Our bridging loan comparison is designed to make choosing the right bridging loan for you a simple process. Compare interest rates, criteria and terms to find the most suitable product for you and apply online instantly.
How The Process Works
Comparing bridging finance through our online comparison tool couldn’t be easier. Follow our 5 step process, as laid out below to secure the best bridging loan for you.
- Compare the products above to find the right product for you.
- Click ‘apply’ and input your details.
- One of our bridging loan experts will check your application to ensure your application meets all criteria. This ensures you don’t suffer any delays further down the line.
- The full application pack is sent to you to finalise the application.
- Your bridging loan is processed and managed to completion based on your required timescales.
What To Consider Before Taking Out A Bridging Loan
Before talking to an expert about your needs, there are a few other factors to consider. Bridging loans are designed to be a route to raising money quickly. Consider these 3 points before applying for your loan:-
#1 Understand What Is Available To You And The Fees And Charges Due From You
When looking to take out a bridging loan, especially for the first time, it is important that you understand how the loan works and what the likely costs are. You can do this above, by using our free bridging loan comparison tool to compare rates and fees based on your circumstances.
If your situation is complex, talk to one of our bridging loan experts before applying. Our experience and knowledge of the market will help you to find the best deal quickly and understand how the loan will work and what is expected of you.
#2 Consider How You Will Repay Your Bridging Loan BEFORE Taking It Out
Bridging loans are generally repaid through 1 of 3 methods:-
- Sale of the property.
- Refinance to longer-term debt.
- Money that is due to you but has not yet been received.
Due to the short term of borrowing and the fact bridging loan rates can be high in comparison to other, longer-term types of lending, it is important you are able to pay to loan off. Whether you are looking to refinance onto a cheaper form of debt, sell the property or anticipate money coming to you, it is important you are as sure as possible of the timescales.
When selecting the term of your bridging loan, it is easy to go for the shortest possible term in an attempt to reduce the amount of interest paid or maximise the net loan. If the loan term ends and you are unable to pay it back as agreed you will be in default of the loan and may well be penalised financially.
It is advised that when banking on the sale of a property, you are cautious. Delays are common and in this situation, you could miss the loans end date through no fault of your own.
The same can be said where refinance, or money that is due to be paid to you is the planned repayment method. Again, these can be delayed and cause issues.
If choosing to refinance, ensure the application you intend on submitting is realistic and likely to succeed. A lender will be able to give you an initial indication of their intention to lend. By taking this step, you will reduce the risk of failing to repay your bridging finance.
#3 Choosing The Right Solicitor
Choosing the right solicitor is crucial to ensuring the loan completes on time and without issue. A solicitor who is experienced in dealing with bridging loans will ensure the legal process runs smoothly and quickly.
Your solicitor will act as the sole liaison between the lender and yourself when it comes to your understanding of the legal terms of the loan. With this in mind, it is advisable that your solicitor is well versed in dealing with bridging loans.
Who Can Apply For A Bridging Loan?
The majority of bridging loans are taken out by individuals in either a sole name or joint names. If there are more than 2 applicants, lenders will often consider more, with 4 or more people regularly taking out loans in joint names.
In addition to borrowing personally, applications are often submitted using a company structure such as Ltd company or LLP. Where a Ltd company is used, a lender will generally want to take a personal guarantee. This is a guarantee from you personally that the debt will be repaid in full and on time.
We are often asked about limited company bridging loans without a personal guarantee. Although most lenders insist, there are some who will negotiate around reducing the personal guarantee or even removing it altogether.
Non-resident individuals, foreign nationals and offshore companies are also able to take out bridging finance in the UK.
There are several lenders who are happy to lend under these circumstances. Pension funds and trusts are also able to borrow, although this is more of a niche area and finding a willing lender would prove very difficult without using an expert.
If your situation is complex, talk to one of our bridging loan experts who will work with you to secure the best possible terms.