Compare Bridging Loans

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Saved for our customers through our Deal Optimiser service.*

Calculate the cost of a bridging loan by telling us how much you need to borrow in the fields below. Give us some additional information within our Deal Optimiser on the next page to allow us to negotiate the rate on your behalf.

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What is a bridging loan?

A bridging loan is a useful finance if you are in a position where you need to raise capital quickly. It’s a short term loan, usually held for 18 months or less that bridges the gap between selling your home and buying a new one.

What is a bridging loan used for?

Our clients usually come to us to source bridging finance when they need access to property finance more quickly than a standard mortgage can provide.

  • You’re buying a property and the buyer of your existing home has pulled out or the chain has broken
  • You’ve found a great deal or a rare opportunity and you want to close quickly
  • You’re buying a property at auction and need to pay for it within the 28 day deadline.

How does a bridging loan work?

You’ll borrow the money you need to fund your purchase for 6, 12, 18 months. You’ll need to ensure you have a viable exit plan to be able to repay the loan. This is usually the sale of your current property.

The loan is secured against the new property, so if you fail to repay the lender could repossess the house.

How much can I borrow with a bridging loan?

Our lenders offer loans from £500,000 to £15 million. The amount your eligible for will depend on the value of the assets you already hold and your income.

You’ll only be able to borrow a maximum LTV (loan-to-value) of 75% of the value of the property.

How much does bridging finance cost?

Because it’s a short term loan, a bridging loan interest rate is typically higher than you’d find on a standard residential mortgage. The rate is a monthly one rather than an annual loan and range from 0.45% to 1.5% depending on the lender.

There are usually additional costs to consider, including a product fee and an exit fee if you are able to close the loan facility early. Despite this, it usually works out cheaper to exit the loan earlier as you avoid accumulating more interest.

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ALL PRODUCTS DISPLAYED ON THIS SITE ARE FOR UNREGULATED PRODUCTS ONLY. SHOULD YOU REQUIRE A REGULATED LOAN PLEASE CONTACT US. AS A MORTGAGE IS SECURED AGAINST YOUR PROPERTY IT COULD BE REPOSSESSED IF YOU DO NOT KEEP UP THE MORTGAGE REPAYMENTS.
COMMERCIAL MORTGAGES AND SOME FORMS OF BRIDGING, DEVELOPMENT AND BUY TO LET FINANCE ARE NOT REGULATED BY THE FINANCIAL CONDUCT AUTHORITY.

* Total savings achieved since November 2020 based on annualised interest rate saving where deal optimiser service negotiated a lower rate than lender’s published rate.