500k Minimum net income £100k As at 8th February 2023
Residential
Buying Before Selling?
0.41% pm
Development & Refurb
Fast Finance
0.50% pm
Residential
Large Bridging Loans
0.41% pm
Bridging loans are a unique type of property finance that are becoming more and more popular in the modern world.
Property markets move fast, and good deals and dream homes don’t stick around.
If you’re a property investor looking to move quick on a great opportunity, or if you’ve fallen in love with a new family home but haven’t sold yours yet, a bridging loan gives you flexibility and agility to secure the exact property you want, at the right time, and at the right price.
But what banks offer bridging loans? And how exactly do they work, how much do they cost, and how do you get one?
Bridging loans are a form of short term property finance designed to bridge a gap between two financial transactions.
A bridge loan usually has a term of around 12 months, and you need an ‘exit’ to repay your loan in order to be approved.
The ‘exit’ is usually:
You’ll need proof of your assets that will cover the repayment of your loan, or evidence of your ability to get a mortgage to pay off your loan before the end of your term.
Because of the simplicity of the affordability of bridging loans, they can be issued very quickly compared to a standard mortgage that involves complex affordability checks, underwriting processes and credit score reviews.
1. Buying a house before you’ve sold your existing property.
If you’ve found your dream home but are waiting for your home to sell before you complete on your purchase, you could lose out to a cash buyer.
A bridging loan effectively enables you to act as a cash buyer as you’ll have the funds ready to go from your lender.
You then have your full loan term to sell your home which should give you plenty of time, and would even allow for some renovations or refurbishments first to realise its full value.
2. Buying a property to flip on.
A bridging loan could also allow you to purchase a property at a good price with the intention to renovate or develop it, and then sell on for a profit.
You’ll need to ensure you can complete your works within the term of your loan, and provide details and evidence of your plans to your lender.
3. Buying a property at auction
If you’re buying a house at an auction, you need to act quickly and often a standard mortgage won’t be finalised in time.
You can buy the house with a bridging loan, however, and then use a standard mortgage to pay off your loan once it’s been processed.
4. Paying care fees
If you have a large care fee bill that needs paying before your loved one’s property is sold – perhaps if they’ve been moved into care unexpectedly - a bridging loan can fill the gap to cover the fees while the property is tidied up and the sale goes through.
5. Buying an unmortgageable property
If the property you’re purchasing is in poor condition and needs significant development work, you may be unable to secure a normal mortgage against it due to regulatory restrictions from your lender.
A bridging loan can secure the property for you, cover the costs of your developments, and then be repaid when it is in a mortgageable state after you’ve completed your works.
While there are many specialist bridging lenders and private banks that provide bridging finance, the lending pool is considerably smaller compared to standard property finance.
However, there are a range of specialist lenders out there, but they can be difficult to find through a typical Google search.
This is why most people use a specialist bridging adviser when applying for bridge finance.
Mortgage brokers know the market extremely well, and they transact on bridging loans every single day – they'll know the best structure of loan for your situation, and which lender to approach to finance it.
They can also get you the best interest rates available while they’re at it, and make the process as quick and hassle-free as possible for you.
Set up fees and interest rates can vary considerably from case to case depending on the complexities of your finance solution.
However, generally your lender will charge an arrangement fee of roughly 2% of the loan, and you may need to pay a valuation fee to a third party surveyor and legal fees.
However, a bridging adviser can occasionally negotiate an online valuation to be carried out to cut costs, along with using the same solicitors as the lender, which can also save time and money.
Use our bridging loan calculator to get some indicative figures on how much your bridging loan may cost.
To see if a bridging loan is right for you, call us today to arrange a free telephone consultation with one of our experienced bridging advisers.
They will get an understanding of your situation and what you’re looking to do, and advise on the next steps to realise your property aspirations.
Call us on 0117 959 5094 to discuss your requirements.
Rates from: Downsizing/Upsizing Releasing Funds From Your Home Short-Term Lease Finance Auction Purchase As at 8th February 2023 Rates from: Light & Heavy Refurb Finance For Unmortgageable Properties Land Purchase with planning As at 8th February 2023 Rates from: Up to 80% LTV Minimum Loan £500k Minimum net income £100k As at 8th February 2023
Residential
Buying Before Selling?
0.41% pm
Development & Refurb
Fast Finance
0.50% pm
Residential
Large Bridging Loans
0.41% pm
I approached Clifton Private Finance to help me get a mortgage as an Expat working in the Far East. I would normally 'cut out the middle man' on something like this and try to get myself a deal directly with the banks, but I am now sold on the broker concept and wouldn't hesitate to use Clifton Private Finance again. There were a number of complicating factors such as being an expat, the stamp duty holiday, the sheer amount I wanted to borrow and the fact I wanted it all wrapped up before the Stamp Duty holiday ended. It is clear to me now that the relationship that brokers have managed to foster with their banks means they can simply pull levers and make stuff happen that us ordinary folk cannot. Put simply, they are worth every penny, will take most of the stress out of the lending process, and seem to have access to deals that you just won't find on the internet. Thank you George and Jan for all your hard work!
James M
Luther was excellent. Very clear in his advice and explanations of products and was able to move things on very quickly when we ran into difficulties with the estate agents. Without a doubt I would recommend Luther to all friends, family and colleagues. Luther was a joy to deal with and took a lot of the stress out of a troublesome transaction, from my end. I would view Luther as real asset to Clifton Private Finance Ltd.
William W
The team at Clifton Private Finance has been outstanding, not only in helping me to obtain a mortgage on a slightly unusual home, but also in continuing to provide support and liaise with the lender and solicitors through to completion. Thank you for making the process of buying my first home much easier.
Chantelle S
Sam O'Neill, and the new lender he identified for me, worked tirelessly together using my time constraints, to make sure my mortgage application was completed on time. They are a brilliant company to work with, fast, efficient, open and transparent from the very beginning, and turned a seemingly impossible situation into a viable one. Sam was brilliant throughout the whole process and I would highly recommend him, and his colleague Helen, to anyone without hesitation, I cannot speak highly enough about them.
Myr B
I was incredibly lucky to find Clifton Private Finance after a search on line as their service has been more than exemplary. My point of contact was Sam 0’Neill and he was happy to help at every stage during the application of the bridging loan, making a stressful process much easier to deal with. He was always available by phone or email and gave prompt answers to queries I had as well as always getting back to me when he said he would. That to me is excellent customer service and I cannot thank him personally or the company enough for the support they have given me.
C Jefferey
Adam cannot thank you enough for all your support throughout this arrangement. You have gone more than the extra mile to support us. Without you we would not have got our dream retirement home. You have been most professional and personable. Liz and I would be more than happy if you wanted to use us a reference with respect to any future clients.
Nigel & Liz K - Bristol
You have certainly shown me that you do everything for your clients, including tolerating their excessive emails and questions for updates. I have been kept in the loop, from yourself, about why the delays were occurring (Nationwide, post etc) which I would like to highlight that I really appreciated. I certainly will be able to recommend you to others as and when the need arises.
Mr Morris
I recently contacted Clifton Private Finance after a Google search for bridging finance providers and was immediately struck by their efficiency and support. Forms were emailed over almost immediately and the necessary finance was arranged within a few days. None of the other companies I contacted came close to their professionalism, and the quote that I eventually received was impressive. Thank you Adam, your help has enabled us to reserve the house that we wanted and I certainly recommend you to others.
Mr M. R. - Oxford
Absolutely brilliant. The service was first class, got everything sorted efficiently and were always friendly. Any fees were negligible compared to the service offered. Robert was particularly outstanding.
Charles N
My advisor, Robert, was very helpful in finding the mortgage to suit me. He kept me up to date throughout the process and dealt with any issues when they arose.
Rowena C
