BRIDGING LOANS

You can apply for a bridging loan by simply completing our online application form and one of our sales representatives shall be in touch with you.

Alternatively, you can read our criteria guide on bridging loans to give you an idea on our best bridging rates and costs available. Please note that rates are subject to location and underwriting.

We are always happy to provide further information – contact us today on 121 348 7830 or at info@bigpropertyfinance.co.uk

A bridging loan is a form of short-term lending, secured against a property. Bridging finance can support cashflow before a more long-term arrangement can be made. Bridging loans are often seen as ‘bridging the gap’ between property purchases, if a chain collapses during a property transaction, however, are also very common in cases of property investment and development. Typically, a property owner can raise up to 75% loan-to-value to bridge the capital shortfall and loans can be placed as quickly as 48 hours.

A significant difference between a mortgage versus a bridging loan, is the term in which it runs for. Whilst many mortgages will now run for up to 35 or 40 years, bridging loans only have a term of circa 1 to 18 months and are therefore intended to be a temporary form of finance.

BiG Property Finance doesn’t have any hidden exit fees, unlike many lenders; however, we would advise you to think carefully about your exit strategy. This might, for example, involve getting a term mortgage or a buy-to-let mortgage, or selling the property altogether. Check out our guide on what is a bridging loan and how they work.

A bridging loan can be useful to raise capital for any legal purpose, however, at BIG we can only offer funds for business or investment purposes. We are unable to support the purchase/refinance of a main residence or facilitate personal debt consolidation. Some common circumstances in which a borrower may obtain a bridging loan are as follows:

• Buying to let
  • Auction property purchases
  • Development or refurbishment to get a property to acceptable condition to mortgage
  • Houses of multiple occupancy (HMO)
  • Borrow against value rather than purchase price
  • Raising debt secured against two or more properties with equity.

More recently, there has been a growing trend among borrowers to use a bridging loan because high street and private banks are taking longer to process applications for larger residential loans.

Check out our full guide to bridging loan eligibility criteria here.

Residential Bridging Loans (1st charge)

• Maximum 1st Charge Loan — Up to 75% LTV
• Minimum loan size – £50,000
• Minimum term — 1 month
• Maximum term — 18 months. (6-month extension may be available upon application.)
• Interest Rate from 0.95% per calendar month

Commercial Bridging Loans

• Maximum 1st Charge Loan Only — 65% LTV
• Minimum loan size – £50,000
• Minimum term — 1 month
• Maximum term — 18 months. Extensions may be agreed in certain circumstances
• Interest Rate from 1.00% per calendar month

At BiG we want to provide all our clients with a positive experience and quality service. Therefore, we like to work with investors and experienced individuals who fully understand the risks and responsibilities of obtaining a bridging loan.

BiG Property Finance will consider any business or individual that is an exisitng property owner. We are unable to support the purchase/refinance of a main residence or facilitate personal debt consolidation. We can, however, provide a quick decision and expedite a loan completion as we don’t carry out time consuming credit checks.

We are always happy to provide further information – contact us today on 121 348 7830 or at info@bigpropertyfinance.co.uk

Check out our guide to bridging loan eligibility here.

Bridging finance is generally more expensive than a conventional term mortgage, as you pay for the speed and convenience. You also need to consider legal fees, valuation costs and potentially broker fees, arrangement fees or exit fees. Added fees and extra costs can be a feature of many forms of lending, but at BIG we are always transparent upfront on what is payable.

It may not be as expensive as you think; see more information about bridging loan rates and costs.

Bridging loan funds have been paid out by BiG Property Finance in a matter of days, whilst a high street lender would normally finalise a mortgage in 6 weeks at the fastest, with most property transactions averaging 3 months.

The average time from us providing loan terms to our borrower receiving monies is 3 weeks. However, we can normally accommodate whatever timescale you require.