Bridging loan for any purpose
Securing bridging loans with expertise and lender relationships to bridge financial gaps without income and credit checks.
See if you pre-qualify for a mortgage
Bridging loan for any purpose
We can secure your bridging loan with expert knowledge and long-standing lender relationships.
Bridging finance loans are short term finance to ‘bridge’ the gap until the main finance is available, such as a traditional mortgage or the property is sold, following say a renovation.
A bridging loan is multipurpose and has a variety of uses, with lending based on the property, the borrowers experience and plan for the property, it means lenders don’t tend to look at a customer’s income and credit profile.Â
What is a Bridging Loan?
Bridging finance loans are short term finance to ‘bridge’ the gap until the main finance is available, such as a traditional mortgage or the property is sold, following say a renovation. The purposes of a bridge can be:
A typical bridging loan usually runs for 12 months, we will need you to demonstrate your ability to repay the loan at this point. (i.e. sale of the property, re-mortgage to a traditional mortgage or other capital)
- Securing a new property before completing the sale of your existing one (Chain break)
- Auction Purchases
- Refurbishment to sell projects
- Un-Mortgageable properties (Structural issues, refurbishment, reconfiguration or change of use)
- Business purposes
Mortgage application process
4 simple steps for applying for a mortgage. See more about the mortgage application process here
Complete our
pre-qualify form
Let us know a few details about the mortgage you require
A mortgage specialist will call
One of our brokers will call and get a few more details of your requirements
We search for your perfect mortgage
We will search the market for the best rates for your circumstances
A Decision in Principle is made
We will secure a DIP with a lender, if you approve we move forward with a full application.
Whatever your mortgage goal, there will be something for you​
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- We do the application on your behalf
- Secure Online Portal for document upload
- We liaise with all parties on your behalf
- Helping you even where others have said no
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We specialise in helping people find a mortgage and remortgage.
We require your details only once and we’ll know the best lenders for your circumstance and give you the best rates.
What should I do next?
There are many ways to contact us
Enquire online – our simple online form takes just a few minutes.
Give us a Call – our qualified advisers will assess what you are looking and do all the hard work for you searching the market – 0330 232 0285.
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Bridging Loan FAQ
We have answered all your questions hopefully, but if there is anything you still need to know, please call us on 0330 232 0285
Bridging finance loans are short term finance to ‘bridge’ the gap until the main finance is available, such as a traditional mortgage or the property is sold, following say a renovation.
A bridging loan is multipurpose and has a variety of uses, with lending based on the property, the borrowers experience and plan for the property, it means lenders don’t tend to look at a customer’s income and credit profile. Although it’s important to note, if a new traditional mortgage is required at the end of the bridging term, that mortgage will be subject to full lender credit checks.
The nature of a bridging loan means you need speed and efficiency in any application made.
Once you have submitted an enquiry, we will get an initial decision to you within 24 hours and contact you at your earliest convenience to progress your application. Speak to us today
Bridging loans can be regulated or unregulated depending on the use of the property, unregulated bridging means it’s not governed by the Financial Conduct Authority (FCA). It’s always important that you are made aware of the full terms, all fees, charges and conditions of the loan, whether its regulated or not.
We have access to both regulated and unregulated bridging loans.
As an example, you may have found your dream home, but need to sell your current one before purchasing it. There could be lots of interest in the home that you want to buy. A bridging loan could allow you to buy the new property, before selling your current one. You would market your current property as normal and once it sold repaid the bridging loan. (note this normally needs to be within 12 months)Â
As a further example, bridging loans could be used when you are:
- looking to buy a property for investment purposes,
- such as a buy to let property,
- commercial property purchase
- or even a refurb and sell project.Â
This can provide the turn-around speed and flexibility to work within your requirements and timeframes.
In short, anyone can get a bridging loan. We will make sure the product is suitable for your needs and source the solution through specialist lenders.
We source bridging loan products for Limited companies, Individuals, Sole Traders, Partnerships and most others in-between. A bridging loan can be a brilliant solution to provide you with a short-term solution to achieve your goal.
Lenders will be looking at the following:
- The property you want to buy
- The amount you want to borrow against the properties value
- Your plan for the property
- Your experience, if you are looking to renovate and sell
- Your exit plan (how you will repay the loan within the 12 month term, such as a traditional mortgage, sale of property or other capital)
If your circumstances require alternative and more specialist finance, then a bridging loan could be exactly what you are looking for.
There are always considerations to be made before taking out a product which is why we can provide specialist services and insight to select the right product and to process an application quickly.
- Securing a property before completing the sale of your existing property
- Broken sale chains – bridging the gap between purchases
- Auction purchases – quick completion timescales
- Renovation – a traditional mortgage may not be available until the works are complete.
- Below market value – enabling you to possibly take advantage of the open market value of the property
- Un-mortgageable properties, for example if there’s no kitchen or bathroom
- Refurbishment projects to sell or let
- Change of use – if changing the purpose of a building
The bridge loan term can be anywhere from 1 month up to (usually) a maximum of 12 months. There is not usually a maximum loan amount, as they are assessed based on the proposed usage, exit method and criteria on a case by case basis.
A bridge loan can be arranged quickly which is why it is used when finance needs to be attained in a short time scale. The lender of the bridge loan will carry out their own checks to ensure the applicant meets the lending criteria.
Due to the nature of bridge loan lenders typically being smaller and more flexible, the time scales could be substantially shorter than a typical mortgage or loan product.
Due to the short-term nature of bridge finance, it will always be more expensive than a traditional mortgage or other standard lending product.
The trade-off is that the finance can be raised quickly on a wider range of situations and due to its short-term nature facilitates purchases, renovations or developments that allow other capital to be released elsewhere.
Some of the standard fees you would expect to pay as a part of any bridge loan deal would be;
A Lender’s arrangement fee
A fee is commonly charged by a lender for providing the loan facility and is typically two percent (2%) of the loan amount. In some instances, it can be rolled within the loan depending on client or lender requirements.
An Exit fee
This fee may be charged by the lender when the loan is repaid. When charged, it is usually around one month’s worth of interest regardless of whether the loan has run to its full term or was completed early.
A Surveyor’s fee
A fee will usually be payable to the firm hired to survey the property which is usually required as a part of the finance proposition process.
Legal fees
As with a standard mortgage, bridge finance must be processed with all the usual legal requirements stipulated by regulations. In some cases, lenders have in-house legal professionals which may apply these costs into the lender’s arrangement fees.
Finding any mortgage or bridging loan can feel challenging. While you don’t need to use a broker, if you do, it means you should benefit from a wealth of experience you won’t have. Clever Mortgages can guide you through the possibilities and see if it is possible to find a cheaper and more competitive remortgage offer today.
- Valuable knowledge, through years of experience helping customers
- Bad credit / poor credit experts
- Find the right mortgage first time
- Some mortgages are only available through a broker
- Help with the application process
- Advice on all options available, such as help to buy, guarantor or shared ownership
Below are some of the lenders we work with
Case Study
Customer story
Fast bridging finance when it’s needed most to save a £21,000 fee!
Clever Lending can provide short-term finance for almost any scenario, especially when not meeting a deadline would have cost £21,000.
We helped one customer to secure a £420,000 bridging loan in just 9 days!
After working closely with the lender and solicitor, the customer was able to pay off his existing bridge and save having to pay a 5% default fee.
We also achieved a monthly interest rate of 0.65%
