There are well over 150 bridging loan providers in the UK. These range from large lending institutions to private individuals.
With so many lenders, interest rates, fees and other costs vary considerably, but so does the lending criteria. Every lender has their own criteria, some look to do the low risk facilities, others specialise, having their own niche facilities.
Our extensive panel of lenders allows us to provide the following:
£100,000 to £1 billion
Although in theory there is no upper limit
1 day to 36 months
By definition a bridging loan is a short term facility ranging from 1 day to 12 months.
However, most bridging lenders offer terms up to 18 months (12 months maximum for regulated bridging loans).
Some lenders provide short term loan facilities up to 36 months.
Please note - Regulated loans are limited to 12 months due to FCA regulations.
Most bridging loan providers require property as security. This could be just one property, or several. They will secure their loan by taking a charge over the property or properties. This is registered at land registry by way of a first charge, second charge or even a third charge.
A first charge is used when the property is unencumbered (no existing loans or mortgages secured against it), or if the existing lender is being cleared using some or all of the proceeds of the bridging loan.
Second and third charges are used when there is an existing charge but it is not being cleared.
We can look at all property types:
Residential property is the most popular type of security, so attract the cheapest deals.
There are some lenders who will lend against assets such as jewellery, watches, vehicles, antiques, gold, precious gems and art. Please call us for further information.
Bridging lenders will lend on properties that are in a poor state of repair, in need of restoration or need to be completely demolished.
Bridging loans are a perfect solution for raising funds against property considered unsuitable for mortgage purposes.
Loan facilities are available nationwide:
We also have facilities for:
Bridging loans are available to individuals and businesses. Facilities can be set up for:
From 18 years old upwards. Some lenders have an upper limit, some do not. However the applicant needs to be completely aware of what they are doing, unless there is a Power of Attorney in place.
Many lenders are not too bothered about credit history. Facilities available for:
Many facilities do not require any proof of income. This is because monthly interest payments are not required as the interest is paid when the loan is cleared.
Bridging loans can be used for almost any legal purpose, including:
Most facilities are set up with roll up, deferred or retained interest. This means that the interest is repaid when the loan is redeemed. If required interest can be paid each month on many facilities, but this usually requires confirmation of income and affordability proof.
Last updated: 13 April 2022 | © KIS Bridging Loans 2020