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  • Rates from 1% to 1.5% per month
  • Up to 70% Loan to Value
  • Minimum loan £100K, max £5 million
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Bridging Loans

Michelle Monck

Michelle Monck

Consumer Finance Expert

At a glance

Bridging loans help you to buy a property, while you are waiting for proceeds from the sale of a current property you own. 

They are a form of mortgage that is secured on the property you are purchasing.

They can be quicker to apply for than commercial mortgages

 

How do bridging loans differ from commercial mortgages?

Bridging finance differs slightly from a commercial mortgage in two key ways:

  • Shorter term
  • Bridging loans are meant only to ‘bridge’ the gap between you selling a property, or securing longer term finance once a project is completed. Therefore, they will typically only allow a maximum duration of 6-12 months before the money has to be repaid.
  • Quicker application process

Bridging loans can have a far quicker application process than a commercial mortgage – allowing you to take advantage of a property bargain.

Despite these key differences you should be aware that a bridging loan is still a mortgage in that it is secured on the property you are purchasing. That means that if you fail to keep up repayments on a bridging loan – the property could be repossessed. 

The repossession process for a bridging loan can be much swifter than repossession on a regular commercial mortgage.

You should also note that bridging finance costs roughly the same amount to arrange as a commercial mortgage – and the finance you are receiving is going to be for a far shorter term. So only consider bridging if you will be unable to secure a commercial mortgage, or you expect to only need finance for a relatively short initial term (while you renovate a property to sell for instance).

At a glance

Bridging loans help you to buy a property, while you are waiting for proceeds from the sale of a current property you own. 

They are a form of mortgage that is secured on the property you are purchasing.

They can be quicker to apply for than commercial mortgages

 

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