Bridging Loan FAQs
Our expert team are here to answer all of your bridging loan queries, and with access to a panel of over 400 lenders, we can arrange the right facility for almost any scenario.
Everything you need to know about bridging finance
Here are the most frequently asked bridging loan questions and their answers. As a specialist broker with access to a 400+ lender panel, we cover what bridging loans are, how they work and why you might want to consider them.
A short term, property backed loan used when a conventional mortgage is not appropriate or is not available within the required timescales.
Typical examples of use include buying at auction, carrying out refurbishments to property, dealing with a change in title and or a planning application.
Most loan periods will range between three and twelve months, though some lenders on our panel offer terms of up to 24 months depending on your case strength.
The interest can either be serviced monthly, or the interest rolled up meaning no monthly repayment and full repayment is made at the end.
This is the method in which the loan will be paid off at the end of the term, normally through a sale or refinance arrangement.
Loans from lenders on our panel generally begin at £100,000, but there is no maximum. What is available depends upon the asset, loan to value and exit route.
Lenders on our panel can issue offers within 24 hours, with funds in as little as 48 hours, though most deals we arrange typically complete within 3-4 weeks.
Individuals, companies, LLPs, trusts and overseas entities.
Some do, others do not. If you have poor credit, non-status lenders are available on our panel.
Yes, and with a panel of more than 400 lenders we can also arrange finance across parts of Western Europe.
Yes, we arrange this through specialist lenders on our panel.
No, not if your exit strategy is to remortgage your existing loan. If your exit strategy is to sell, no mortgage DIP/AIP is required.
Property details, borrower details, valuation details, works program, credit history and exit strategy.
OMV is the open market value of a property; 180 day value is what a property would sell for on the assumption it needs to sell in less than 6 months (which many lenders factor into the risk calculation).
Yes. Some lenders on our panel will advance on OMV, which works well with auctions or distressed property sales.
Yes. We can arrange bridging loans in days to ensure you meet the 28 day purchase deadline of the auction.
Yes. Personal income will usually not be the deciding factor as interest can be rolled up.
Typically none although a minimum term and sometimes an exit fee can apply.
Yes. Sometimes any unsatisfied CCJs may have to be settled by the borrower.
Yes, we can arrange this for LTD Co, LLP, offshore structures and SIPPs.
Yes once the minimum terms are satisfied. Retained interest that has not been used to fund the loan is refunded.
Generally around 30%, however purchasing under value will lower this requirement, and some lenders on our panel can offer 100% funding in certain circumstances.
Certain lenders do require experience at higher LTVs, however most lenders on our panel are able to help a first time investor.
A first charge is a primary security; a second charge may be added to the property if adequate equity exists.