Bridging Finance

Bridging finance is probably best known as a ‘fast’ loan to finance a project quickly. However, there are many different reasons why a bridging loan may be the most appropriate way to gather funds. For example, where a property is uninhabitable in its current state and needs refurbishment, or where a Bridging Loansproperty has a defective title. And since main stream lending criteria has tightened, the requirement to take bridging finance has increased.

Obtaining a decision to lend from a bridging loan provider will depend on a variety of factors. One thing that is different from other finance options is the fact that the bridging finance company will need to understand a clearly defined exit route – in other words, the way in which the loan will be repaid. The exit route will of course vary from project to project, the most usual is either re-finance on to a longer-term loan or sale of the property.

It is possible to either service the interest with monthly payments or for the interest to be ‘rolled up’, this is where the loan includes the interest for the full period up front and therefore no monthly payments need to be made.

At Harvey Bowes, we have direct access to a wide range of bridging funders along with the experience to present an application professionally. Many brokers use a ‘Master Broker’ or ‘Packager’ to access bridging finance companies, however, this is not always the most cost-effective or timely route. If you are looking for advice on a bridging loan, talk to the team at Harvey Bowes today, we are deal makes as well as finance brokers. Call us on 02921754150 or email with your enquiry.

Some of the reasons why a bridging loan may be the best answer:

  • Save property repossession

  • Pay an unexpected bill, such as a tax bill

  • Finance a property that is not currently habitable

  • Finance a property that has a defective or complicated title

  • Finance a property where change of use is required, for example from a Guest House to a HMO licenced property

  • To use property as security for a business loan

Bridging Loans are a short-term answer, so the way in which the loan is going to be repaid needs to be clearly understood right from the outset. If you have not planned this far, that’s fine, talk to us about the options and we’ll identify what can be done to provide the right solution.

Using Bridging Loans to purchase investment property

If you are looking to purchase a property that needs refurbishment, a bridging loan maybe the ideal solution. It is important to make sure there are no other options – for example, if you are looking at purchasing the property, undertaking the refurbishment and then keeping it longer term (for example to rent out) you may find a Commercial Mortgage more cost-effective, or in some circumstances a specific ‘Light Refurbishment’ BTL mortgage maybe available.Bridging loan broker cardiff

Where a bridging loan is the answer, the lender would typically look to lend for a period of between 2 weeks and 24 months. Because the cost of bridging finance is typically higher than standard loans, the longer the loan is outstanding, the more costs (by way of interest) will need to be allocated to your project. Although many lenders will not consider offering a remortgage until the property has been owned for at least 6 months, this is not the case with every lender operating in the Buy to Let arena; and therefore if the property is suitable for main stream lending after a shorter period, there are still lenders that will consider lending in under 6 months. You’ll also be able to raise capital if the value of the property has been sufficiently enhanced. To find out more about re-financing a project within 6 months, click here

If you are a Landlord refurbishing rental property, take a look at for the Landlords National Property Group – this is the UK’s largest discount club for landlords, supplying all means of materials for refurbishing rental properties and allowing its members the benefit of huge buying power*


Your property may be repossessed if you do not keep up repayments on your loan


Some of the most frquently asked questions about Bridging Finance are itemised below, if you require any further information, please contact us, either by calling 02921754150 or email , you can also complete the brief enquiry form at the bottom of the page and we’ll get back to you.

Frequently asked questions:

What can I use my loan for?

It can be used for almost any legal purpose.

How much can I borrow?

With access to a wide range of funders, bridging loans are typically from a minimum of £10,000 and up to £2m

What costs are involved in taking out a bridging loan?

Fees do vary from lender to lender. It would be standard practice to pay a valuation fee once the initial decision to lend has been accepted. If the surveyor then confirms the property suitable for lending purposes, other fees may apply, such as Legal fees and administration fees. It is usually possible to add these fees to the loan, however, this will of course increase the overall amount you pay back. There is usually the option to ‘roll up’ or add the interest to the loan as well and in these circumstances there will be no monthly payment to service the loan during the agreed period.

What type of security can I borrow against?

There is a wide range of properties, subject to valuation. Residential, commercial and semi-commercial are most popular although it is also possible to borrow against land, particularly if it has some income generation (such as a car-park) of where it has planning permission.

What is the monthly interest rate?

This will depend on how robust the application is and which lender is willing to lend. Typically, at the time of publishing this page, rates are between 0.75% and 1.75% per month. You should always ask your broker for a full Illustration outlining all costs before entering into the contract.

Can we settle our loan early?

Many bridging loans are very flexible, and settling early is not usually prohibited.

Can we apply even if we have an existing mortgage?

Yes is the short answer. There are bridging funders who will consider taking a second charge behind a first charge mortgage provided there is sufficient equity in the property to do so.

How long will it take?

We aim to get a decision for you within 6 business hours. The loan can be available as quickly as 5 days from acceptance. As soon as we know exactly what is involved in a specific case, we can give accurate timescales.

What about adverse credit?

Adverse can be considered on a case by case basis, if you are a current (undischarged) bankrupt you should not apply for finance.

Differences between open and closed bridging loans

When taking out a bridging loan you need to have an exit route for how you intend to repay the loan at the end of the term. An exit route, or strategy, quite often involves the sale or refinancing of a property, the proceeds of which are used to repay the loan.

A closed bridging loan refers to a facility that will be cleared on a specific date. This would typically apply to bridging loans that are going to be cleared from the proceeds received from the sale of a property for which contracts have been exchanged and a completion date set. Closed bridging loans are a lower risk to lenders because they know exactly how and when they are going to be repaid.

In circumstances when bridging loans are required until a property has been sold but the sale date is unknown, these facilities are known as open bridging loans. Unless contracts have been exchanged a lender does not know when the loan will be repaid, and can only make an educated guess. This type of facility may have a time limit of 6 to 12 months placed on it and can be repaid anytime during this period.

Why use Harvey Bowes for your Bridging Loan?

Experience and expertise make Harvey Bowes the right choice for getting advice on, and applying for a Bridging Loan. Our team have many years of experience and we use our expertise to put forward all applications in the best possible light. If you need a bridging loan, you may not of thought about all of the options available to you, or how to put a professional proposal together, or what the exit route options are – that is one great reason to talk to us. We like to keep it simple, but understand the complexities. We’ll explore the options with you, if you need us to, and we’ll explain those options jargon-free. Contact us today to discuss your requirements: 02921754150.

Contact us


Your property may be repossessed if you do not keep up repayments on your loan


Harvey Bowes Limited does not have any affiliation to LNPG and does not receive any fee for referring Landlords

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