Why choose us for bridging finance?
- Best bridging loan rates
- Expert advice
- Fast approval
- Instant quotes
- Rated excellent on Trustpilot!
- Open 7 days till late
How do I get a quote?
← Fill in the form and we will call you back.
← We usually respond within minutes.
Competitive Bridging Finance in London
Bridging finance is a short-term loan, typically lasting from 1 to 18 months, designed to “bridge” a financial gap. In London’s fast-paced property market, these loans are secured against residential or commercial property and are ideal for time-sensitive transactions. They offer flexibility and speed, often completing within days, unlike traditional mortgages which can take weeks or months.
Bridging loans can be regulated (for properties you live in) or unregulated (for investment properties or commercial use), with the Financial Conduct Authority (FCA) overseeing regulated loans to ensure borrower protection. Loans are typically offered up to 75% of the property’s loan-to-value (LTV) ratio, though higher LTVs may be possible with additional collateral.
Common uses of bridging finance in London
- Property purchases: Secure a new home or investment property before selling your current one, avoiding delays in property chains.
- Auction finance: Act quickly to buy properties at auction, where funds are often needed within tight deadlines (e.g., 28 days).
- Refurbishments: Fund renovations to increase a property’s value before selling or refinancing onto a long-term mortgage.
- Development projects: Finance construction or conversion projects, such as turning offices into flats.
- Cash flow solutions: Cover short-term business expenses or bridge gaps while awaiting other funding.
London’s competitive property market, with high demand and rising prices, makes bridging finance a popular choice for investors, developers, and homeowners needing swift funding.
Costs of bridging finance
Bridging loans typically have higher interest rates than standard mortgages due to their short-term nature and higher risk. Monthly interest rates in London range from 0.55% to 2%, depending on the lender, LTV, and borrower profile. Key costs include:
- Arrangement fees: Usually 2% of the loan amount, paid up front.
- Interest payments: Paid monthly or rolled up and settled at the end of the term.
- Exit fees: Some lenders might have a minimum interest period, though many offer no exit fees.
- Valuation and legal fees: Required to assess the property and finalise the loan agreement.
Working with a specialist broker can help you compare lenders and secure competitive rates tailored to your needs. Always ensure you have a clear exit strategy, such as selling a property or refinancing, to repay the loan and avoid default.
How to apply for a bridging loan
At BridgingLoans.co.uk, we make securing a bridging loan in London fast, straightforward, and tailored to your needs. Our expert team guides you through every step, ensuring you get the best rates and terms from our extensive network of over 250 lenders. Here’s how we help:
- Expert broker support: Our whole-of-market brokers compare deals from over 250 trusted lenders, finding competitive rates and flexible terms that suit your financial situation.
- Streamlined documentation: We assist you in preparing and submitting financial details, property information, and a clear exit strategy, making the process efficient and stress-free.
- Fast property valuations: We work with lenders who offer independent or automated valuations to quickly determine your loan-to-value (LTV) ratio and maximise your borrowing potential.
- Rapid loan approval: With our industry connections, we secure lender decisions within hours, with funds available in as little as 3-14 days to meet your urgent needs.
- Expert legal guidance: We connect you with solicitors experienced in bridging loans to ensure compliance with UK regulations, and some lenders offer dual legal representation to speed things up.
We provide loans from £20,000, depending on your property’s value and lender criteria. Whether you’re buying at auction, funding a refurbishment, or bridging a property chain, we simplify the process and deliver bespoke solutions.
We provide finance across the UK:
