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Bridging Finance Short Term Property Funding

 Bridging Finance – Short Term Property Funding


Bridging Finance

Bridging Finance provides short-term funding secured on UK properties, and can be arranged for for little as 1 day or for up to 24 months. They provide an interim funding solution for many purposes, a few of which are shown below:

  • Auction Purchase
  • Purchase at under Market Value
  • Property Purchase where fast completion is required
  • Purchase of property with no kitchen or bathroom
  • Purchase of property using another property as collateral so no deposit is required
  • Contingency Funding for Self Build Project


Bridging Finance lenders can make loans without the borrower  being required to prove their personal income. This opens up many opportunities to self employed and employed people who find it difficult to demonstrate what they actually earn. This facility used to be known as self-cert, or self certification of income. To make this possible, lenders deduct the loan interest from the amount being borrowed. This means that there are absolutely no monthly payments to make and if there are no monthly payments, the lender does not need to check affordability and no affordability check means there is no need to request proof of income. This allows property purchases or raising capital, which may otherwise be difficult. Of course, payment of monthly interest by direct debit is available for those borrowers who can demonstrate affordability. Here are more common uses for bridging finance.


  • Purchase virtually any residential or commercial property
  • Purchase of agricultural or building land with or without planning permission
  • Borrow 100% of purchase price using equity in an existing property as additional security
  • Raise capital to avoid repossession, prior to selling the property


Bridging Finance Lending Criteria

  • Residential loans generally up to 70% LTV but 85% LTV is available in some circumstances
  • Up to 100% LTV with additional security
  • Commercial Loans generally up to 65% LTV
  • Interest rates from 0.65% per month
  • Loans from £10,000 to £50M (higher by negotiation)
  • 1st 2nd and 3rd charges available
  • Fast and flexible
  • Any property type considered
  • Owner occupied or Investment (Buy To Let)
  • Interest only loans
  • Interest can be added into the loan
  • Loans where NO PROOF OF INCOME is required
  • Loans for properties in England, Scotland & Wales
  • Loans for property purchase, or refinancing
  • Loans for renovation and conversion projects
  • Loans for property development
  • Loans to fund Lease extensions for leasehold properties with a short-term leasehold
  • Capital raising for virtually any purpose
  • Interest rates quoted on an individual basis
  • Loans available where proof of income is a problem
  • No deposit required if other property can be used as additional security


Bridging Finance for Property Renovation & Property Development


Bridging Finance Self Build

One of the most common uses of bridging finance is to purchase un-mortgagable properties requiring renovation or refurbishment, prior to re-sale, or remortgage for letting. Our lenders make fast decisions and can arrange funds quickly to secure bargain properties requiring anything from a quick makeover to a full re-build. Look at the following list of projects for which we have recently arranged bridging finance.


  • A repossessed property requiring a new kitchen and bathroom, replastering and redecorating
  • A property in need of light refurbishment which was then sold for a good profit
  • A house which was converted into two flats and then rented
  • A distressed house sale where the owners needed a quick sale to avoid being repossessed
  • Purchase of building land where the planning permission had lapsed


Bridging loans can also be used to fund self-build projects and small developments where a self build mortgage is not suitable. Mainstream lenders sometimes see these as ‘high risk’ ventures, which puts it beyond their lending criteria and therefore cannot lend. Our bridging lenders have a ‘can-do’ approach and can fund these projects on a stage drawdown basis, so interest is only charged on what has actually been borrowed at any one time. Here are some of the ways bridging loans can help you:

  • Self-Build projects for purchase of land, plus additional funds to build your own house
  • Conversions of commercial property into residential dwellings
  • Extensions and loft conversions
  • Developments of up to 6 residential dwellings
  • Joint Venture Funding. This is where the lender teams up with the borrower in a ‘partnership’ arrangement to fund the purchase of land and/or building of new properties and the profit is shared between both parties. For more more information see Joint Venture Funding


There are many more uses for bridging loans and lenders are always looking to say ‘yes’ to the right deal. One of the most important factors a lender takes into consideration is – how will the loan be repaid? If they can see that there is a strong repayment method (exit strategy) such as a property sale or a remortgage, or an inheritance due in probate, then it makes lending more likely. Remember, all lenders need to lend, but they also need to be repaid. Here are some more ideas where bridging loans can help.

  • Releasing capital to beneficiaries from property in probate
  • Purchase of property where the main lender has made a full retention
  • Purchase of an unmortgagable house
  • Tenants buying from their landlord at a discount
  • Landlords wanting to have a pre-approved credit limit based on existing property values
  • Rolling loan facility to buy and sell properties
  • Second charge loans where a property is already mortgaged
  • Regulated loans and non-regulated loans


If you are interested in discussing bridging loans, or have a potential bridging loan scenario, call 0117 223 2050 now and speak direct to an adviser.

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