Bridging Mortgage Loans
Quick Bridging Loans for high speed transactions (7 to 21 days)
Bridging loans borrowers need bridging loans fast. If you need funds quickly to complete on a purchase, continue a project, or pay off a creditor, call our team.
Large lenders such as Halifax, Barclays, and NatWest do not provide mortgage bridging loans.
You need to use a specialist lender via a specialist bridging loan independent mortgage broker like ourselves.
Find out more about bridging loans
- What is a mortgage bridging loan?
- How much does a bridging loan cost?
- Bridging Loans and Bad Credit History
- High Speed Bridging Loans
- Expat Bridging Loans
Competitive bridging loans are available within 7 days for:
- Property chain breaking
- Auction finance
- Fast mortgage approval
- Buy another house before sale
- Property not suitable for mortgage
- Funds needed for tax bill
- Funds needed for business
Your Bridging Loan Mortgage Questions
What is a mortgage bridging loan?
A bridging loan is lending secured on property that is designed to be offered quickly, and typically repaid within 12 months.
How does a bridging loan work?
A bridging loan works by providing short-term lending that is secured on one or more properties. Since the bridging provider only concerns themselves with the value of the security and the borrower’s intentions to repay the lending, they are quick to set up, and do not rely on issues around credit ratings or affordability to be offered.
Is a bridging loan a good idea?
A bridging loan is a good idea if you need funds quickly to complete a property purchase. However, given the relatively high cost of bridging loans, it is important that you will be getting the value from the purchase to compensate for that cost.
Are mortgage bridging loans dangerous?
Bridging loans can be dangerous in the sense that if you struggle to find a way to repay, the lending can get very expensive. Bridging loans are typically repaid through sale or remortgage and this is why bridging lenders like to ensure that your ‘exit route’ from the borrowing is practical.
How much does a bridging loan cost in the UK?
The cost of your bridging loan will vary based on the amount and type of security available, other lending in place, and your intention for the funds.
There is usually a set up fee which may be around 2% of the loan. Interest is then charged monthly at around 0.49% (6% per annum) for lower risk deals up to 1.50% for high risk/high loan to value, deals.
It is important to note that no payments need to be made on most bridging loans until the loan is repaid.
Is it easy to get a mortgage bridging loan?
Yes, it is relatively easy to get a mortgage bridging loan, provided security property is suitable for the lender values up, and your exit strategy for the borrowing is practical and realistic.
Is there an alternative to a bridging loan mortgage?
There is no alternative to a bridging loan mortgage if you cannot raise funds any other way. Bridging loans are designed for situations where other funding is not available and hence, they are more expensive than standard mortgage bank loans. They are best used when the value achieved from borrowing the funds easily exceeds the cost of the funding.
Bridging loan mortgage cost Example
A £100,000 loan held for six months with a 2% facility fee and charged at 0.59% per month will gross to £105,664 on settlement. In this example the borrower will receive £100,000 and repay £105,664 six months later.
Total cost 5.6% of borrowing.
There will also be valuation, legal, and broker costs to pay at outset
Mortgage bridging loans with bad credit history?
Mortgage bridging loans rely on having a good level of security and suitable exit plans rather than means to make payments. Therefore an applicant with bad credit history can still be considered.
Speed of bridging loans
Bridging loans are designed to be offered quickly and a formal bridging offer is usually produced within 5 to 21 days.
Are bridging loans available for expats
Yes, bridging loans for expats are available secured on UK property.
What is involved in obtaining a bridging mortgage loan?
One of our Team will help you throughout the process, we need to establish:
- How much you need to borrow
- Why you need the funds
- How long you need the funds for
- What you can offer as security
- How you intend to settle the loan (exit)
Once we have that information we can advise you on the terms available to you. When you wish to proceed we will gather the information required to submit an application.
This will include:
- Identification and proof of income where appropriate
- Details of intended security properties
- Details of Solicitors to be used
When we submit your application the Lender will assess your case, run a credit score and provide an offer in principle. This will usually be completed within 6 working hours.
To proceed to formal offer the Lender needs to:
- Arrange a valuation on your intended security
- Confirm with any existing lenders that the property(ies) can be used as security
For higher loan to value cases a valuer will be sent out to the property. For lower loan to value cases (sub 50% LTV) valuations can often be done automatically.
As soon as satisfactory valuations are in and security confirmed, formal offer can be issued. Once you have accepted your Offer, the funds are ready for your Solicitor to access.
Common uses for Bridging Mortgage Loans
Property chain breaking
Our clients were seeking to move out of London as part of their retirement plans. They were caught in a chain where their buyer’s buyer had pulled out putting both sale and purchase at risk.
We were able to raise funds allowing our Clients to purchase and giving time for their buyer to re-position themselves to complete on the original home.
Our client was seeking to buy a property at auction to refurbish and later let. Although he had a good deal of equity in his home he was short on cash.
We arranged a mortgage bridging loan quickly for him to complete his auction purchase and refurbish the property. After refurbishment, the lending was rolled onto a standard buy to let mortgage product as a permanent solution.
Fast mortgage approval
Our client was seeking to buy out his brother from a property they owned jointly. His brother wanted the funds immediately. We were able to raise the lending in five working days.
Buy another house before selling your existing one
Our client noticed whilst out walking that a property had become available in a highly sought after local street. She was keen to put an offer in immediately but had not yet put her current property up for sale. We arranged a mortgage bridging loan quickly to enable her to complete her purchase .
Although the intention originally was to sell her former home, in the end she decided to let and we arranged a buy to let mortgage which settled the loan on her new home.
Property not suitable for mortgage
Our client saw a property for sale that he considered to be ideal as his permanent family home. Having been untouched for close to 50 years there were numerous issues with the property which meant that mainstream mortgage lenders considered it un-mortgageable. Our client, as a builder, knew what it would take to refurbish the property and wanted to do this before selling his current home.
We arranged the a mortgage bridging loan to purchase and refurbish the new property which the client later settled from his sale.
Funds needed for tax bill
Due to issues caused by her Accountant our client found herself under pressure to settle a five figure tax bill with HMRC. She was given a 14 day window to settle her account. We arrange funds within the 14 days.
Funds needed for business
Our client had been running a business for a number of years when he became aware of the retirement of a major competitor. By the time our client arrived on the scene his competitor already had a buyer lined up for his business. Following discussions our client was promised he could buy the business at a lower price provided he could access funds swiftly.
Using his home as security our client was able to raise £165,000 in a little over two weeks to complete the purchase.
What is a mortgage Bridging loan?
Mortgage bridging Loans are short term lending products designed to:
- Provide cash quickly
- Bridge ‘the gap’ until permanent funds can be put in place
- Be available regardless of issues like affordability, property condition, and credit score
To get a Mortgage Bridging Loan you need:
- Suitable security across one or more properties
- A method of repaying the loan (exiting)
Mortgage Bridging loans are ideal where:
- You are buying at auction and need to bridge until you get permanent lending
- You need to make a purchase but sale funds are delayed
- A property needs refurbishment
- A loan is needed as a property is being developed
- Expected cash funds are not yet available
- Loan funds are needed swiftly
Our team can identify a suitable Bridging Loan and get you a quick lending decision within 24 hours
Mortgage bridging loans – FAQ’s
Can I use my property as security for bridging even if it has a mortgage on it?
Yes, bridge lending is available with other mortgages in place
Are bridging rates expensive?
No, costs have reduced considerably and rates are now available from 0.49% per month.
How much can I borrow on a mortgage bridging loan?
Bridging mortgages are possible to 80% loan to value and lending to 100% of your purchase price and purchase costs is possible with extra security.
Can I use any property as security for bridging?
Yes, mortgage bridging loans are available on most types of property and land.
Is bridging suitable for my property development
Yes, bridging is available for both minor and major refurbishment and conversions.
I have a poor credit history?
No problem, adverse credit can be managed in the mortgage bridging loans market.
Is my age a problem?
No problem, there are no age limits.
I am not a UK National?
That’s fine, Foreign nationals not a problem.
I no longer live in the UK
No problem, Expats are suitable borrowers for bridging loans.