Simon Nicholson

Experly compared by Simon Nicholson

Products Updated August 5, 2018

Compare Bridging Loans

If you need a bridging loan we can help. Our experts can quickly arrange and compare any type of bridging loans for a wide range of purposes from auction purchases, commercial buildings, land and property development.

Our award winning bridging experts can find you the best deal from across the market. They have access to exclusive deals & rates.

Questions? Call us on 0161 820 8099

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All credit types
Rated 5.0/ 5

Smart Money Why?
Why?

This provider is our Expert’s Choice in its category as it won tops marks for the following.

  • TRUST
  • VALUE
  • EXPERTISE & KNOWLEDGE
  • CUSTOMER SERVICE

Learn more about how we review and assess the providers here on Lending Expert.

Loan Amount
£10,000 - £10,000,000

Monthly Rate
From 0.49%

Loan Term
1 - 24 Months

Loan Type
Bridging Loans

Status
Homeowners Only
Max LTV 85%

Award winning broker of the year Smart Money have made it to the top of our list as our No 1 recommended provider for bridging loans. Smart Money are not available direct to the public and so we are very excited to be able to offer them here via Lending Expert.

Learn More Available via broker only
All credit types
Rated 5/ 5

Together

Loan Amount
£26,000 - £1,000,000

Monthly Rate
From 0.49%

Loan Term
1 - 12 Months

Loan Type
Bridging Loans

Status
Homeowners Only
Max LTV 75

A bridging loan from Together gives you the control to buy your new property quickly, even if there’s a break or delay in the chain. So you don’t have to miss out on the property you want. There are no monthly repayments to make, as interest is rolled-up for the term of the loan.

Learn More Available via broker only
All credit types
Rated 5/ 5

Shawbrook Bank

Loan Amount
£50,000 - £10,000,000

Monthly Rate
From 0.55% %

Loan Term
1 - 24 Months

Loan Type
Bridging Loans

Status
Homeowners Only
Max LTV 75%

A bridging loan is a short-term funding option which can help you ‘bridge’ the gap between the completion of a sale and accessing credit, meaning you avoid losing the home you have your sights on.

Learn More Available via broker only
All credit types
Rated 5/ 5

United Trust Bank

Loan Amount
£10,000 - £10,000,000

Monthly Rate
From 0.55%

Loan Term
1 - 36 Months

Loan Type
Bridging Loans

Status
Homeowners Only
Max LTV 70%

United Trust Bank’s award winning Bridging department provides FCA regulated and unregulated short term loans for a variety of purposes, secured against a wide range of property.

Learn More Available via broker only
All credit types
Rated 5/ 5

LendInvest

Loan Amount
£75,000 - £1,000,000

Monthly Rate
From 0.59%%

Loan Term
1 - 36 Months

Loan Type
Bridging Loans

Status
Homeowners Only
Max LTV 75%

Bridging finance with LendInvest allows you to quickly secure a property, generate short-term cash flow or fund building works. Get certainty of funding now, before selling on or securing longer-term refinancing.

Learn More Available via broker only
All credit types
Rated 5/ 5

Greenfield Capital

Loan Amount
£25,000 - £5,000,000

Monthly Rate
From 0.65%%

Loan Term
1 - 12 Months

Loan Type
Bridging Loans

Status
Homeowners Only
Max LTV 70%

Greenfield Capital was born in 2011 out of a requirement for common sense underwriting in bridging, a need for excellent service and integrity. Unlike many lenders in the market today Greenfield do not have arbitrary strict criteria to satisfy.

Learn More Available via broker only
All credit types
Rated 5/ 5

Octopus Property

Loan Amount
£50,000 - £2,000,000

Monthly Rate
From 0.60%%

Loan Term
1 - 36 Months

Loan Type
Bridging Loans

Status
Homeowners Only
Max LTV 70%

Octopus offer some of the largest loans in the bridging finance industry, ranging from £50,000 to £25 million. They also consider even larger loans for experienced property professionals.

Learn More Available via broker only
All credit types
Rated 5/ 5

Funding 365

Loan Amount
£1,000,000 - £25,000,000

Monthly Rate
From 0.65%%

Loan Term
2 - 18 Months

Loan Type
Bridging Loans

Status
Homeowners Only
Max LTV 75%

Funding 365 is a London based bridging lender who provide bespoke 3 to 12 month loans from £100,000 to £5m plus, secured against properties across England and Wales. Rates start at just 0.65% for residential investment properties and 0.75% for commercial properties.

Learn More Available via broker only
All credit types
Rated 4/ 5

Apex Bridging

Loan Amount
£50,000 - £2,000,000

Monthly Rate
From 0.65%%

Loan Term
4 - 12 Months

Loan Type
Bridging Loans

Status
Homeowners Only
Max LTV 80%

Apex Bridging is a unregulated bridging lender that provides loans from £50K - £2M to both individuals and companies for business purposes only in the UK. Apex can provide loans up to 80% loan to value of the on market valuation.

Learn More Available via broker only
All credit types
Rated 5/ 5

Mint Bridging

Loan Amount
£75,000 - £5,000,000

Monthly Rate
From 0.75%%

Loan Term
1 - 18 Months

Loan Type
Bridging Loans

Status
Homeowners Only
Max LTV 80%

Mint Bridging provide loans to meet the exact needs of every borrower. They are a unique provider of individually structured, short-term finance for property purchases, developments and general capital raising requirements.

Learn More Available via broker only
All credit types
Rated 5/ 5

Masthaven

Loan Amount
£100,000 - £5,000,000

Monthly Rate
From 0.68%

Loan Term
1 - 18 Months

Loan Type
Bridging Loans

Status
Homeowners Only
Max LTV 70%

Masthaven bridging loans are a short term lending solution for circumstances where speed and reliability are required. Used as an interim funding option for property purchases, quick release of equity or debt consolidation, we have a range of suitable options.

Learn More Available via broker only
All credit types
Rated 5/ 5

Bridgebank Capital

Loan Amount
£125,000 - £10,000,000

Monthly Rate
From 0.85%

Loan Term
1 - 12 Months

Loan Type
Bridging Loans

Status
Homeowners Only
Max LTV 70%

A bridging loan is a short-term funding option which can help you ‘bridge’ the gap between the completion of a sale and accessing credit, meaning you avoid losing the home you have your sights on.

Learn More Available via broker only
All credit types
Rated 5/ 5

Hope Capital

Loan Amount
£100,000 - £5,000,000

Monthly Rate
From 1.0%

Loan Term
1 - 24 Months

Loan Type
Bridging Loans

Status
Homeowners Only
Max LTV 75%

Hope Capital is a 100% privately funded specialist provider of bridging loans of up to £5 Million for a term of up to 12 months. They can offer up to 75% loan to value (LTV) loans on a short term basis.

About Bridging Loans

The property market is growing rapidly and showing no signs of stopping, putting an increased demand on those wanting to purchase a property to complete as quickly as possible so they can secure the home they want. Many sellers are looking for buyers that can buy their properties without complications such as chains and mortgage applications. While it can be risky to purchase a new home without first selling the old one, sometimes it is the only option in order to get your dream home.

What is a bridging loan?

Bridging loans are specifically designed to bridge the gap between one form of finance to another. They are usually a short-term solution for covering the period between the sale of one property and completion date on another.

Mortgages and bank loans could also be used for this purpose. However, they provide a much slower service as the application processes are lengthy and funds take time to be released, unlike with a bridging loan. Bridging loans offer a simple alternative where applications are processed quickly, and funds can be released within a matter of days. Bridging loans are great for bridging the gap between a house sale and purchase, but property developers or auction buyers can also use them.

The Requirements

Bridging loans come with only two distinctive requirements; to be a property owner and over 18 years of age. The loan amount is determined and guaranteed by the value of the property, so usual criteria such as income and credit history are not as crucial to bridging loan lenders.

A lot of bridging loan lenders will consider those with a bad credit history, CCJs and even previous defaults and arrears because they use the property as collateral. The property you are buying doesn’t even have to be in a good condition and can be in need of renovations and repairs, which makes bridging loans a perfect option for property developers.

If the full loan amount is not repaid at the end of the loan period, the lender can repossess and sell the property to repay the debt.

What can I receive with a bridging loan?

As with most lending options, the size of the bridging loan depends on the lender and the borrower’s circumstances. Most bridging loan lenders will lend up to 70% of the property’s value, and the minimum loan amount is £10,000. The majority of lenders don’t have a maximum lending amount for bridging loans as it is entirely dependent on the property value.

Bridging loans are available for anywhere between one day to 12 months, but as they are designed to be a short-term solution the maximum loan term is often 12 months.

When it comes to the costs involved with taking out a bridging loan, this can depend massively on the type of bridging loan you choose. Bridging loan lenders usually offer various interest rate structures including retained, rolled up and structured. Be sure to look into the various options available to work out which is right for you and your situation. As well as interest rates, bridging loans are subject to a lot of additional charges and fees including valuation fees, arrangement fees, legal fees, exit fees and broker fees.

Positives of bridging loans

  • Funds applied for are released very quickly
  • Many bridging loan lenders will base the loan on the property value as opposed to the purchase price
  • Some bridging loan lenders will base the loan on the property’s development value, which is great for property developers
  • Purchasing a property is made simple by eliminating chains and lengthy mortgage applications
  • Buying a property with a bridging loan gives you the same benefits as being a cash buyer.

Negatives of bridging loans

  • Bridging loans come with a high risk of defaulting, the high-interest rates and additional charges can be unmanageable
  • As they are short-term and convenient, the interest rates and additional charges are high
  • Most lenders require you to pay their legal fees as well as your own
  • If you obtain a bridging loan, you often need to rely on a longer-term finance option as an exit plan
  • Defaulting on a bridging loan will have a negative impact on your credit score.

If you are in need of fast funding for a property sale, whether it is for a property development, buy-to-let or personal use, a bridging loan could be the perfect option for you. Be sure to weigh up all your options before making a final decision and consult a broker to help you find the best deal on bridging loans. The range of additional fees and charges involved with this type of borrowing can make it confusing to navigate the best deals.

 

FAQ's

What is a bridging loan and when are they typically used?

A bridging loan is a temporary loan for a short period until a more longer term solution can be found or arranged. Bridging loans are often used in property transactions by landlords, developers, and those who buy property via an auction. Bridging loans can also be used to pay overdue debts or to cover unexpected expenses in emergency situations. Bridging loans are also popular with home movers when there is a gap between the sale and completion dates in a chain. A bridging loan as the name implies is used to 'bridge the gap' when funding is required.

What is the loan duration on a typical bridging loan?

Bridging loans are only a short term lending solution. Loans typically are from a few months to a couple of years maximum. Each lender will have it's own terms and conditions regarding the length of the loan term.

Are bridging loans secured?

Yes. Bridging loans are secured against property, both residential, commercial and buy to let. They are secured on either a first or second charge basis.

Can I take out a bridging loan aqainst a buy-to-let?

Yes. Most lenders in the market place will be happy to provide a bridging loan secured on a buy to let property.

What is an open bridging loan and what does it mean?

If you have heard of the phrase an open bridging loan then this simply means that the repayment date is 'open' and has not been set at the start of the loan. You will generally be expected to pay of an open bridging loan within the year. A closed bridging loan is a loan that is issues with a set date in which the loan is to be repaid.

Can the loan interest be rolled up until the end of the loan?

Yes. Lenders will also the interest charges to be paid in a lump sum when you repay the capital of the loan at the end of the loan term.

Do I need to show proof of income to get a bridging loan?

Yes. Under most circumstances you will be required to show proof of earnings to demonstrate you can afford the loan repayments.

Can I get a bridging loan while self employed?

Yes. Bridging loans like other loans are available for self employed people. You will however need to show proof of income either in the form of business accounts, or SA302 documents from HMRC that shows your taxable income for the financial year.

Are bridging loans available to pensioners and older borrowers??

Yes. Bridging loans are available to older borrowers over 65, 70 or up to 80 years of age for some lenders. As bridging loans are only for short term borrowing then your age is less of an issue to the lender. You will however, need to show proof of income and demonstrate how you will meet loan repayments for the duration of the loan.

What is a the maximum LTV I can borrow?

Bridging lenders generally go to a maximum of 75% loan to value. However, this generally depends on the lenders appetite to risk and will be based on a case-by-case basis.

Are there any upfront costs to pay?

You will be required to pay for legal fees and a valuation. Other costs such as an arrangement fee or broker fee can be added to the loan.

What type of exit routes would be required?

As bridging loans are not a long term lending solution, the bridging lender as part of the initial application process will need to check that you have an adequate way to pay off the loan, this is the 'exit route'. This is generally done by a property sale, or by means of a remortgage in the future for example.

Can a bridge loan be used to buy land?

Yes, bridging finance can be used to purchase land either residential or commercial land plots. If you find a plot of land you want then a bridge loan can be used to buy the land prior to planning persmission being obtained.

Can I used a bridging loan to fund a property purchase abroad?

Yes. A bridging loan that is secured against UK assets can then be used to buy property abroad, or against the purchase of a property overseas.

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