What is a bridging loan?
A bridging loan is a short-term, high-speed funding solution designed to 'bridge' the gap between a property purchase and a long-term exit strategy. It allows investors to move quickly on opportunities where high-street banks are often too slow to act.
I broker the deal, you secure the asset. I focus on navigating the lending landscape to find the exact lender and structure that fits your project, ensuring your capital is positioned for maximum impact.
Where Speed Meets Strategy: When to Use Bridging
Bridging finance isn't just about speed; it's a strategic tool for property investors to secure opportunities that traditional lenders simply can't handle.
Auction Purchases
When the hammer falls, you have 28 days to complete. We secure the funds to ensure you never lose your deposit or the deal.
Chain Breaking
Don't let a slow sale lose you your next acquisition. Bridge the gap between your purchase and your eventual sale or refinance.
Property Refurbishment
Acquire properties in un-mortgageable condition. Use bridging to fund the purchase and works, then exit onto a standard mortgage.
FAST TURNAROUND
7–14 DAYS
Time is your most valuable asset in property. My bridging solutions are built for speed, delivering funded offers within 7 to 14 days so you never miss a clear opportunity. I expert-broker the right lender to match your urgency and structure the deal to move as fast as you do.
Bridging Loan Rates Explained Simply
Understanding your costs shouldn't be complicated. We broker the right lender for your profile and ensure the rate structure matches your project’s cash flow.
- • Monthly Interest: Rates typically range from 0.5% to 1.1% per month.
- • Retained Interest: Interest is often added to the loan, meaning no monthly payments.
- • Rolled-Up Interest: Interest is paid in one lump sum at the end of the term.
- • Arrangement Fees: Usually 2% of the loan amount, paid to the lender for setup.
The rate we secure depends on your experience, the property type, and the LTV. My role is to structure these components so you only pay for what you need, with no hidden surprises or complicated exit fees.
Loan-to-Value (LTV) Explained
LTV stands for Loan-to-Value. It is the percentage of the property's value that a lender is willing to lend you. In bridging finance, LTVs usually range from 65% to 75% of the market value. Understanding this ratio is vital because it determines how much cash you need to bring to the table and directly influences the interest rate you'll pay.
Plain-English Example
If you're buying a property worth £200,000 and the lender offers a 75% LTV bridging loan:
• Maximum Loan: £150,000 (75% of £200k)
• Your Deposit: £50,000
I work with lenders to stretch these ratios where possible, ensuring your capital isn't tied up unnecessarily while securing the most competitive rates available.
An Iron-Clad Exit Strategy is Non-Negotiable
Lenders don't just care about how you'll use the money; they care about how they'll get it back. As your broker, I ensure your exit plan—whether it's long-term refinancing or a strategic sale—is robust enough to satisfy even the most stringent credit committees.
Exit One: Refinance
The most common approach for long-term investors. We bridge the purchase and works, then transition you to a standard term mortgage (BTL or Commercial) once the value is added.
Exit Two: Sale
Typically used for fix-and-flip projects. The bridging loan is repaid from the proceeds of the open market sale once the development or refurbishment is complete.