We excel in providing quick, adaptable bridging loans designed for London’s unique property landscape.
Our knowledge spans the entire capital, from the City’s bustling core, out to East London and West London, to the tranquil enclaves of Richmond and Hampstead.
Bridging loans are essential for property investors, developers, and homeowners in London.
These short-term financial solutions connect the gap between property acquisition and long-term financing, enabling swift action when time is of the essence. Whether you’re aiming to acquire an undervalued auction property, prevent a home purchase chain from collapsing, or secure rapid funds for a business venture, bridging finance London can provide the necessary capital.
In London’s competitive environment, rapid responses are essential.
We recognise this need, which is why we provide loans of up to 80% loan-to-value (LTV), with potential for up to 90% LTV in specific situations. This high LTV ratio, coupled with our efficient application process, ensures you have the financial capability to compete effectively in London’s fast-moving property arena.
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.
Types of Bridging Loans Available in London
London’s varied property scene requires a range of bridging loan options.
Open bridging loans are favoured by London’s property developers and investors, offering flexibility without a fixed repayment date. This suits the unpredictable nature of project timelines in the capital.
Closed bridging loans, with set repayment dates, are often utilised by homebuyers to secure properties while awaiting the sale of their current homes.
For owner-occupied properties, regulated bridging loans are needed that comply with Financial Conduct Authority (FCA) guidelines. These are particularly useful in London’s high-value residential market, where property chains are common and prone to disruption.
In London’s thriving business districts, we provide unregulated bridging loans for commercial properties, offering quick capital for business growth or property acquisition.
London Property Market Overview
London’s property market remains one of the world’s most dynamic and resilient.
Despite recent challenges, the average house price in London reached £534,884 as of April 2023, according to the UK House Price Index. This figure represents a 0.9% increase from the previous year, showcasing the market’s ongoing strength.
The city’s prime areas, such as Mayfair, South Kensington and Chelsea, continue to attract high-net-worth individuals and overseas investors, with average property prices exceeding £2 million.
Meanwhile, areas in South London like Croydon offer more accessible options, with average prices around £350,000, appealing to first-time buyers and investors seeking yield.
Recent developments, including the Elizabeth Line (Crossrail), have enhanced property values in areas such as Woolwich and Abbey Wood, creating new investment hotspots. The ongoing regeneration of Battersea and Nine Elms is also reshaping London’s property landscape, presenting exciting prospects for developers and investors.
How Bridging Loans Work
Bridging loans are short-term financing solutions, usually lasting 1 to 18 months.
They can be used for various property-related purposes, from home purchases to commercial development projects. The application process is rapid, often concluding within days, which is vital in London’s fast-paced market.
Bridge loans are similar to development finance loans in London. But they tend to fund an initial lump sum, whereas development loans will payout in stages, as the site grows.
In London, loan amounts can range from £150,000 to several million pounds, reflecting the city’s diverse property values. As an established bridging finance broker, we have lenders that are happy to go to £25 million and beyond, for the right deal.
As mentioned, we offer up to 80% LTV, with the possibility of 90% in certain cases. This high LTV ratio is particularly advantageous in London, where property values significantly exceed the national average.
We provide fast bridging loans for a variety of properties, including residential homes, commercial buildings, and mixed-use developments. This versatility is essential in a city with such diverse property stock, from period homes in North London to modern office complexes in Canary Wharf.
We can even arrange a cross-charge bridge which is secured against more than one property, giving you more borrowing power. Alternatively, a 2nd charge bridging loan can give you access to equity without having to disrupt the first charge mortgage.
When applying for a bridge loan, a clear and plausible exit strategy is always needed.
This could involve selling another property, refinancing to a long-term mortgage, or completing and selling a development project. We collaborate closely with our clients to ensure they meet the lender’s criteria and their exit strategy is robust and achievable within London’s market conditions.
Benefits of Using Us
Choosing Bridging Finance London for your bridging loan needs in the capital offers several key advantages.
We are based in Central London and our deep understanding of London’s property market allows us to offer tailored solutions that align with local trends and opportunities. We have long-term connections with over 250 lenders, including private banks and individual wealthy lenders, providing access to a wide range of funding options.
Our proficiency in high-value transactions is particularly beneficial in London’s premium property market.
Our bridging finance brokers regularly handle multi-million-pound-plus finance, ensuring we can meet the needs of high-net-worth individuals and large-scale property investors operating in the capital.
Speed is another crucial benefit we offer. In London’s competitive market, quick action can make the difference between securing a prime property and missing out. Our streamlined process and extensive network allow us to arrange fast bridging finance, often within days.
We have lenders that can utilise Automated Valuation Models (AVM), where certain deals can be approved and go to legals on the same day as the application.
Case Study
Recently, we assisted a client in securing a prime residential property in Fitzrovia.
The client, a successful entrepreneur, found their ideal home but risked losing it due to a delay in selling their current property in St John’s Wood.
We arranged a large bridging loan of £3.5 million within five working days, allowing the client to proceed with the purchase. The loan was set at 70% LTV, with an interest rate of 0.65% per month. The exit strategy was the sale of the client’s St John’s Wood property, which completed two months later.
This case exemplifies how bridging finance can be crucial in London’s high-value property market, where opportunities can slip away without quick action. Our ability to arrange large bridging loans swiftly, ensured our client didn’t miss out on their dream home.
By providing flexible, fast, and tailored bridging loan solutions, we are committed to helping our clients succeed in the complexities of the London property market.
Whether you’re a seasoned investor, a business owner, or a homebuyer, we’re here to provide the financial support you need to thrive in one of the world’s most exciting property markets.
Need some help?
If you need a short-term bridging loan then a specialist broker is a good place to start. You will get expert help and advice along with a wide range of lenders to choose from.
To speak with a specialist broker, please call us on 020 3488 5706.
