Bespoke Bridging Loans
Looking for quick property finance?
Residential bridging loans offer the rapid, flexible funding you need. At Bridging Finance London, we specialise in high-value bridging loans tailored to your exact requirements.
Expert finance advice
tailored to you
Quality service
Fast, friendly and professional service.
Lender Choice
Over 250 Banks, Hedge Funds, Family Offices & more.
Experience
Over 15 years of specialist finance broking.
Bespoke Lending
Finance tailored specifically to meet your needs.
What Are Residential Bridging Loans?
Residential bridging loans are short-term secured loans that quickly close financial gaps in property transactions.
They’re faster and more adaptable than traditional mortgages, perfect for time-critical situations like auction purchases or preventing property chain breakdowns.
The essence of most bridging loans is that; they can be arranged really fast and they are temporary. So you can borrow fast but need to repay fast as well.
Our residential bridging loans offer:
£250,000 to unlimited loan amounts
Up to 80% Loan-to-Value (LTV)
Same day AVM valuations (70% LTV)
3 to 36-month terms
Rolled up or serviced interest options
Availability for ages 18 to 85
Why Choose a Residential Bridging Loan?
Speed is the primary advantage.
While traditional mortgages can take months, we approve and fund bridging loans in days or weeks.
This quick capital access is essential when opportunities are time-sensitive.
explore bridging loansFlexibility is another key benefit.
Use bridging loans to:
- Fix property chain issues
- Fund renovations
- Buy at auction
- Secure your next home before selling your current one
Bridging lenders look at your whole financial picture, focusing on property value and exit strategy rather than just income and credit score.
Who Needs Residential Bridging Loans?
Bridging loans are secured against homes and residential properties, allowing the owner quick access to their equity.
Our bridging loans serve:
- Property investors needing quick purchase and renovation funds
- Homeowners in complex buying situations
- Auction property buyers facing tight deadlines
- High-net-worth individuals seizing time-sensitive opportunities
Read more: What Can a Bridging Loan Be Used For?
What are AVM valuations?
AVMs are computer programmes that estimate property values using data and maths. More and more UK lenders are using them and you’ve probably come across consumer versions on sites like Zoopla.
AVMs can greatly speed up the processing of loan applications.
We have lenders that receive their AVM results so quickly, that a case can move to the legal stage on the same day it is received.
Read more: What is an Automated Valuation Model (AVM)?
Let’s Talk!
Top Uses for Residential Bridging Loans
Bridging loans are a powerful borrowing option, offering quick and flexible solutions for a variety of property-related challenges.
Whether you’re a homeowner, investor, or developer, these short-term loans can help you seize opportunities and overcome obstacles that traditional financing can’t address.
Here are the top scenarios where a bridging loan can make all the difference:
Break Property Chains
One of the most common uses for bridging loans is to break property chains.
In the UK property market, chains are a frequent source of stress and delays. A bridging loan allows you to secure your dream home without waiting for your current property to sell.
How it works: You take out a bridging loan against your current property to part-fund the purchase of your new home. Once your existing property sells, you use the proceeds to repay the bridging loan. This approach removes the pressure to sell quickly and potentially accept a lower offer, giving you more control over your property transactions.
Read more: How to Use Bridging Finance to Break a Property Chain
Buy Before Selling
Similar to breaking chains, bridging finance enables you to choose to buy your next property before selling your current one.
This strategy offers several advantages:
- Move at your own pace without rushing to sell
- Avoid the need for temporary accommodation between properties
- Conduct renovations on your new property before moving in
- Take advantage of favourable market conditions or a great property find
With a bridging loan, you can make an offer on a new property as a cash buyer, often putting you in a stronger negotiating position.
Purchase Uninhabitable Properties
Traditional lenders shy away from properties in very poor condition, creating a catch-22 for buyers and investors.
Bridging loans fill this gap, allowing you to:
- Purchase properties that don’t meet standard mortgage criteria
- Fund both the purchase and renovation costs in one loan
- Increase the property’s value through refurbishment
- Refinance to a standard mortgage once works are complete
This approach is particularly popular with investors looking to add value to properties through renovation and developers converting commercial properties to residential use.
Snap Up Below-Market Deals
In the competitive property market, the ability to act quickly can be the difference between securing a great deal and missing out.
Bridging loans provide the speed and flexibility to capitalise on:
- Auction properties, where completion is typically required within 28 days
- Distressed sales or motivated sellers needing a quick transaction
- Off-market opportunities that require rapid action
By having swift access to funds, you can move faster than competitors relying on traditional financing, often securing properties at better prices.
Read more: Bridging Loans for Property Flipping
Prevent Repossession
For homeowners facing financial difficulties, a bridging loan can be a lifeline.
It can provide breathing space to:
- Prevent imminent repossession
- Clear arrears and regain control of your financial situation
- Arrange long-term refinancing or plan for an orderly sale
While this should be approached cautiously and with professional advice, in the right circumstances, a bridging loan can help homeowners avoid the distress and financial impact of repossession.
Fund Property Development
For developers and investors, bridging loans can be an essential tool in the development process:
- Acquire land or property for development
- Fund initial construction costs
- Cover planning and professional fees
- Bridge the gap between construction phases
Bridging finance’s flexibility makes it well-suited to the dynamic nature of property development, where speed and adaptability are important.
Manage Inheritance Tax
When inheriting property, Inheritance Tax (IHT) can present a significant financial burden, often due before the estate is settled.
A bridging loan can:
- Provide funds to pay IHT quickly, avoiding penalties
- Allow beneficiaries to retain inherited property rather than forcing a sale
- Offer time to make considered decisions about inherited assets
This use of bridging finance can be particularly valuable when inheriting high-value properties or complex estates.
While not strictly a bridge loan, probate loans can allow executors and beneficiaries access to an estates value before probate is finalised.
Read more: Can you get a loan to pay inheritance tax?
Exit Strategies: Ensuring Smooth Repayment
When applying for a bridging loan, having a robust exit strategy is not just important—it’s essential.
Your exit strategy is your plan for repaying the loan at the end of its term.
It’s a vital element that lenders carefully assess when considering your loan application, and it’s important for your financial security.
At Bridging Finance London, we work closely with you to develop a viable exit strategy tailored to your specific circumstances.
Here’s an in-depth look at common exit strategies and how to ensure they’re successful:
Property Sale
Selling the property is one of the most straightforward exit strategies.
It’s commonly used when:
- You’ve purchased a property to renovate and sell for profit
- You’re selling your current home after using a bridge to buy a new one
- You’re an investor looking to capitalise on short-term market gains
Key Considerations:
- Market conditions: Assess the local property market to ensure your sale timeline is realistic
- Property valuation: Get a professional valuation to price your property correctly
- Marketing strategy: Plan how you’ll market the property to ensure a timely sale
- Contingency plans: Have a backup strategy in case the sale takes longer than expected
Refinancing to a Long-Term Mortgage
Refinancing your bridging loan to a long-term mortgage is a popular strategy, particularly for:
- Buy-to-let investors
- Homeowners who used a bridge to break a property chain
- Property developers completing a project
Key Considerations:
- Mortgage eligibility: Ensure you meet the criteria for a long-term mortgage
- Property value: The completed value of the property should support the desired mortgage amount
- Timing: Start the mortgage application process well before your bridging loan term ends
- Rental income: For buy-to-let properties, ensure the expected rental income meets lenders’ requirements
Related reading: Do You Need a Good Credit Score for a Bridging Loan?
Development Project Completion and Sale
This strategy is specific to property developers using bridging finance to fund a development project.
The exit involves:
- Completing the development
- Selling the completed units
Key Considerations:
- Project timeline: Ensure your development schedule aligns with your loan term
- Market demand: Research the demand for your completed units to ensure timely sales
- Pre-sales: Consider securing pre-sales to reduce risk
- Phased exit: For larger developments, consider a phased exit strategy, repaying the loan in stages as units are sold
Inheritance or Other Expected Funds
In some cases, your exit strategy might involve expected funds from:
- An inheritance
- The sale of another asset
- A business sale or other liquidity event
Key Considerations:
- Timing: Ensure the expected funds will be available before your loan term ends
- Certainty: Assess how certain the incoming funds are and have a backup plan
- Legal aspects: Understand any legal processes that might delay the receipt of funds
Refinancing with Another Bridging Loan
While not ideal, in some circumstances, refinancing with another bridging loan can be a viable exit strategy.
This might be appropriate if:
- Your original exit strategy has been delayed but is still viable
- Market conditions have temporarily changed, affecting your initial plan
Key Considerations:
- Costs: Understand the costs involved in taking out another bridging loan
- Long-term viability: Ensure this strategy doesn’t just postpone an inevitable problem
- Lender appetite: Not all lenders will refinance an existing bridge, so options may be limited
Ensuring a Successful Exit
Regardless of your chosen strategy, these steps will help ensure a smooth exit:
- Start planning early: Begin working on your exit strategy before you take out the loan
- Stay informed: Keep up-to-date with market conditions that might affect your exit
- Communicate with your lender: Keep your lender informed of any changes or potential delays
- Be realistic: Set achievable timelines and valuations
- Have a backup plan: Always have a Plan B in case your primary exit strategy faces challenges
At Bridging Finance London, we don’t just arrange your loan—we partner with you throughout the process.
Our team of experts will help you develop a robust exit strategy, monitor its progress, and provide guidance if adjustments are needed. With our support, you can confidently leverage the power of bridging finance while ensuring a smooth and successful repayment.
Why Choose Bridging Finance London?
In the world of property finance, having the right partner can make all the difference.
At Bridging Finance London, we offer more than just loans – we provide expertise, access, and tailored solutions that set us apart in the bridging finance industry.
Proven Success with High-Value, Complex Cases
Our track record speaks for itself. We specialise in arranging finance for situations that might challenge other brokers:
High-value properties: We routinely handle multi-million pound deals, understanding the unique considerations they entail.
Complex ownership structures: Whether it’s offshore companies, trusts, or multi-layered corporate structures, we have the expertise to navigate complexity.
Unconventional income sources: For clients with non-standard income streams, we know how to present your case effectively to lenders.
Time-sensitive deals: When speed is critical, our efficient processes and strong lender relationships allow us to move quickly.
Case Study: We recently secured a £5 million bridging loan for a client purchasing a prime London property through an offshore trust structure. Despite the complexity, we completed the deal within 10 days, beating the client’s tight deadline.
Exclusive Lender Access and Rates
Our network and reputation in the industry open doors:
Extensive lender panel: We have relationships with over 250 lenders, from high-street banks to private financiers.
Off-market options: Some of our lending partners work exclusively through us, offering unique products not available elsewhere.
Competitive rates: Our volume of business and strong relationships allow us to negotiate favourable terms for our clients.
Flexible criteria: We can often secure approvals for cases that might not fit standard lending criteria, including second charge bridging finance.
Personalised Service
We understand that high-net-worth individuals have unique needs and expectations:
Dedicated advisers: You’ll work with a senior adviser throughout the process, ensuring consistency and personalised attention.
Discretion assured: We handle all cases with the utmost confidentiality, respecting your privacy.
Holistic approach: We consider your broader financial picture, not just the immediate transaction.
Flexible communication: We adapt to your preferences, whether that’s face-to-face meetings, video calls, or communicating through your representatives.
Commitment to Finding Your Ideal Financial Solution
We’re not just brokers – we’re your partners in achieving your property finance goals:
Tailored strategies: We craft bespoke financing solutions that align with your specific objectives and circumstances.
Creative problem-solving: When conventional approaches fall short, we think outside the box to overcome obstacles.
Long-term perspective: We aim to build lasting relationships, supporting your property finance needs now and in the future.
Transparent advice: We provide clear, honest guidance, ensuring you understand all aspects of your financing options.
Expertise Across the Property Spectrum
Our knowledge extends across various property types and scenarios:
Residential: From luxury homes to large-scale housing developments.
Commercial: Office buildings, retail spaces, industrial units, and more.
Mixed-use: We understand the unique considerations of properties with both residential and commercial elements.
Development projects: From small renovations to major construction projects.
Streamlined, Efficient Process
We know that in property finance, time often equals money:
Quick initial assessment: We can usually provide an initial decision in principle within hours.
Efficient documentation: Our streamlined processes ensure we gather all necessary information upfront, minimising delays.
Proactive management: We actively manage your application through to completion, anticipating and addressing potential issues before they arise.
