Our bridging loan calculator offers an insightful breakdown of the amount you can expect to borrow, based on the property you’re providing as security.
Property Used as Security
Interest Roll-Up Loan
Interest Serviced Loan
* Calculations are indicative and for guidance purposes only. Actual terms may vary.
Interest Options
Fees
Application Process
Eligibility Criteria
Acceptable Property Types
What is a Bridging Loan
Interest Options Explained
We offer two methods of paying the interest on a bridging loan:
1. Rolled-up interest: There are no monthly payments to make with a rolled-up interest bridging loan. The interest is paid as a lump sum at the end of the loan term.
2. Serviced interest: Making monthly interest payments is referred to as a serviced bridging loan. The interest payments are calculated from the day one gross loan amount which includes the lender’s facility fee.
The specific fees you’ll be required to pay may vary based your individual situation, but typically, here’s what you can expect to cover.
Arrangement Fee: This charge is applied by the lender for setting up the loan, commonly amounting to 2% of the net loan value. The arrangement fee is typically capitalised to the net loan and only paid on maturity of the loan.
Valuation Fee: Lenders often require an assessment of the property intended as collateral. The cost for this service varies, with fees ranging from complimentary to upwards of £2000. The valuation fee can be paid directly by the borrower or by reducing the net loan.
Legal Costs: For the legal aspects involved in securing a bridging loan, lenders will engage a solicitor, and you will incur a fee for these services. Legal fees generally start at £750.
Redemption Administration Charge: At the end of the bridging loan’s repayment term, a fee to cover administrative tasks, such as the removal of their lien from the property’s title documents.
1) A summary of the applicant’s track record in the UK property market.
2) A detailed description of the property or properties being offered as security.
3) Breakdown of any refurbishment costs or remaining construction costs (for development exit loans).
4) The planning reference number (for refurbishment loans if applicable).
5) RICS certified full valuation for the property to be taken as security.
6) Monitoring Surveyor reports for refurbishment and development exit deals.
Eligibility Criteria
We require a clear view on exit (repayment of the loan) via either sale of the funded properties or a re-finance onto longer term debt.
The borrower can be a limited company, a partnership, an LLP or sole proprietor.
Borrower must have a proven track record in similar type property transactions.
The borrower must be domiciled in the UK.
Acceptable Property Types
– Residential properties
– Multi-unit residential properties in rental use or houses in multiple occupation (up to ten units/rooms)
– Mixed use properties (residential space to make up more than 70% of the property square footage)
– Properties must be constructed using a method that is acceptable construction in line with required building regulations for the area in which they are located
– Freehold or leasehold properties are permitted (subject to a minimum of 70 years of unexpired term at the commencement of the loan)
– Student Accommodation
– Properties may be let, subject to certain criteria. Properties shall not in whole or in part be let to or occupied by connected parties to the borrower
Bridging Loans
Bridging loans serve as a short-term financial solution designed to assist in overcoming the financial gap when purchasing a property while concurrently selling another.
However, these loans are versatile and can also be utilised for various business needs. In instances where development projects face a funding shortfall, whether it be for light refurbishment or development exit, we offer swift bridging finance for residential and mixed-use projects, from £200,000 to £5 million.
