What is a Bridging Loan?

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.

What can our bridging loan be used for:

Equity release
against properties.

Residential and mixed-use
refurbishment projects.

Property Loan

Purchase
of properties.

Development exit allowing the borrower time or funding to complete their project.

Our specialised property finance team has extensive experience in the UK market, particularly in lending during market downturns.

At a glance
Loan Amount£200,000 – £5 million
Loan TermUp to 24 months
Security1st legal charge
Personal GuaranteeYes
Interest RateStarting from SONIA + 0.58% per month

Eligibility Guidelines

  • RICS certified full valuation on the property to be taken as security. The valuation must be instructed by and addressed to Momenta Finance.
  • We require a clear view on exit (repayment of the loan) via either sale of the funded properties or a refinance onto longer term debt.
  • We can fund borrowers across the UK including England, Wales, Scotland and Northern Ireland.
  • The borrower can be a limited company, a partnership, an LLP or sole proprietor.
  • The borrower must be domiciled in the UK.
  • The borrower must be able to demonstrate a good track record in UK property development, investment or management.
  • Personal Guarantees (PGs) will need to be signed by any individual related to the funding as deemed required by us.

How do I get a quote?

Our streamlined process is designed to accommodate busy developers on the move.

Our dedicated property finance team, backed by experience in the UK market, works in collaboration with a panel of seasoned valuers, monitoring surveyors, and legal firms. This strong network of professionals supports us throughout the transaction process, ensuring comprehensive and reliable assistance at every step.

1

Apply online

Apply online and upload the required documents.

2

Get approved

Receive a decision in as little as 1 hour.
If approved, we’ll provide a personalised, no-obligation quote.

3

Access your funds

Access your funds within 48 hours. Once you accept your offer, we’ll deposit the funds directly into your account.

Experience the ease and speed of property loans with Momenta Finance.

Frequently Asked Questions

How do the repayments work?

Repayments for a bridging loan are contingent upon the selected interest type. If you’re uncertain about the most suitable option for your business, our team can evaluate your needs and customise the optimal funding solution for you.

Interest can be rolled up for the full term of the loan (subject to LTV limits).  Alternatively, it can be serviced monthly if the property generates rental income.

Under the serviced interest arrangement, you pay the interest on a monthly basis and at the conclusion of the agreed-upon term you settle the initial loan amount.

What fees are associated with a bridging loan?

A bridging loan involves a greater number of associated fees than other funding alternatives. The fees may include:

  • Legal fees: These fees account for the expenses incurred by the lender for solicitors and legal processes during the loan setup.
  • Valuation fees: These fees account for the expenses incurred by the borrower to value the property according the the lender requirements. 
  • Up-front fee: These are fees charged to initiate the loan, typically structured as a percentage of the amount borrowed.  
  • Exit fee: Depending on the structure of the loan a nominal exit fee may be applicable, typically structured as a percentage of the amount borrowed.  
What security is required for a bridging loan?

We require the following security for a bridging loan:

  • Residential and mixed-use properties (where the commercial space of the property is <25% of the total property value).
  • Personal Guarantees (PGs) will need to be signed by any individual related to the funding as deemed required by us.
  • RICS certified full valuation on the property to be taken as security. The valuation must be instructed by and addressed to Momenta Finance.

Why Choose
Momenta Finance

Small business loans are what we do, all day, every day. Our specialist team from account management through to credit understand businesses just like yours and want them to succeed.

We are a member of the Federation of Small Business (FSB), Consumer Credit Finance Association, Association of Alternative Finance Brokers and a Patron of the National Association of Commercial Finance Brokers (NACFB). We are also registered with the Financial Conduct Authority. This means we adhere to their codes of practice and are uncompromising, in our principles and practise ethical and responsible lending at all times.

Good to know

Momenta Finance, acts as both a lender and a broker. Where we act as a broker, we receive a commission from the lender. This does not impact the final amount that you pay for borrowing.

Get started on funding your business today 

Reach out to us at 0800 848 8480 or contact@momentafinance.co.uk
to register as an Introducer, or request a quote to see how we can help you achieve your goals.