Simon Nicholson

Expertly compared by Simon Nicholson

Products Updated October 15, 2019

Bridging Loan Calculator & Quotes

If you need a bridging loan we can help. Our brokers 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. Use the bridge loan calculator to get an estimate of monthly repayment costs and interest rates and fees.

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

1 providers expertly compared:

Learn More
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 100%

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 pleased to be able to offer them here via Lending Expert.

Read our customer and visitor reviews for this product:
Rating: 4.5 / 5 with 2 votes
Good range of lenders and products
by Paul Johnson

Good range of lenders and products and rates around 75% LTV.

Helpful staff
by J Davidson

Helpful staff and knowledgeable in what products are available.

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.

Bridging Loan Calculator – 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, while some lenders provide as much as 100% bridging loans where additional security is provided, or the purchase is below market value. For most lenders the minimum loan amount is between £10,000 – £30,000. 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. To get an estimate of costs use this bridging loan calculator.

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.

What rates of interest are available at 70% LTV?

Bridging finance at 70% LTV

The interest rates payable at 70% LTV will depend on the lender available and the term of the loan. Contact our finance brokers above and they will be able to provide you with a free quotation and explain all the rates and costs associated with the loan, including any fees payable and the T&C’s of the finance.

Which bridging finance lenders offer loans at 70% loan to value?

There are a good selection of lenders will to offer finance around this level depending on the security offered, the amount required and the term of the loan.

What rates of interest are available at 75% LTV?

Bridging loans at 75% LTV

The interest rates payable will depend on the lender available and the term of the loan. Contact our finance brokers above and they will be able to provide you with a free quotation and explain all the rates and costs associated with the loan, including any fees payable and the T&C’s of the loan.

Which bridging finance lenders offer loans at 75% loan to value?

Many bridging lenders see offering loans at a higher loan to value as a greater risk therefore the market place is more limited at around 75% LTV. However there are still a good selection of lenders will to offer finance around this level depending on the security offered, the amount required and the term of the loan.

 

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. Use the bridging loan calculator above to get an estimate of costs and fees.

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.


Lending Expert is a credit broker and comparison website, we're not a lender.

We bring together the very best financial providers and products from across the market place.

Warning: Late repayment can cause you serious money problems.
For help, go to moneyadviceservice.org.uk