What is a bridging loan?

Bridging loans are a great solution when property investors are looking to raise finance, they usually run from 6-18 months and provide a fast and flexible form of funding that enables investors to source short – term finance. Bridging finance is available to individuals, partnerships & UK limited companies.

Bridging finance is usually available for up to 75% loan to value and has variable rates, application fees, administration fees and broker fees. Unlike a traditional bank loan for mortgage, the monthly interest is often rolled into the loan, so there are no repayments to make during the term of the loan.

Borrowing can be available as either first or second charge on a property, lending on residential properties, commercial & semi commercial properties, and land with planning permission.

Bridging finance can also provide a source of working capital for businesses and property investors. This capital could be used for a range of purposes, including property improvements, expansion plans, equity for a property purchase, investing in equipment or even paying a business tax bill.