Bridging Loans in London

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    Bridging Loans in London

    Specialist Property Bridging Loans and Finance in London

    At Bridging Options, we help property developers and investors secure bridging finance to buy property and land in London. Our experienced bridging loans team is ready to connect you with high street and specialist lenders.

    As the UK’s financial capital, London’s market is teeming with choice when it comes to mortgages, commercial loans and bridging finance. It’s important to seek expert advice to find the right type of loan provider and product to meet your needs and help maximise your investment.

    To find fast, flexible and competitive bridging loans in London, contact Bridging Options today.

    Areas in London our Bridging Loan Brokers serve

    Our bridging loan brokers in London work with commercial and private residential projects across the capital. Simply call us on 0333 772 2606 or complete our website contact form for a quick call or email back. We can provide you with the advice you need to fund your venture.

    What is a bridging loan?

    A bridging loan (or bridge loan) is a form of short-term finance used to buy land or for a property purchase. Unlike a mortgage, bridging loans can be secured quickly, and there are no long and locked-in mortgage rates.

    Bridging loans have higher interest rates than mortgages because they are short-term loans. They are typically paid back within 12 months when the owner sells or refinances the property with a standard mortgage.

    Due to the short repayment terms and high interest rates, borrowers should carefully consider the risks and ensure they have a robust exit strategy. Consulting with our bridging loans expert advisor is recommended to weigh the costs and potential benefits, as well as finding the right lender.

    Open bridging loans London

    An open bridging loan provides temporary funding with no fixed repayment date. This is ideal if you’re unsure when your property sale will complete, for example. However, the advantage comes at a cost. Open bridging finance typically has higher interest rates because the lender has less certainty about the final repayment.

    Closed bridging loan London

    Closed bridging loans are more common than open bridging loans. You’ll need a confirmed repayment date, often tied to the sale of another property or the completion of a mortgage. This date is typically up to 12 months but can sometimes be up to three years. The benefit is that closed bridging loans come with lower interest rates compared to open loans. However, it’s crucial to have a robust exit strategy to avoid missing the payment deadline.

    Need bridging loan advice?

    Complete our website contact form to make an enquiry.

    How do you get a bridging loan in London?

    The experts at Bridging Options can connect you with our network of bridging loan specialists who have access to a wide range of specialist and high street lenders. From your initial enquiry right through to when you receive funds, our expert partners will be on hand to ensure your application is processed as smoothly and quickly as possible

    Before you make your initial enquiry, it’s a good idea to use our bridging finance calculator to get an idea of how much you can borrow.

    Who can get a bridging loan in London?

    Bridging finance in London is most commonly used by property investors, developers, and landlords looking to grow their property portfolios.

    Bridging loans are also used by homeowners seeking temporary finance to buy a new property before selling their current one. This can be helpful in a few situations, like acting quickly to secure a dream home or where there is a broken property chain.

    In order to qualify for bridging finance, you must have an existing home or some form of acceptable collateral, providing lenders with assurance should you default on the monthly payments.

    Lenders also insist on a solid exit strategy, i.e. your plan to repay the loan. This could be with the proceeds from the sale of the property or refinancing with a mortgage.

    Your chosen bridging lender will scrutinise your credit history, but if you have adverse credit, this is not an automatic denial. At Bridging Options, we can help you connect with lenders who specialise in bad credit bridging loans.

    Types of bridging finance available in London

    commercial bridging loan finance in London

    Commercial Finance

    These are ideal for investors purchasing commercial properties like offices, warehouses, or retail spaces. They can be used to purchase a new property before selling an existing one, cover refurbishment costs, or bridge the gap until securing long-term commercial financing.

    A large number of bridging loans filed and approved in London are for the purchase of commercial properties. Lenders typically state that 40% of the property in question is used for commercial business purposes.

    Learn more about Commercial Bridging Loans.

    residential bridging loans in London

    Residential Finance

    This option caters to homebuyers, landlords and investors buying residential properties. Perhaps you’ve found your dream home but haven’t sold your current one, or you need quick funding for renovations. A residential bridging loan can step in, providing temporary financing until you sell your existing property or secure a traditional mortgage.

    Learn more about Residential Bridging Loans.

    bridging loans for property development in London

    Development Finance

    Development finance is a short-term loan designed for property construction projects. It helps cover the initial costs associated with purchasing land, obtaining planning permission, and starting construction. Development bridging loans bridge the gap until you can secure long-term finance for the entire project.

    At Bridging Options, we can connect you with the right development finance loan officer within the London metropolitan area.

    Learn more about Development Bridging Loans.

    Advantages of using a bridging loan in London

    As a homebuyer, landlord, property investor or developer, bridging finance offers several advantages in the fast-paced London market:

    • Speed: Bridging loans can be approved and funded much faster than traditional residential, commercial and buy-to-let mortgages. This is essential to allow you to act quickly on property deals and to overcome short-term cash-flow problems.
    • Flexibility: Bridging loans offer more flexible terms than traditional mortgages, including open and closed options, catering to a wider range of scenarios.
    • Financing unmortgageable properties: Bridging loans can be used to finance properties that wouldn’t qualify for a standard high street mortgage, such as a non-standard construction or uninhabitable property.
    • Security of a sale: Open bridging loans can be helpful if you’re unsure of your property sale completion date. They provide temporary funding without a fixed repayment date, allowing you to secure a new property without your current sale falling through.
    • Unlocking equity: You can leverage existing properties to access capital through bridging loans. This can free up funds for further property acquisitions and portfolio expansion.

    Frequently asked questions about London bridging loans:

    Can bridging loans be used to refinance existing property development projects in London?

    Yes, bridging loans can be used to refinance existing property development projects in London. This can be helpful if you need additional funds to complete a project or release capital for other purposes.

    What is a typical rate for a London bridging loan?

    Bridging loan interest rates can vary depending on the loan amount, term, property value, and your individual circumstances. Expect the rate to be between 0.5% and 2% of the loan amount.

    How quickly can a London bridging loan be arranged?

    Bridging loans are known for their speed. Depending on the complexity of the situation, they can often be arranged in as little as five days in London and no longer than a few weeks.

    Do you have other questions? Contact Bridging Options today and speak to an experienced bridging loan specialist in London. We’re here to help you navigate the property finance landscape and find the best solution for your needs.

    mark piper bridging loan consultant
    Mark Piper

    I am the Senior Consultant at Bridging Options. I have extensive experience in leading successful sales teams at major UK insurers and founding a start-up mortgage brokerage, I bring expertise in residential and commercial property investments. Through strategic collaboration with industry leaders, I am committed to delivering exceptional service and empowering clients to achieve their property investment goals.

    Contact Mark

    Need Specialist Advice?

    Complete the form to arrange your initial free phone consultation with our bridging loan specialist:

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    COMMERCIAL LOANS

    Commercial bridging loans offer a short-term funding solution for businesses, landlords, property developers and land owners in the UK.

    RESIDENTIAL LOANS

    Residential bridging loans are a popular and useful form of property finance, but at Bridging Options, we appreciate that comparing different rates and terms can be complex and confusing.

    Development Loans

    Development finance offers short-term funding to those who need help with the purchasing and/or building costs of a construction project.

    Free Credit Check Report

    Check your credit history as reported to Equifax, Experian and TransUnion with CheckMyFile.

    Why choose Bridging Options for your bridging loan in London?

    London’s property market is fast-paced. Don’t let slow financing hold you back. Bridging Options is your one-stop shop for all your bridging finance needs in London. We can connect you with our network of bridging loan experts who can access thousands of deals from a wide range of lenders.

    Using Bridging Options offers significant advantages. Our expert partners have a deep understanding of the London bridging market and access to a wider range of lenders than you might find on your own. This increases your chances of securing the most competitive rates and terms for your specific needs.

    Our expertise also helps streamline the application process, saving you valuable time and effort navigating complex paperwork. Most importantly, our experts will act as your advocate, negotiating with lenders on your behalf to get the best possible deal. This is especially helpful in a fast-paced market like London, where securing the most favourable terms can make a big difference.

    Contact Bridging Options today for a free consultation.

    We want to help

    We only want the best for our clients, so we explain things in a way that is easy to digest and offer our support at every turn.

    We are the experts

    Our deep industry knowledge, and wide database of brokers and lenders allow us to provide unparalleled guidance and insights.

    We are honest and transparent

    Our commitment to integrity means clients can trust that our advice and recommendations are always in their best interest.
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    General Bridging Finance FAQs

    To learn more about bridging loans for your residential or commercial property needs, take a look at some of our most frequently asked questions below, or get in touch today:

    As with any fair investment company, and certainly with a mortgage, there are sets of criteria that must be met to secure bridge loans. Typically, you will need to have perfect exit strategies, adequate and steady income, a property that matches the value of the loan, and decent credit history.

     

    Being regulated protects you from any form of mis-selling and bad advice, amongst other things, and allows you to log complaints to the Financial Ombudsman Service.

    If, however, you take out a bridging loan that is secured on a property that you, your partner or a close family member do not live in, it is likely to be exempt from FCA regulations. This is often the case for buy to let properties.

    Just like a mortgage, you will also need proof of income to secure bridge finance. This is crucial to ensure you can make up for any deficiencies that may arise if the sale of a property falls through.

    The approval process is varied, but you can usually expect the process to complete within 1-3 weeks. The processing of your application is much shorter, and you will typically be connected to a lender within 24-48 hours.

    The usual length of these loans is 12 months, but the time allotted before payback of the loan can range as high as three years. There are also some forms of bridging that can last for only a few months. But one year is certainly the industry standard based on a typical residential type of bridging.

    Yes, you must have some form of acceptable collateral in order to qualify for bridging loans. This is almost always a house that you are placing for sale, but depending on the type of loan you are seeking, this could also come in the form of expensive items like jewellery, vehicles, or something of great value that the lender is willing to accept. You can use a bridging loan calculator to calculate exactly how much you can expect to receive based on the value of your property or the miscellaneous item in question, but it would be worth speaking to a lender first to get approval.