Bridging finance is a strictly short-term facility used to ‘bridge’ temporary financial gaps and fund time-critical purchases or investments.
A bridge loan can be organised within a few working days, and the loan is repaid as a single lump-sum payment after one to 18 months. Increasingly, property developers are turning to bridging loans as a flexible, accessible, and affordable alternative to traditional loans and commercial mortgages.
For more information or to discuss the potential benefits of property development bridging loans in more detail, contact a member of the team today.
Eligibility for property development Bridging finance is typically established on the basis of two things:
- Availability of security (collateral) to cover the total costs of the loan.
- Evidence of a workable exit strategy for repayment of the facility.
Bridging finance is a more flexible and accessible facility than traditional development finance and is therefore open to new developers with no provable experience or track record.
Total borrowing costs vary from one product and lender to the next, which in all instances is always negotiable.
Examples of this may include administration fees, arrangement fees, completion fees, valuation fees, legal fees, security fees, early repayment fees, and so on.
If you present a convincing application complete with all required evidence and supplementary documentation, your bridging loan could be authorised and transferred into your account within a few working days.
Yes, property development Bridging finance is open to applicants with imperfect credit. Your application will be assessed on the basis of its all-round merit, not the usual ‘binary’ exclusion factors like credit scores.
If you have any questions or concerns regarding your credit score or your eligibility for bridging finance, raise them with your broker before your application is submitted.
Most lenders offer financing of up to 80% of the combined value of the asset(s) being used as collateral. If the assessed worth of your collateral is £300,000, you may be eligible to secure a bridging loan of up to £240,000.
There are no specific upper limits on how much can be accessed with property development bridging finance—anything from £50,000 to more than £10 million.
Whether you are planning ahead or in need of support with an urgent bridging loan application, we can help.
Our experienced team will negotiate on your behalf to ensure you get an unbeatable deal from a top-rated lender. We will also guide you through the alternative options available, should bridging finance prove unsuitable for your requirements.