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Bridging Loans

Short Term Finance To Cover The Gap


What is a Bridging Loan?

  • Short term financing to ‘bridge’ a gap in arrangements
  • Typically taken out for 12 months for residential properties or 18+ month for development property
  • Short term structured borrowing costs
  • Borrowing is often repaid in less than a year


Bridging Loans are effectively a borrowed amount which is used to cover a gap in long-term finance arrangements or to cover specific short-term requirements. With similar amounts of finance as a mortgage, but with a shorter-term repayment structure they are often used to bridge the gap in moving a business into new premises or cover a home loan while you wait to sell.

But you may be wondering, why should I take out short-term financing?


The Advantages of a Bridging Loan

  • Terms can be tailored to suit your unique circumstances and projections.
  • Bridge finance can be arranged much quicker, within days or weeks, rather than months as with a regular mortgage.
  • This type of short-term loan is secured against property value, meaning they do not focus on your income or credit record.
  • For regulated bridging loans, the interest will be included in the total amount of the loan, which is to be repaid by the exit strategy at the end. This helps to relieve financial pressure on homeowners already paying for a personal mortgage.
  • The same option to include interest in the total amount is also available to non-regulated investor borrowers, which can reduce the pressure on cash flow throughout the project. 
  • It's possible to secure high loan-to-value (LTV) financing with a bridge loan. Many lenders are willing to offer 75% LTV terms, with some lenders willing to provide up to 80% LTV with additional security. The ability to source such a significant percentage of the finance needed gives borrowers sufficient leverage in buying a property in Scotland.


How to get a bridging loan


The Bridging Loans and Development Finance market has been enjoying brisk trading in recent times, and the Lending Channel can provide access to a wide range of secondary lenders.

Based in Scotland, we are experts in the Scottish bridging loans market, finding the best bespoke funding solutions available for our clients across the country (including Glasgow, Edinburgh, Fife, Dundee and Aberdeen) and throughout the UK. 

We provide guidance, support, and services to secure the best market leading rates that will meet all your requirements for short-term financing. With an extensive network of lenders and specialist knowledge in all financing areas, we are here for you.

Specialist Finance Panel


Our panel of specialist finance lenders can arrange bridging loans for many reasons, typically:

  • Open bridging loans and closed bridges; when there is a gap that needs bridging for property acquisition
  • Auction purchases, particularly when buying properties under market value
  • Development finance and short-term property finance; funding to purchase land or property for development (this funding is then redeemed by either the sale or refinance of the developed asset)
  • Cash flow
  • Tax bills


It is essential to consider your exit strategy before committing to a bridging loan, as this is a form of secured loan, and your property is at risk if you don’t secure funding in time to repay the bridging loan at the agreed date.


Please note that specialist finance of this type is not always authorised and regulated by the Financial Conduct Authority; therefore, our funders can afford to adopt a more flexible approach to assessing deals. Whatever your situation, give us a call to see if we can help.


The quickest way to have your short-term finance enquiry assessed is to telephone one of our advisers on 01738 583008 or complete the online enquiry to start the ball rolling. 


Introducers


If you have landed on this page and you are not a direct client looking for a lending solution, perhaps you are interested in introducing business to us? If so, please call now for more details or follow the Introducers Link.

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4.92% Secured Loan
The Lending Channel team recently completed a large £100k Secured Loan for a property client who needed to raise the cash quickly to assist with a property transaction.
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The Lending Channel are members of the National Association of Commercial Finance Brokers (NACFB).
2/1 King James VI Business Centre, Friarton Road, Perth, PH2 8DY
Tel: 01738 583008 | Fax: 01738 500402

The Lending Channel are authorised and regulated by the Financial Conduct Authority.
Company number SC334818
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THINK CAREFULLY BEFORE SECURING OTHER DEBTS AGAINST YOUR HOME YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP YOUR REPAYMENTS ON A MORTGAGE OR OTHER DEBT SECURED ON IT

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