SPECIALIZATION
Bridging
Short-term bridging finance for property transactions that need quick completion, such as chain breaks, property development, or auction purchases. These loans typically have higher rates but provide fast access to funds.
What is Bridging?
Understanding the fundamentals and purpose of bridging financing
Short-term bridging finance for property transactions that need quick completion, such as chain breaks, property development, or auction purchases. These loans typically have higher rates but provide fast access to funds.
Bridging mortgages are designed for specific property types and investment strategies, offering tailored terms and conditions that differ from standard residential mortgages.
Before pursuing bridging financing, it's crucial to understand the requirements and process involved. Specialist brokers can guide you through every step of the application process.
Key Features
Essential characteristics that make bridging mortgages unique
Competitive Rates
Access market-leading rates with flexible terms to suit your bridging strategy.
Fast Funding
Quick decisions and rapid funding for time-sensitive opportunities.
Flexible Terms
Tailored funding solutions for various development types and scales.
Expert Support
Dedicated specialists to guide you through the entire process.
High LTV Options
Borrow up to 75% of the project value with competitive options.
No Early Repayment
No penalties for early repayment, giving you flexibility in your exit strategy.
Eligibility Requirements
Key criteria you need to meet to qualify for bridging financing
Property Requirements
- Suitable property type for bridging
- Valid planning permission (if required)
- Clear investment strategy
- Good location and market conditions
Borrower Requirements
- Relevant experience preferred
- Good credit history
- Adequate deposit (varies by type)
- Strong financial position
Application Process
Step-by-step guide to securing your bridging mortgage
1
Free Consultation
45 minDiscuss project and funding requirements
2
Application & Documentation
2-3 daysSubmit forms and financial documents
3
Property Valuation
1-2 weeksProperty appraisal and development assessment
4
Lender Assessment
2-4 weeksProject feasibility and borrower review
5
Legal & Monitoring
2-3 weeksLoan agreement and monitoring setup
6
Project Monitoring
OngoingStaged fund releases and oversight
Total: 5-14 days
Current Bridging Rates
Latest interest rates and pricing for bridging mortgages
Interest Rates
Typical range for bridging mortgages
0.85% - 1.25%
0.75% - 1.5%
Deposit Required
Minimum deposit for bridging financing
30% - 35%
Min: 25%
Processing Time
From application to completion
5-14 days
Average timeline
Rates vary by lender and circumstances. Contact specialist brokers for personalized quotes.
Key Features of Bridging Mortgages
What sets bridging mortgages apart from standard options
Fast access to funds within days or weeks
Flexible lending criteria and quick decisions
No monthly payments required (interest rolled up)
Suitable for chain breaks and time-sensitive purchases
Exit strategy flexibility
Eligibility Requirements
Detailed criteria for qualifying for bridging financing
Borrower Requirements
- Clear exit strategy for the loan
- Strong financial position and credit history
- Adequate deposit and reserves
- Property investment experience preferred
- Professional team in place
Property Requirements
- Suitable property type and condition
- Good location and market value
- Clear title and legal ownership
- Adequate insurance coverage
- Realistic valuation and market conditions
Benefits & Considerations
Weighing the advantages and important factors for bridging mortgages
Benefits
- Quick access to funds for time-sensitive transactions
- Flexible terms and exit strategies
- No monthly payment requirements
- Suitable for various property types
- Professional support throughout the process
Important Considerations
- Higher interest rates than traditional mortgages
- Short-term nature requires clear exit strategy
- Rolled-up interest increases total cost
- Limited time to arrange long-term finance
- Potential for higher fees and costs
Fees Guide
Understanding the costs and fees associated with bridging mortgages
Arrangement Fee
Lender setup fee for bridging finance
1.5% - 2.5%
of loan amount
Valuation Fee
Professional property and development assessment
£500 - £2,000
one-time cost
Legal Fees
Loan documentation and property transfer
£1,000 - £3,000
legal costs
Monitoring Fee
Fee for monitoring the progress of development work and releasing funds in stages.
£300 - £800
ongoing
Broker Fee
Fee for arranging the development finance. Only charged upon successful completion.
0.5% - 1.5%
on completion
Important Notice
Fees can vary significantly between lenders and depend on your specific circumstances. Brokers will provide you with a detailed breakdown of all costs before you proceed.
Top Bridging Brokers
Verified specialist brokers with expertise in bridging financing
Frequently Asked Questions
Common questions and answers about bridging mortgages
How quickly can I get bridging finance?▼
A:Bridging finance can typically be arranged within 5-14 days, depending on the complexity of the case and the lender's requirements. Some lenders can provide funds even faster for straightforward cases.
What is an exit strategy for bridging finance?▼
A:An exit strategy is your plan to repay the bridging loan, such as selling the property, refinancing with a traditional mortgage, or using other funds. Lenders require a clear and realistic exit strategy before approving the loan.
Do I need to make monthly payments on bridging finance?▼
A:No, most bridging loans have rolled-up interest, meaning you don't make monthly payments. The interest is added to the loan balance and repaid when you exit the loan. However, some lenders offer monthly payment options.
What property types can I use bridging finance for?▼
A:Bridging finance is available for residential properties, commercial properties, land, and mixed-use properties. The specific criteria and terms may vary depending on the property type and intended use.
How much can I borrow with bridging finance?▼
A:Bridging loans typically range from £50,000 to £10 million or more, with loan-to-value ratios usually between 65-75% of the property value. The exact amount depends on the property, your circumstances, and the lender's criteria.
What are the typical interest rates for bridging finance?▼
A:Bridging finance rates typically range from 0.85% to 1.25% per month, which is higher than traditional mortgages due to the short-term nature and increased risk. Rates may vary based on the loan amount, property type, and your circumstances.
Can I get bridging finance with adverse credit?▼
A:Some specialist lenders may consider bridging finance for borrowers with minor credit issues, though the criteria may be stricter and rates higher. You'll typically need a larger deposit and a strong exit strategy.
What happens if I can't exit the bridging loan on time?▼
A:If you can't exit on time, you may face higher interest rates, additional fees, or the lender may take possession of the property. It's crucial to have a realistic exit strategy and contingency plans in place.
Can I use bridging finance for a chain break?▼
A:Yes, bridging finance is commonly used for chain breaks, allowing you to complete your purchase while waiting for your property to sell. This can help prevent the chain from collapsing and losing your dream home.
What documents do I need for bridging finance?▼
A:You'll need proof of income, bank statements, property details, exit strategy documentation, and evidence of your deposit. The exact requirements vary by lender and the complexity of your case.
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