A bridging loan is a type of short term loan that is used to bridge the gap if you want to purchase a new home before selling your old home. It is a property backed finance and is usually offered for a period of 1 to 18 months. In bridging loans you have to repay the full amount at the end of the loan term. The application process is simple and quick and the loan is usually approved in less time than a traditional mortgage. However, bridging loans are expensive and offer a high interest rate so you must keep this in mind before taking a bridging loan.
Bridging loans are also known as gap finance or swing loans are fast to arrange and allow you to take advantage of an opportunity by providing you instant cash. Having a mortgage or other traditional loans is a lengthy process and it takes months to get approval.
Bridging loans companies are often used to purchase a new home when you are waiting for the sale of your current property. However, it can be used for:
When you borrow money through a bridging loan a charge is placed at your property. And if you fail to repay this legal agreement is used to decide which lender will be repaid first. If you already have a mortgage on your property, the bridging loan will be second charge. When your property is sold the amount is first paid to the mortgage lender and then to the bridging loan lender.
On the other hand when you do not have any mortgage you can have a first charge bridging loan. In this case if you default the bridging loan will be repaid first. You can borrow more with the first charge bridging loan as compared to the second charge bridging loan.
A bridge loan is a type of short term loan that is used to bridge the gap if you want to purchase a new home before selling your old home. It is a property backed finance and is usually offered for a period of 1 to 18 months. In bridingding loans you have to repay the full amount at the end of the loan term. The application process is simple and quick and the loan is usually approved in less time than a traditional mortgage. However, bridging loans are expensive offering a high interest rate so you must keep this in mind before taking a bridging loan.
There are many bridging loan providers in the UK but it is essential to select one that offers you best rates and follow best lending practices. To help you we are providing information about the UK’s top bridging loan providers.
Kuflink was launched in 2011 as a bridging loan provider to property investors. With time the company has become a leading peer to peer lending and IFISA provider. What makes them stand out is their consistency. All their loans are secured against UK properties. They have no track record of default borrowers. Their interest rate never changes, that never goes down or up. This way you get what you are offered. The company has great customer service and treats their investors with utmost priority.
Kuflink offers bridging loans for commercial, semi-commercial, residential and auction purposes. You can borrow up to £3m and the loan term starts from 3 months.
The United Trust Bank was established in 1955. It is an established lender providing a wide range of secured funding facilities for individuals and businesses. It offers its products through a network of borrowers. These products include professional loan, bridging loans and asset finance. It is regulated by the Financial Conduct Authority and Prudential regulation Authority. The United Trust Bank offers bridging loans ranging from £75k to £15m+. The loan is secured against residential and mixed use property
Mint Property Finance is providing bridging loans over 10 years. Their loans are designed to bridge the gap between short term financial limitations and long term success. It offers five different loan products named as bridging , light and medium. The loan size varies from £75,000 to 2, 500,000 with an interest rate ranging from 0.65% to 0.70%. The loan term is up to 24months for all loan products.
Pivot was established in 2012 as a London-based property development business. By experiencing the challenges of raising finance Pivot was launched with a mission to make the borrowing process as easy as possible. It offers short term loans secured against residential properties and also provides loans for refurbishment purposes. The loan size varies from £150,000 to £5,000,000. You can repay the loan within a period of 3 months to 15 months.
Octane capital is relatively a new name to the name of Uk’s financial lenders and was launched in 2017. It is providing bridging, buy to let, developer exit and refurbishment loans. It offers flexible loans that meet your requirements. You can take a loan ranging from £200,000 up to £25,000,000 for up to 24 months. Highly expert team of octane capital takes pride in getting to know the individual requirements of every borrower so that they can provide them with a product that suits them.
Bridging link is a trusted UK lender providing bridging loans to help a project keep moving. It has an expert team that has over 4o years of experience of providing loans to individuals and corporate businesses. The process of application is simple and quick. Once your loan is approved you can get access to cash within the shortest possible time. It offers bridging loans from £50,000 to £500,000 and they lend up to 60% loan to value. Bridging link offers fees and interest cost that is very competitive.
MT Finance is a leading property finance lender, specialises in auction finance and bridging finance. This company was set up in 2008 and from that time it is assisting individuals, business owners and property professionals with their financial requirements. It is an asset based lender so it does not judge loan application on credit history. You can take a bridging loan ranging from £50,000 to £10,000,000 for a period of 1-24 months.
Hope Capital is a specialist bridging loan provider. It has a reputation for finding a financial solution for you in a record quick time, when other providers can not do so. They provide a loan with a clear exit route no matter how unusual or tricky a situation you have. It offers a range of loan products so that customers can take one that suits them the best. Bridging loans from £50,000 to £5,00,000 for a period of up to 18 months are available on Hope Capital.
It is one of the UK’s independent bridging finance providers, it provides a wide range of flexible and fast bridging loans. MFS offers loans to private individuals and on a commercial basis based on the requirements of clients. It offers short term asset backed loans with a specific focus to support those seeking to expand their property portfolio. You can take a loan ranging from £100,000 to £10million for three months to 18 months. They cover both residential and commercial properties and the interest rate varies with your requirements.
LendInvest is a property finance company established in 2008. It has been working for more than 12 years with an aim of making property finance simple and easy. It has a wide range of products from buy to let mortgages to bridging loans. You can apply for a loan directly or through a broker. You can take a loan ranging from £7,50,000 to £15 million with a maximum loan to value 75%. The interest rate varies from 0.55 to 7.98%.