How to get a Bridging Loan in Scotland
If you’re in need of a fast, low cost bridging loan in Scotland then ABC Finance is here to help.
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How do bridging loans in Scotland work?
Scottish bridging loans have many similarities to bridging loans across the UK; however, there are some subtle yet important differences.
Bridging loans for residential property and homebuyers in Scotland
A property sale in Scotland is legally binding much earlier in comparison to England, Wales and Northern Ireland and prospective buyers work on a sealed bid basis. This means that if you are looking to purchase a property you may need to move fast and if you haven’t already sold your property you could miss out.
An example of how a bridging loan would work:
- You want to buy a house for £600,000 and you need to put down a £200,000 deposit and borrow the rest on a mortgage.
- Your house hasn’t sold yet and you only have £50,000 in savings.
- You ‘bridge’ the gap and get a bridging loan for £150,000 to cover the deposit until you sell your house.
- When your house sells you pay off the bridging loan with interest (accrued on a monthly basis and payable at the point of loan exit.)
The maximum loan amount in Scotland is normally up to 75% loan-to-value, so 75% of what the property is worth. This is a figure set by the Financial Conduct Authority (FCA). Not all loans are regulated and whilst some lenders will provide a higher loan-to-value these are unregulated loans that do not offer the oversight and protection that the FCA provides.
Bridging loans for commercial property in Scotland
Commercial bridging loans are financial products that are frequently used by the business community, particularly property investors and developers. As with residential bridging loans, a commercial loan is a short-term method of funding a purchase. The types of scenarios where a commercial bridging loan is used are to buy property, land or machinery and also to complete renovations.
The average repayment period for a commercial bridging loan is twelve months, although this can extend to 18 months. A bridge solution is meant to be a stop-gap until longer term funding is secured. For example, a high street bank or conventional lender may not offer a mortgage on a buy-to-let property until work has been undertaken on it to ensure it meets acceptable building and safety standards. A commercial loan can provide funds for renovation and then once work is complete the property owner can secure a long term, lower interest financial product such as a buy-to-let mortgage.
Talk to Lee about arranging a bridging loan in Scotland
If you need a bridging loan in Scotland, get in touch with Lee today. Bridging loans of up to £300k can be arranged and paid in as little as 72 hours.
Lee Hemming is a specialist bridging loan advisor at ABC Finance with years of experience arranging the right finance solutions for our customers. Call, email or contact ABC Finance today to learn more.
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How much can you borrow with a bridging loan in Scotland?
The amount you can borrow with a bridging loan varies and is dependent on the equity available, which is what a property is worth (or will be worth when it has been renovated) minus any outstanding liabilities or loans.
An average range for a bridging loan is between £50,000 and £10 million; however, lenders will provide finance from £10,000 to £250,000 depending on your circumstances. Bridging loans are classed as residential for private property, semi-commercial and commercial with the financial available increasing for each category.
How quickly can you get a bridging loan in Scotland?
A key feature of bridging loans is the speed at which they can be arranged, in Scotland solicitors often sell properties directly acting as legal adviser and estate agent streamlining the process.
In Scotland a seller must provide a home report upfront giving detailed information about the property; this means that there are fewer checks to be completed by the lender when they are assessing a loan application.
Bridging loans can be arranged relatively quickly, ordinarily within 5-21 days. On rare occasions a loan can be approved in a few days although this is not typical. ABC Finance can give a funding decision
If you are looking for a very speedy turnaround then it is advisable to compare lenders as there is a variance lender compliance requirements. It should be noted that if a lender is prepared to accept a lower standard of assurance on the property by undertaking fewer checks it is likely their risk is higher, and thus their rates will likely reflect this.
The lenders with the lowest rates often take longer as they have rigorous application processes.
You can read the ABC Finance guide to bridging loan timescales for further information on how long the application process takes.
Our fast bridging loans timescales:
Loan
Timescale
Up to £300k
3 Days
Up to £750k
7 Days
More than £750k
3 Weeks
How can you get a bridging loan in Scotland?
Bridging loans have become more mainstream and are now provided by many lenders. It is, however, wise to compare lenders and deals as terms vary widely.
Additionally, if your focus is the speed of the transaction then you are likely to seek a lender with fewer compliance requirements.
Whilst individuals and businesses can apply to bridging loan lenders directly this can be a time consuming, repetitive process. With a large range of financial products available it is preferable to seek expert advice to find a lender with experience in this area, particularly in Scottish bridging loans.
Using a specialist loans broker, such as ABC Finance, means that we can negotiate with lenders to find you the best possible deal. Getting a quote is easy, our advisors will call you back for a confidential, friendly no-obligation discussion. If you wish to proceed they will help you fill in a simple form to begin searching for the right lender for you. Initial approval can move quickly and in straightforward cases funding can be made available within a few weeks.
ABC Finance business has been supporting businesses across the UK since 2000 and is regulated by the Financial Conduct Authority. Our experts work with a wide panel of lenders and take time to understand your business needs to get you the best deal; our aim is to save you money.
We’ve helped over 30,000 businesses find a loan – our Trustpilot scores and reviews demonstrate how happy our customers are with our service.
Can a bridging loan be used as a replacement for a mortgage in Scotland?
A bridging loan is not a mortgage but works in a similar way, by securing a loan on property.. Scottish property law is unique and property purchases follow a set process that makes them more streamlined than the rest of the UK, meaning they advance to a legally binding stage more quickly.
Whilst a bridging loan would not be recommended as a long term replacement for a mortgage, it can cover the gap between a mortgage being arranged so a purchase can proceed.
Why are bridging loans in Scotland popular?
The popularity of bridging loans has risen due to their flexibility and speed. The bridging loan market has grown to become a £4.8bn industry as of 2022 and is continuing to grow. Taking a short-term bridging loan allows people to buy properties or fund purchases, for land or machinery, that mainstream lenders will not mortgage.
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Our recent bridging loans success stories
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Bridging Loan Secured for Quick Auction Purchase
Learn more about bridging loans:
- What is bridging finance?
- How do bridge loans work?
- What are the different types of bridging loan?
- How much does a bridging loan cost?
- Do you need a deposit for a bridging loan?
- Do you need a valuation for a bridging loan?
- What can you use a bridging loan for?
- What is the eligibility criteria for bridge financing?
- Is a bridging loan more expensive than a mortgage?
- What are the alternatives to bridging loans?
- Can bridging loans be used for auction purchases?
- What are the risks of taking out a bridging loan?
- How are bridging loan repayments structured?
- What happens if you can’t repay a bridging loan on time?
- Why is a bridging loan broker useful?
- Can you still get bridging finance if another lender has turned me down?
- What exit strategies will your lenders accept on bridge loans?
What is a bridging loan?
Bridging loans are short-term loans that are secured against property. They originated in the residential sector and have now become a popular choice for both private individuals and commercial investors who need fast access to funds to buy or renovate a property.
A bridging loan is a type of short-term loan which is arranged for 1-18 months and is used to provide a fast cash injection while waiting for other funds.
They are a form of property finance that is used to bridge the gap between 2 events happening, such as purchasing one property, and another being sold.
Bridge loans, also known as bridging finance, were first offered in the 1960s by large banks and building societies to fund property purchases before the borrower’s existing property was sold.
Bridging loans are now a very popular form of finance and are offered by a wide range of specialist lenders such as Together Money, United Trust Bank and Shawbrook Bank.
How do bridging loans work?
A bridging loan provides fast access to funds, often used for property purchases or refinancing. The loan is issued as a lump sum and is set for a fixed duration, typically ranging from 1 to 18 months. At the end of this period, the full loan amount, along with any accrued interest and fees, must be repaid.
Interest on bridging loans is usually calculated on a monthly basis and becomes payable at the loan’s conclusion. This is known as ‘retained interest,’ meaning there are no ongoing monthly repayments. Instead, the total interest is often calculated in advance and deducted upfront. This structure makes bridging loans appealing to those who need immediate financing without additional financial commitments throughout the term.
Lenders require a well-defined repayment plan, known as an ‘exit strategy,’ which commonly involves selling a property or securing a remortgage. The ability to repay the loan is a key consideration for lenders and is assessed based on the loan-to-value (LTV) ratio and the equity available in the property (i.e., the property’s value minus any existing secured loans).
There are two primary types of bridging loans:
- Closed Bridging Loans: These have a predetermined end date, making it easier to estimate total interest costs. With no monthly repayments, they are typically considered lower risk and are favored by most borrowers.
- Open Bridging Loans: These do not have a fixed term, meaning interest accumulates over time and cannot be deducted in advance. Borrowers must demonstrate their ability to cover monthly interest payments, making the application process more complex. Due to the increased risk, open bridging loans tend to be more expensive.
Lenders evaluate eligibility by considering the LTV ratio and available property equity. Most lenders offer up to 75% LTV for regulated bridging loans. For unregulated loans—those not governed by the Financial Conduct Authority (FCA)—some lenders may extend this to 80%. However, second-charge bridging loans (where another loan is already secured against the property) typically come with lower LTV limits.
Throughout the loan term, the lender places a legal charge on the property, granting them a financial interest. This charge is lifted once the loan is fully repaid, often through property sale or remortgage. Having a clear repayment plan is essential to reduce risks and ensure timely loan settlement.
Bridging loans provide a rapid and adaptable financing solution, particularly for property-related transactions. However, careful planning is required—especially regarding repayment—to ensure the loan remains manageable. Closed bridging loans are generally a more secure and cost-effective option, offering greater transparency on interest costs and repayment timelines.
You can learn even more about bridging loans by watching our bridging loans video below:
What are the different types of bridging loan?
There are several types bridging loan, they are:
Closed Bridging Loan
Closed bridging loans have a fixed repayment date and set interest rates, making them lower risk for lenders. They are ideal when a property sale date is confirmed. With a fixed term, interest is typically added to the loan, avoiding monthly repayments.
Open Bridging Loan
Open bridging loans lack a defined exit strategy and have longer loan terms. As they carry higher risk for lenders, they are more expensive, with monthly interest payments required instead of rolled-up interest. Borrowers must demonstrate affordability, and underwriting may take longer due to additional checks.
First Charge Bridging Loan
Secured solely against your property, first charge loans apply when no other secured debt exists, such as a mortgage. These loans are often FCA-regulated, offering borrower protection but less flexibility. Rates are typically lower than for second charge loans.
Second Charge Bridging Loan
Secured against properties with an existing mortgage, second charge loans often need first charge lender consent, although equitable charges can bypass this. Rates are generally higher than first charge loans but may still be cost-effective if the first loan has favourable terms.
Regulated Bridging Loans
These loans, secured on your home, are FCA-regulated and provide enhanced consumer protection. They are typically limited to 75% of the property’s value.
Unregulated Bridging Loans
Used for investment properties or business purposes, unregulated loans are popular with property investors due to their flexibility.
Commercial Bridging Loans
These loans are secured against commercial properties, offering quick funding for commercial activities. A business finance loan may be a better option depending on the purpose.
How much does a bridging loan cost in Scotland?
Bridging loan costs vary depending on your circumstances and choice of lender, although interest rates can be as low as 0.5%. It’s worth noting that there are a number of fees that are added to a bridging loan and these should be included in your estimate when you are comparing products.
Use our free bridging loan calculator to get an estimate of what your costs would be.
Bridging loan fees
A bridging loan is a legal arrangement where a ‘charge’ is placed on a property giving a lender an interest in the property. This means that if you default on payments a lender will be able to sell the property to recoup their money.
In addition to interest payments for the loan, you can expect to pay arrangement, exit, administration, valuation and legal fees.
Many lenders will expect you to use a solicitor, see our in depth guide on this here, and you will have to pay their legal fees.
Always keep in mind the total cost of an arrangement and any hidden fees. Using a broker and taking legal advice will minimise any nasty surprises.
Do you need a deposit for a bridging loan in Scotland?
Yes, most bridging loans require a deposit. Lenders typically offer a maximum loan-to-value (LTV) ratio of around 75%, meaning borrowers are generally expected to contribute 25-40% of the property’s value. This deposit helps minimize the lender’s risk and ensures the borrower has a financial commitment to the project.
The required deposit amount can vary based on factors such as the property’s type, market value, and the borrower’s financial standing. In some cases, lenders may accept alternative security—such as another property—in place of a cash deposit, which can reduce the upfront financial burden.
A larger deposit can increase the likelihood of loan approval and may also help secure more favorable interest rates. Borrowers should discuss deposit requirements with their lender early in the application process to understand their specific obligations.
Do you need a valuation for a bridging loan in Scotland?
Yes, a valuation is typically required when applying for a bridging loan. Lenders use the valuation to determine the property’s market value, assess risk, and ensure the loan amount aligns with the property’s worth. It also helps establish the loan-to-value (LTV) ratio, which influences loan terms and interest rates.
A qualified surveyor usually conducts the valuation, and the borrower is responsible for covering the cost. In some instances, lenders may accept an existing valuation report, provided it meets their criteria and is relevant to the property type.
If you’re considering a bridging loan, it’s advisable to check the lender’s specific valuation requirements early in the process to avoid delays.
What can a bridging loan be used for in Scotland?
Bridging loans are flexible and can support a range of commercial opportunities, particularly in relation to developing property.
Buy, refurbish, refinance and rent
The buy, refurbish, refinance and rent (BRRR) model is popular. This involves using a bridging loan to buy and refurbish a property, then refinance it at a lower rate and rent it to gain an income that will exceed mortgage payments.
Buying a property before your current home has been sold
This is a very common reason for a residential bridging loan and allows homebuyers to proceed with a purchase whilst they are waiting to sell their home. As house sales in Scotland can move swiftly a bridging loan can help secure a property whilst you sell your own home.
Fixing a broken property chain after a sale falls through
If your house purchase is part of a chain and a sale falls through, a speedy bridging loan can ensure that you have the funds to buy your new property. This option is much less likely in Scotland owing to property law that involves the exchange of formal letters, known as missives, between the buyer and seller’s solicitors. The legally binding stage of a property sale in Scotland comes much earlier in the process than in the rest of the UK.
Buying a property at auction
Often distressed properties that are unmortgageable owing to their condition can be purchased at a discount at auctions. When a property is bought at an auction the sale must be completed within 28 days and this is an added reason to look for a quick finance solution.
Investing in a buy-to-let property
Similar to renovation projects, a buy-to-let property may need work before it can be rented to tenants to generate income. A mortgage lender will not provide a buy-to-let mortgage until the property is in a suitable condition and this can include ensuring safety features, such as fire doors, are in place.
Taking a short term bridging loan to bring a property up to the required standard to achieve a buy-to-let loan is a common practice. A bridging lender would expect to see an exit plan that involved getting a long term mortgage to pay the bridging funds.
Land purchase
Much is written about bridging loans and property, however, they can also be used to purchase land with the intention of applying for planning permission. Once planning permission is granted you could refinance with development finance to provide funds for a build.
What is the eligibility criteria for a bridging loan in Scotland?
To apply for a bridging loan you will need to be 18 or over and a UK resident. You will also need to provide proof of income, bridging loan lenders in Scotland commonly accept:
- Payslips
- Bank statements
- Tax returns
- Property income (demonstrated through bank statements)
You will need to provide detailed information about the property you intend to use as security, or a clear business plan for land or property development.
Financial history is less of a concern to lenders as compared to a mortgage in Scotland as interest is, in most cases, paid at the end of the loan period and secured on a property.
Bridging loans are unlikely to be offered to those over 85 years old, however, there are other options available if you are looking to secure finance against property. Our friendly team can help guide you through the options, request a free callback for a no obligation quote.
There are many different reasons for securing a bridging loan and no one-size fits all, with our range of specialist lenders we can help most people find a loan.
Is a bridging loan more expensive than a mortgage?
Yes, a bridging loan is generally more expensive than a mortgage due to its short-term nature and higher risk to lenders.
Bridging loans typically involve higher fees, such as arrangement fees (1% to 2% of the loan amount) and exit fees, which are less common with standard mortgages. The cost reflects the speed and flexibility of bridging finance, often approved within days for time-sensitive needs like property purchases or renovations.
While more expensive, bridging loans are designed for short-term use, making their higher costs manageable if repaid promptly. Borrowers should compare options carefully and factor in all fees to determine affordability.
What are the alternatives to bridging loans in Scotland?
There are a number of alternatives to bridging loans each with their own advantages and disadvantages, here are some other options to consider:
Mortgages
A mortgage is a long term loan secured on property. A bridging loan is not a type of mortgage although both products have similarities as they use property as collateral.
Mortgages are more appropriate for longer term needs and tend to come with lower interest rates, whereas bridging loans are short term arrangements. It is unlikely you would be able to get a mortgage on a property that needed substantial work or development, whereas bridging loans can be used for development purposes.
For a detailed breakdown, read our guide to bridging loans vs mortgages.
Buy-to-let mortgage
A buy-to-let mortgage is a loan is a type of finance used to purchase rental properties that will be let out to paying tenants. This type of mortgage typically has longer repayment terms than bridging loans and lower interest rates.
The benefit of a buy-to-let mortgage is there is no need to sell your existing property to secure the loan, and the income from tenants will cover mortgage repayments on your investment.
Remortgaging and equity
Remortgaging is a popular option and this involves switching to a new lender or renegotiating the terms of your loan with your existing lender.
In some cases, the value of your property will have increased since you took the original mortgage giving you more equity, which is the amount your house is worth minus the amount you owe. Increasing your equity means that your mortgage lender may allow you to borrow more. Even if the value of your property hasn’t changed, it is worth discussing options with your mortgage lender as they may be able to offer some flexibility and potential options for you as an existing customer.
Second-charge mortgage
A second-charge mortgage is a loan secured on your property, it is separate from your main, or first, mortgage and funds are provided by a different lender. As your property is used as collateral if you default on either mortgage your home could be repossessed.
Equity is important for a second-charge mortgage as lenders will want to make sure that if you defaulted on payments the sale of your property would cover both mortgages.
Equity release mortgages
Equity release mortgages are often synonymous with people of retirement age and you will need to be aged over 55 to qualify for this option. This financial product allows homeowners to borrow money against the value of the property and continue to live in the property until it is sold. When the property is sold the loan will be repaid with interest.
Commercial mortgages
Commercial mortgages are a long-term financial product, with repayment terms up to 25 years, secured on a property that is not where you live.
Ordinarily commercial mortgage rates will be significantly lower than bridging loan rates, however, if you do decide to pay a mortgage back earlier than agreed there may be early repayment fees. If you would like the flexibility to pay your mortgage back earlier, or overpay, then speak to your mortgage broker to match you with a lender that offers early repayment options.
Interest payments on commercial mortgages are tax deductible and so this can help reduce taxable income and, in turn, liabilities.
Asset Loans
Asset loans describe a category of financial products and services that help businesses and individuals secure funding based on the value of their assets. Using assets as collateral negates the need for using property.
Personal or small business loans
Small business loans are one of the main finance options used by startups and small businesses. This type of loan is quite straightforward with funding provided by a lender, often a mainstream bank, that is paid back over an agreed period with interest.
Unsecured and secured loans
Unsecured loans are often shorter term arrangements and a type of credit that isn’t secured by assets such as property or stock that could be sold in the event of a default. Lenders will assess the creditworthiness of a business and the likelihood that they will be able to pay back the loan.
This type of loan is considered to be higher risk as the lender does not have certainty the payments could be met, or that they will receive their money if the business defaults on the arrangement. Unsecured loans ordinarily have higher interest rates than secured loans.
A bridging loan is an example of a secured loan. Secured business loans are based on assets or ‘collateral’ so the lender will have confidence that monies can be recouped if the business defaults on payments. Often assets such as property, or merchandise are used to secure loans.
Interest rates on secured loans are often lower as there is a guarantee that the lender will get their money back; however, with long term secured loans interest rates can be higher as a lender is tying up funds for a long period.
Invoice finance and factoring
Invoice finance and factoring allows you to use your outstanding invoices to secure financing, typically 80-90% of monies due. Factoringis where a lender will pay you directly and take ownership of the invoices, they will collect the payment and settle any remaining amounts. With invoice factoring the lender will take a fee for providing the service or a percentage of the invoice amounts.
Development finance
Development finance loans are short to medium term loans designed for significant property refurbishments or developments, and are based on the projected value of the completed works. This type of finance can be costly as it is often used for large and complex projects by property investors.
Negotiating with an existing lender
A bridging loan can be used to repay your mortgage, with the interest added to the loan, leaving you with no monthly repayments to make. This can be useful if you’ve run into difficulties with your current mortgage provider and are in arrears. A bridging loan could pay off your mortgage whilst you seek an alternative arrangement, such as the sale of a property or a new mortgage.
Many lenders will be keen to avoid last-resort actions and have specialist teams to help those in debt, with a range of options. If you are experiencing difficulties then contact your lender as soon as possible to outline your situation.
Fast house buying companies
Fast house buying companies can be used to release equity from a property quickly. The key difference is bridging finance allows you retain ownership of the property, whereas quick house sale companies are purchasing the asset from you.
It is important to note that fast purchases companies usually offer no more than 75% of your property value, meaning they make a considerable profit on the property.
Can bridging finance be used for an auction purchase in Scotland?
Yes, bridging loans are a popular financing option for property investors and developers looking to buy at auction. Their fast approval process and quick access to funds make them ideal for auction purchases, where a swift completion is essential.
If you’re using a bridging loan for an auction purchase, having a well-defined exit strategy—such as refinancing or selling the property—is crucial to ensure the loan is repaid within the agreed timeframe.
Working with a credit broker or bridging loan specialist can provide valuable insights and help structure the financing to align with the auction’s requirements.
Bridging loans for an auction purchase is known as auction finance.
What are the risks of taking out a bridging loan?
While bridging loans provide quick access to funds, they come with several risks, including:
- High Interest Rates: Due to their short-term nature and higher risk, bridging loans typically have higher interest rates than standard mortgages, leading to substantial repayment costs.
- Short Repayment Terms: Most bridging loans must be repaid within 12 months. If the borrower cannot repay or refinance in time, they may face penalties, increased costs, or even legal action.
- Property Risk: If the loan is secured against a property, failure to repay could result in the lender repossessing the asset.
- Exit Strategy Uncertainty: If the intended exit strategy—such as refinancing or selling the property—fails or is delayed, the borrower may struggle to repay, leading to financial difficulties.
- Over-Valuation Concerns: If the secured property is over-valued, it may not sell for enough to cover the loan, increasing the risk of financial loss.
To mitigate these risks, thorough planning, a realistic exit strategy, and a clear understanding of the loan terms are essential before committing to a bridging loan.
How are bridging loan repayments structured?
Bridging loan repayments in the UK are structured to offer flexibility, accommodating various financial situations and objectives. Repayment methods typically include:
- Monthly Interest Payments: Borrowers pay interest monthly during the loan term, with the principal repaid at the end. This approach requires evidence of income and an affordability assessment.
- Rolled-Up (Deferred) Interest: Interest accrues over the loan term and is paid in full upon loan completion, eliminating monthly payments. This is beneficial when the financed property isn’t generating immediate income.
- Retained Interest: Interest for the entire loan term is deducted from the loan amount upfront, with the borrower receiving the net sum. Both interest and principal are repaid at term’s end.
The most common repayment structure for a bridging loan is rolled-up interest, This option is popular as it eliminates monthly payments, making it ideal for borrowers with no immediate cash flow, such as during property renovations or developments.
The chosen repayment structure should align with the borrower’s exit strategy, such as property sale or refinancing, to ensure timely loan settlement.
The most common repayment method for a bridging loan is through the sale of property. Borrowers typically use the proceeds from selling the property being financed or another asset to repay the loan in full. This is especially prevalent for short-term property purchases, auction acquisitions, or renovations intended for resale.
Alternatively, repayment can be made via refinancing, where the borrower secures a long-term mortgage or another financial product to replace the bridging loan. This method is often used when the property is intended for long-term use rather than sale.
Both options require a clear exit strategy, which lenders evaluate during the application process to ensure the borrower can meet repayment terms.
What happens if you can’t repay a bridging loan on time?
Failing to repay a bridging loan on time results in default, which can lead to:
- Penalty Fees & Increased Interest Rates: Many lenders impose higher interest rates and additional charges once a loan enters default.
- Legal Action: The lender may take steps to recover the debt, including repossessing and selling the property or other secured assets.
- Credit Score Impact: A default can negatively affect your credit rating, making it harder to secure future financing.
What Should You Do If You Can’t Repay?
If you anticipate repayment difficulties, contact your lender immediately. Some lenders may offer solutions such as:
- Extending the Loan Term: This can provide extra time to arrange refinancing or complete a property sale.
- Restructuring Payments: Some lenders may allow temporary adjustments to ease financial pressure.
- Negotiating an Alternative Exit Strategy: Exploring other ways to settle the loan, such as securing additional financing or selling a different asset.
To minimise the risk of default, ensure you have a clear exit strategy before taking out a bridging loan and maintain open communication with your lender about any potential delays.
Why is a bridging loan broker useful?
A bridging loan broker plays a key role in securing the best loan terms by:
- Accessing a Wide Range of Lenders: Brokers work with both mainstream and specialist lenders, some of whom may not deal directly with borrowers.
- Saving Time & Effort: They compare multiple loan options, helping you find competitive rates and terms without the hassle of researching lenders yourself.
- Negotiating Better Deals: Brokers can often secure more favourable interest rates, lower fees, or flexible terms based on their industry relationships.
- Streamlining the Application Process: They handle paperwork, liaise with lenders, and ensure all requirements are met, increasing the chances of fast approval.
- Providing Expert Guidance: With their knowledge of the market, brokers help tailor loans to your specific needs and advise on exit strategies to minimise risk.
Using a bridging loan broker can simplify the process, reduce costs, and improve your chances of securing the right loan for your situation.
Can you still get bridging finance if another lender has turned me down?
Yes, it’s possible to get bridging finance after being turned down by another lender. Each lender has unique criteria, so rejection by one doesn’t mean all will decline. Common reasons for refusal include poor credit history, insufficient security, or unsuitable property types. However, some lenders specialize in higher-risk cases or unconventional properties.
To improve your chances, address the reasons for rejection. This might involve offering additional security, a detailed repayment strategy, or working with a specialist broker who can connect you with lenders catering to unique circumstances.
What exit strategies will your lenders accept on bridging loans?
When you’re looking to raise funding on a residential property, commercial property or even land, most lenders will consider various exit strategies (how you plan to pay back the loan).
Common bridging loan exit strategies include:
- Sale of shares
- Sale of the primary property
- Sale of other investments
- Refinance your bridging loan to a longer-term mortgage
- Sale of a secondary property
- Inheritance
Talk to Lee about bridging loans financing in Scotland
If you’d like to find out how ABC Finance can help you finance any type of bridging loan quickly, get in touch with Lee today.
Lee Hemming is a specialist bridging loan advisor at ABC Finance with years of experience arranging the right finance solutions for our customers. Call, email or contact ABC Finance today to learn more.
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Quick loans to rescue a buying chain or purchase your dream home.
Loans to bridge the gap between buying and selling a house.
Fast financing of £10k to £250m in as little as 3 days.
Loans for purchasing a property to refurbish and sell.
Learn more about bridging loans
Can I Refinance A Bridging Loan
Can You Repay A Bridging Loan Early?
Bridging loan alternatives
Three Things To Consider Before Taking Out A Bridging Loan
The Importance of an Exit Strategy
