Bridging Loan Types & Rates
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Refurbishment Finance
0.65% monthly
Starting from
Up to 75% LTV net of purchase price
Up to 100% of refurbishment costs
Rates as low as 0.65% per month
£100k to £5m+
Up to 18 months
For property development projects
Best for: Conversions, renovations
Purchase Bridging
0.60% monthly
Starting from
Up to 75% LTV
Up to 100% LTV with additional security
Rates as low as 0.69% per month
£100k to £10m+
Up to 18 months
For a range of purchasing solutions
Best for: Property chains, auctions, investments
What monthly rates should you expect?
| Loan to Value | Rates Starting From |
|---|---|
| up to 50% | 0.52% |
| up to 60% | 0.61% |
| up to 70% | 0.67% |
| up to 75% | 0.74% |
| 80% + | 0.80% |
How quickly can I get bridging finance approved?
Cases can be approved and drawn in as little as days for time sensitive cases. We collect all documentation from the start and have strong relationships with reliable lenders. This means we can move quickly.
What’s the maximum I can borrow?
We arrange bridging loans from £25,000 up to £5 million and upwards. The amount depends on the property value and your individual circumstances.
Do I need perfect credit for a bridging loan?
Not necessarily. Bridging lenders focus more on the property’s value and your exit strategy than perfect credit scores. We work with lenders who consider various credit profiles.
What are the typical costs involved?
Costs typically include arrangement fees (1-2%), legal fees (£1,500-£3,000), valuation fees (£500-£1,500), and monthly interest payments. We provide a full cost breakdown upfront.
What happens if I can’t sell my property in time?
Most bridging loans can be extended if needed, though this may incur additional fees. We also work with lenders who offer flexible exit strategies and can help restructure your loan if circumstances change.
Can I use bridging finance for commercial properties?
Yes, bridging loans are available for commercial properties including offices, retail units, warehouses, and mixed-use developments.
What documentation do I need to provide?
Typically you’ll need ID, proof of income, bank statements, property details, purchase contracts, and your exit strategy. We collect all the information lenders need to progress with your application.
How do bridging loans compare to traditional mortgages?
Bridging loans are faster (days vs months), have higher interest rates, shorter terms (1-24 months), and focus on property value rather than income multiples. They’re designed for time-sensitive situations.
What is an exit strategy and why is it important?
An exit strategy is your plan to repay the bridging loan – typically through property sale or refinancing. Lenders require a detailed exit plan to ensure you can repay the loan within the agreed term.
Are there any restrictions on property types?
Most standard residential and commercial properties are acceptable. Some lenders have restrictions on ex-local authority properties, high-rise flats, or unusual constructions. We’ll advise on suitability during your application.
What happens at the end of the loan term?
You must repay the loan in full through your planned exit strategy. If you need more time, extensions are often possible but may incur additional fees. Early repayment is usually allowed without penalties.
Can I extend my bridging loan if needed?
Yes, most lenders offer loan extensions, typically for 3-6 month periods. Extensions can incur additional fees and interest, so it’s important to have a realistic exit strategy from the start.
Frequently Asked Questions
Up to 75% LTV
Maximum leverage
100% Refurb Costs
Maximum leverage
Up to 18 months
Flexible Terms
Rates from 0.6%
Market Leading Rates
5 Minutes
From Enquiry to Fully Packaged Application
Days
To Complete Loans and Drawdown
Hours
Compare Full Loan Offers that won't change
Development Exit
0.65% monthly
Starting from
Up to 75% LTV net of GDV.
Up to 100% of remaining site costs
Rates as low as 0.65% per month
£100k to £5m+
Up to 18 months
For exiting development projects
Best for: Refinancing complete developments
Planning Gain
0.70% monthly
Starting from
Up to 70% LTV net of GDV.
Up to 100% of planning costs
Rates as low as 0.70% per month
£100k to £5m+
Up to 18 months
For planning gain
Best for: Gaining planning consent for future developments
A Representative Example.
A customer takes a £500,000 bridging loan over 6 months to assist with the purchase of a property. The loan has an interest rate of 0.6% per month (7.2% per annum) and a 2% arrangement fee (£2,000) which is added to the loan.
Monthly interest: £3,000
Total interest over 6 months: £18,000
Total cost of credit (including fees): £28,000
Total amount repayable: £528,000
The customer then refinances onto a standard residential mortgage at the end of the term.
The overall cost for comparison is 10.4% APRC.
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