Guide to Bridging Loans

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By cutting out the middleman, these types of peer-to-peer business loans can often be achieved at a cheaper rate.

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Why choose a Guide to Bridging Loans

See if this is the right business loan for you

  • Unsecured business loans of up to £250,000 for terms up to five years are available
  • Secured business loans of up to several million are subject to asset quality, credit checks and LTV
  • You must be an established business, usually with two years trading history
  • The business must have clean credit, no CCJs or recent defaults

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Frequently Asked Questions

Frequently Asked Questions

What is the most import an thing to consider when being approved for a Bridging Loan?    

Your exit. The first thing lenders will want to know is how you intend to repay the loan and how credible that plan is

How much can I get?    

There is no maximum nominal amount but it depends on the LTV (loan to value). For a 1st charge we can get up to 75% LTV and for a 2nd charge up to 65% LTV; all depending on the nature and location of the property/asset being offered as security.

How long can I have a Bridging Loan for?    

Most bridging loans are short-term, typically 1 to 12 months, but some lenders may offer terms up to 18 or even 24 months depending on your project and exit plan. You would need to have a strong reason to borrow on a bridging loan for longer than 12 months, as heavy development is more suited to development projects.

Can I get one on an unmortgageable property?    

Yes, that’s exactly what Bridging Finance is designed for. You can use the loan to bring the property up to mortgageable condition, then refinance with long-term funding once the issues preventing a standard mortgage have been resolved.

How fast can it be arranged?    

It can be done in 48 hours but at a cost, so we would usually advise 1–4 weeks, depending on the deal and your solicitor’s readiness. Some lenders may take a little longer, so it’s important you express any hard deadlines with your chosen lender to ensure they have the capabilities to get this over the line.

Can I get one if I have adverse credit?    

Yes, bridging lenders focus more on the asset and exit strategy than your credit score. While poor credit may affect the terms or interest rate, it doesn’t automatically disqualify you.

What will the cost be?    

Interest is expressed monthly and is from 0.6%-1.5% per month. Lower rates are for loans with a low LTV, on a property/asset that can be easily resold in the event of foreclosure, a strong-credit borrower and a clear exit.

What are the fees to arrange a loan?    

If you choose to use us to arrange your finance you will be charged a fee of typically 1%. Additionally there may be a lender fee (usually 1-2%) to be paid and it is usual in this market that the borrower also pays the lender’s legal and valuation fees.

Why should I use a broker to arrange a Bridging Loan?    

You can do all this yourself but with 100+ lenders out there, we can more quickly get you to the best rate and also ensure you are borrowing from a reputable, established lender. We will also guide you through the application process and ensure your application is presented to the lender in a manner than makes it most likely to be accepted at the lowest rate.

What is the maximum LTV available for a second charge bridging loan?    

Probably no more than 70% LTV is available but it depends on the asset and the exit strategy

Can I use it for non-property purposes?    

In some cases, yes - such as urgent working capital needs - but you’ll still need a strong repayment plan.

What types of properties can be funded?    

Residential, commercial, mixed-use, or land with planning.

Can I get a bridging loan if I have poor credit?    

Yes, bridging lenders focus more on the asset and exit strategy than your credit score. While poor credit may affect the terms or interest rate, it doesn’t automatically disqualify you.

Do I need to make monthly repayments?    

Not always. Many bridging loans are "rolled up", meaning interest is added to the loan and repaid at the end, along with the capital, or “retained”, meaning deducted from the gross loan. Both of these options can help cashflow during the loan term.

Can I get 100% bridging finance?    

In some cases, yes—if you have additional security (like another property) to offer. Most lenders will provide up to 70–75% of the property’s value, but 100% is possible with sufficient collateral.

By cutting out the middleman, these types of peer-to-peer business loans can often be achieved at a cheaper rate. To qualify for crowdfunding, your business must be profitable and prove you are able to make repayments.

Crowdfunders look at historical data and won't lend against projections.

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