Bridging Loans

If you need money fast, without many of the usual checks involved with applying for finance, you might wish to consider a Bridging Loan.

These are loans which are designed for use over a short period of time, periods of a few months rather than years. The two main scenarios that we most often come across are as follows:

-A client has found a property which they wish to buy, but hasn’t yet sold their existing property, the money from which is needed for their onward purchase. In these cases, a bridging loan can be arranged quickly, which ensures they won’t lose their desired property. Once the existing property has been sold, the bridging loan is repaid.

-A client either owns a property or wants to purchase a property which is in a state of disrepair and which is therefore un-mortgageable. Bridging finance can be arranged quickly, in order to provide funds to refurbish the property. Once the property has been repaired, funds can be sought from mainstream lenders and the bridging loan can be paid off.

Bridging loans are generally offered only by specialist lenders and our status as a Directly Authorised firm allows us to work with providers across the whole of the market. We are confident that we can source finance in this area in all conceivable circumstances.

If you are considering a Bridging Loan, click here or call us to speak with one of our advisers.


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About Clifford Davis

Clifford Davis is a premier provider of property-related financial advice. Based in Barnet, North London, we pride ourselves on being able to advise and to provide guidance in all areas of property-related finance.

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Frequently asked questions

Answers to the most common question we get asked
What is a bridging loan in the UK?
A bridging loan is a short-term loan used to bridge financial gaps between buying a new property and selling an existing one. It can also be used for property development or refurbishment, auction purchases, or other urgent financial needs.
What are the typical uses for a bridging loan in the UK?
Bridging loans are used for various purposes, including buying property quickly, funding property development, buying properties at auction, refurbishing a property before selling it, and resolving short-term cash flow issues.
What are the interest rates for bridging loans in the UK?
Interest rates for bridging loans in the UK are higher than those for traditional mortgages. Rates can vary widely depending on the lender, loan term, and the borrower's creditworthiness.
What is the application process for a bridging loan in the UK?
The application process typically involves providing details about the property, your financial information, and the purpose of the loan. Lenders will assess the loan request, the property's value, and your ability to repay.
How quickly can I get funds from a bridging loan in the UK?
Bridging loans are known for their speed, and funds can often be available within a few weeks. Some lenders may offer even quicker approval and disbursement.
How does a bridging loan work in the UK?
Bridging loans work by providing borrowers with a quick injection of cash, often within a few weeks. They are secured against property and typically have higher interest rates than standard mortgages. The loan is repaid, usually within 12-18 months.
What is the loan-to-value (LTV) ratio for bridging loans in the UK?
The LTV ratio for bridging loans can vary but is typically in the range of 70% to 75% of the property's value. In some cases, it can go higher depending on the lender's criteria.
Are there different types of bridging loans in the UK?
Yes, there are different types of bridging loans, including closed bridging loans (with a fixed repayment date) and open bridging loans (with a more flexible repayment date). Some bridging loans are regulated, while others are unregulated, depending on the purpose.
Can I get a bridging loan in the UK with a bad credit history?
It may be possible to obtain a bridging loan with bad credit, but it can be more challenging, and interest rates may be higher. Specialist lenders may offer products for individuals with adverse credit.
Can I repay a bridging loan early in the UK?
Yes, you can typically repay a bridging loan early without penalties. However, you should check the terms and conditions with the lender to ensure there are no early repayment charges.
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