Bridging Loan
Best bridging loan rates
Bridging loan brokers for the very best interest rates and fast bridging loans anywhere in the UK. Up to £100 million plus we have a bridging loans calculator. The main advantages of using us are that we are very experienced and completely independent finance brokers. There are over 140 UK bridging loan lenders, from which we will quickly find you the best possible interest rate and all round deal. We will also advise you if there are any other finance options that could provide you with a better alternative.
- Bridging Loans from £25,000 to £100 million
- Immediate in principle decisions
- 48 hour funding is possible (But normally 5 to 7 working days)
- Loan periods from 1 to 24 months
- No exit fees
- Flexible lending criteria
- All circumstances considered
- We cover the whole of the UK and many other parts of the World
All phone calls and emails are answered by experienced brokers who are always happy to provide quotes and answer any questions that you may have. We believe in ‘keeping it simple’ and want to help you anyway we can.
Bridging Finance
Bridging loans are best used as a short term finance option as interest can seem high in comparison to some other loans. Interest will usually be charged at a percentage of the loan amount so be sure about the exact amount you need. Bridging finance should be carefully planned and it is essential to have an exit strategy to plan how the loan will be paid back. A closed loan is promised to be paid back by a specific date, while an open loan means that the lender does not know exactly know when the loan will be paid back but has an educated guess and time frame.Bridging Loans
Bridging loans can be used for various reasons, perhaps you're planning to buy and sell property for profit by improving and repairing the property with a quick turnaround. You may need to borrow an amount of money to fund the restoration or while you await the sale of the property, upon which you can pay the loan back. Alternatively, you could be moving house and while you have successfully input an offer on your new dream home, the sale of your current home falls through or you are have trouble selling it quickly enough. Without the money to fund the move, you fear the move could fall through, but a bridging loan could 'bridge' this time in between.Bridging Loans London
For bridging loans in London and throughout the UK, Kis Finance is one of the leading bridging loan brokers, offering suitable suggestions and advice for your situation. We'll be with you every step of the process to advise, so you can be sure you're making the right decision. Our experienced brokers are happy to answer any questions via phone and email. We'll help ensure that the loan can be secured quickly and that your needs are met as much as possible. Whatever your situation, whether you're employed, self-employed or even retired – you'll be able to secure a bridging loan. Even partnerships and companies can be eligible as long as they have equity to secure against such as a flat, home, commercial property or office. Bridging loans can be used to maintain a place in a sale chain, purchasing at auction, fulfilling orders and housing development as well as other purposes.
About bridging loans
These are typically short term finance facilities, for periods of 1 day to 1 year, for large sums of money ranging from £50,000 to £5 million. Bridging loans can be arranged quickly and are secured on the equity available in property owned by the borrower. Security can be provided by one or more properties on a first, second and sometimes even on a third charge basis. This type of facility can be arranged for both individuals and businesses and has flexible lending criteria. There are many bridging loan providers, including a number of very specialist lenders, allowing us to also provide facilities for periods of up to 2 years when required. We also have access to a number of niche lenders who specialise in providing very large commercial bridging loans up to, and in theory above, £100 million!
During the last couple of years bridging finance has experienced a year on year growth of close to 100 per cent. This has been due to:
- The stricter lending criteria imposed by other lenders, in particular the high street banks, which has made obtaining finance slower, more difficult or impossible.
- An increased demand for fast funds to facilitate the purchase of distressed and bargain priced properties available for a quick sale.
- Purchasing poor condition property to repair and sell on for a profit has become increasingly popular. The flexible lending criteria associated with bridging finance makes funding the purchase of this type of property possible.
- As more lenders have entered into the bridging market increased competition has brought bridging finance costs down. This has meant that more often when various finance facilities are available a bridging loan is increasingly becoming the cheapest option.
Retained, deferred and interest roll up facilities for bridging loans
Interest roll up facilities are available on many bridging loans, enabling the monthly interest charges for the whole term, or a set period, to be added to the loan facility. This means that for these months no monthly interest payments need to be made.
Bridging loan calculator
On our website you will find a simple to use bridging loan calculator. Please use this calculator as often as you like to calculate the monthly interest charges and arrangement fees for any bridging loan amount. You will be asked to provide the bridging amount required, monthly rate of interest and the arrangement fee in terms of a percentage of the loan required. Once these figures have been entered the bridging loan calculator will provide the amount of the arrangement fee, the total amount of the loan (amount required plus the arrangement fee) and the monthly interest only repayment amount.
Differences between open and closed bridging loans
When taking out a bridging loan you need to have an ‘exit strategy’ for how you intend to repay the loan at the end of the term. An exit strategy quite often involves the sale or refinancing of a property, the proceeds of which are used to repay your 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.
Interest rates and other costs
The main cost is the monthly rate of interest being charged. When compared to longer term finance options this monthly interest charge is high and is the main reason why bridging loans should only be intended as a short term finance option.
In addition to the monthly interest charge most bridging loans charge an arrangement fee. This is usually charged as a percentage of the loan amount, is typically about 1 or 2 percent, and is added to the loan facility. Sometimes there can be an exit fee, which is charged as a percentage of the bridging loan amount.
Other costs would be legal fees which pay the lender’s solicitor to secure their charge on the security property (or properties) at land registry.
Valuation fees will need to be paid before a bridging loan is paid out. In the absence of a valuation report that is suitable for the lender one will need to be obtained. We will make sure that before requesting a valuation an acceptable bridging loan offer (subject to valuation) is in place.
