£26K to £25m
The Best Large Bridging Loans
Bridging finance solutions enable borrowers to access simple to arrange short-term loans that can be used for a variety of reasons. These lines of credit are predominantly employed, as the name “bridge loan” suggests, to “bridge the gap” between longer-term financial solutions.
For example, one of the most common ways a bridging loan is used is to complete the purchase of a property whilst an existing property is still waiting to be sold. Another is to pay for a property bought at auction within the 28 day completion period, whilst a traditional mortgage is being arranged.
A bridging loan is usually secured against property or assets, and the loan is usually borrowed over 3 to 24 months, ranging between anything from £26K to over £25m.
Multi million pound bridging finance solutions require more specialist lenders who cater specifically to large-scale projects. The majority of bridging loan lenders who cater to the property market will have an upper limit of around £5m.
As the budget for property investment increases, so to do the risks, meaning many lenders are unwilling to take on the risk of a default on sums that reach in to the millions.
It requires a more experienced and financially secure lender to arrange large bridging finance solutions, making them harder to find, but this also provides more security for the borrower.
We are a highly experienced team of bridging finance specialists. We compare over 100 lenders to secure you the best rates on loans from £26K to £5M and can give you an in principle decision within 24 hours.
When Are Large Bridging Loans Appropriate?
Large bridging finance solutions can be used to:
- Purchase a luxury property when the mortgage chain is broken, ensuring that you have the funds to complete the purchase on a new home even if the sale of your existing home falls through.
- Secure a property quickly, to prevent another interested buyer swooping in and buying it whilst you are waiting to secure a mortgage.
- Buy a property at auction. Auction sales require a 10% deposit on the day of sale and you to complete the purchase within 28 days. Bridging finance can be used to make these payments quickly whilst you apply for long term finance.
Key Benefits Of Bridging Finance Solutions
Why are bridging loans a good option when compared to other financial products?
- They offer a short-term source of finance, lasting between 3 and 24 months.
- They can be sourced and secured quickly, much quicker than a mortgage would take to arrange.
- They can be utilised for a diverse range of needs.
- They can be secured on both residential and commercial properties.
- They offer great flexibility on exit strategy agreements.
- They offer fair interest rates.
- They also offer great flexibility when considering terms.
Not sure whether a bridging loan is for you? Call us on 01202 612934 and we can advise you whether it is the best solution for your needs.
Why Are Realistic Exit Strategies Needed For Bridging Finance Solutions?
Bridging finance solutions require that there is a realistic exit strategy in place. This is a key requirement of a bridging loan which needs to be thought through carefully.
An exit strategy explains how you’ll intend to repay the bridging loan. For example, if you require the bridging loan for a house purchase and are waiting for the buyers of your current home to complete, the exit strategy is the sale of your house. Once this occurs you will repay the loan from the proceeds of the sale.
Without clearly defining your ability to repay the loan through either manageable repayments or a one-off repayment, then applications for a bridging loan may be denied.
How Much Does A Large Bridge Loan Cost?
Bridging loans are naturally a more expensive financial product compared with longer-term loans, because of their short repayment terms and easy accessibility. Because bridging finance is only designed for terms up to two years, and as a way to bridge the gap between other forms of finance, they can be highly cost-effective if used correctly.
How much is a bridging loan? That depends on a number of factors, including the size of the loan, the purpose of the loan, what assets you have secured it against and the viability of your exit strategy.
An interest rate of 1% is an ideal starting point for negotiating with a lender on any type of bridging finance, and for loans over £1m you may be able to negotiate even further. Interest is charged on a monthly basis, and lenders will also charge a lender arrangement fee - usually between 1% and 2% of the loan total.
We arrange loans with interest rates from as low as 0.44%. To see the bridging loan rates we can offer you then please use our bridging loan calculator here
Repayments are fairly flexible with bridge funding. You may make monthly or staged repayments, but it is also possible for interest and fees to be rolled up into a single final repayment.
The monthly interest rate on a bridging loan is also just one of the factors that you need to consider when applying for a loan. In comparing facilities, you should look at things like:
- Arrangement fees
- Legal costs
- Administration charges
- Valuation fees
- Exit fees
- Redemption penalties
The best bridging loan may not be the one with the lowest interest rate. Bridging loan brokers take this into account when finding you the best deal.
Specialist Lenders Are Needed For The Best Bridging Finance Solutions
Bridging lenders who typically offer smaller loans are often happy to offer facilities of up to £5m for the right borrower. However, there are not many that will go past this amount. This means that those looking for large bridge loans often find it difficult to find lenders who can accommodate their funding requirements.
Our Highly Experienced Team Can Help with Large Bridging Loans
Offering decades of experience across our dedicated team, we're a bridging loan broker that specialises in sourcing lenders offering multi million pound bridging finance solutions.
The bridging financial market can be difficult to enter into. Many of the biggest lenders, who offer the most competitive rates, will only work with brokers and not directly with the general public. This is why those who compare bridging loans online may often not get the best rates available.
This is where we can step in and make your case to the right lenders, giving you access to the best rates currently available on the market.
- Facilities up to £25M
- Rates from 0.44%
- Term length from 3 to 24 months
- Special rates and terms for large bridging loans
- Fast arrangement
- Monthly or rolled up interest
- Open or closed bridging loans
- Regulated by the FCA or unregulated
- Commercial or residential bridge loans
- Property developments
- Available to companies, sole traders, individuals, and partnerships
- For new builds and all types of developments
Are you searching for the best bridging finance solutions for your next purchase or project? Then please call and speak to a specialist on 01202 612934 or email us and we will be more than happy to discuss your options with you.
