Bridging and Development Finance

Bridging Loans

A bridging loan is a short-term loan which is secured against property or land. Typically, they last for terms up to 24 months. Unlike other forms of finance, you can choose to have the interest rolled, meaning that no monthly payments have to be made during the term of the loan. This makes bridging finance a versatile option for property investors and developers.

Bridging Loans can be used for:

  • Auction purchase
  • Refurbish a property
  • Purchasing properties that is unsuitable for a standard mortgage
  • Purchasing a property below market value
  • Raise funds for business purposes
  • Save a property from being repossessed
  • Purchase a property whilst the sale of another property goes through

The advantages of using Bridging Loans

Speed: Whilst traditional finance methods usually take longer to complete due to strict underwriting processes, Bridging Finance is designed to be a short-term option and usually takes around 2-3 weeks to complete. We are able to complete quicker for urgent cases.

Flexibility: Bridging Loan lenders are able to fill the gaps where traditional lenders are unable to assist. This means that no matter the complexity of the project or your own credit profile, there is a funding option available to you.

Key Criteria

Loan Size: £50,000 – £50 million

Loan Term: 1 month – 24 months

Security: First or Second charge

Borrower: Individual or Company

Property Type: Residential, Semi-Commercial, Commercial and Land

Location: England, Scotland and Wales

Rates: Starting from 0.4% per month

Maximum Loan-to-Value: 85%

Credit History: All credit profiles considered

Development Finance

Development finance is a short-term funding option for property developers used for either conversions on existing properties or for new-build development projects. This type of finance assists developers with the purchase of a site (or refinance if already owned) and can potentially help with 100% of the build costs of the project.

Key Criteria

Loan Size: £50,000 – £50 million

Loan Term: 1 month – 24 months

Security: First or Second charge

Borrower: Individual or Company

Property Type: Residential, Semi-Commercial, Commercial and Land

Location: England, Scotland and Wale

Rates: Starting from 4.5% per annum

Loan-to-Value: Maximum 75% Loan-to-Gross Development Value/100% Loan-to Cost

Joint Venture options available with profit share

Credit History: All credit profiles considered

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