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Large Bridging Loans

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Large bridging loans explained

What is a large bridging loan?

A large bridging loan is a short-term, property backed lending facility for any amount over £1,000,000.

Of course, there is no set cut off for a large or small loan, but loans over £1m are generally considered large by almost all lenders.

What can a large bridging loan be used for?

What can a large bridging loan be used for?

These loans can be used for a number of reasons, including:-

Key product features

Key features

Max LTV Up to 80%
Interest rate From 0.43% per month
Charge types1st, 2nd & 3rd considered
Term1-36 months (maximum 12 months for regulated loans)
Interest typeAdded to the loan, deducted or serviced
Completion timescale5 days – 3 weeks

Criteria

  • Residential, commercial property or land acceptable
  • Available to individuals, partnerships, LLPs, Ltd companies, offshore companies, foreign nationals and pension funds
  • Minimum applicant age 18 years – no maximum age
  • Available in England, Scotland, Wales and Northern Ireland
  • Adverse credit accepted (on a case by case basis)
  • Loans from £25,000 with no maximum loan size

Large bridging finance criteria

Who can borrow?

We can lend to the following:

  • Individuals
  • Non-UK based individuals
  • Partnerships
  • Pension funds
  • Limited companies
  • Offshore companies

Loan term

We can offer any term from 1-18 months. When lending against your primary residence, your loan term will be limited to a maximum of 12 months due to regulated bridging loan rules.

Can you lend to borrowers with bad credit history?

Yes, we have a number of lenders who are able to offer lending to those with previous credit issues including defaults, CCJs, mortgage arrears, IVAs, bankruptcies and repossessions.

What can I borrow against?

  • Property acquisition
  • Care homes
  • Refinance
  • Property refurbishment projects
  • Housing developments
  • Planning gain applications
  • Hotel developments
  • Apartments (single or block)
  • Office blocks
  • Factories and industrial units
  • Leisure facilities
  • Land – with or without planning

How much can I borrow?

Do you have a maximum loan?

Unlike many providers, we can lend with no strict upper limit. Through our access to the whole market, including specialist lenders and private funding lines, we can fund your enquiry, no matter how large.

We consider anything over £1,000,000 as a large loan.

What loan to value (LTV) can you offer?

We can offer loans up to 75% loan to value (LTV). Where refurbishment will be taking place, we can usually also lend the cost of the works.

Where needed, we may be able to lend 80% LTV on larger loans, where required.

Large bridging loan rates & costs

What interest rate will I pay?

Our rates start at 0.43% per month, with rates between 0.43-0.65% being common. The rate charged depends on the security offered and the loan to value required.

Higher LTVs normally pay slightly higher rates, with applications at 50% LTV and below usually achieving the lowest rates.

What other fees are there?

When taking out a new loan, your application will usually be subject to fees, often including some of the following:

Lender arrangement fee – This fee is usually 1% of the loan amount for larger loans and is charged when the funds are released by the lender. This fee is usually added to the loan.

Lender exit fee – Some lenders charge an exit fee on their loans. This fee is usually between 1 month’s interest and 1.5%. On larger loans, we can usually avoid this fee altogether.

Broker fee – Many brokers charge a fee for their service, even on larger loans. We never charge a fee for large bridging loans.

Valuation fee – The valuation fee (also known as a survey fee) is a fee paid to a chartered surveyor of the lender’s choice. The cost can vary, and tends to vary depending on the value and type of security offered.

Legal fees – Borrowers pay both the lenders legal costs and their own. These fees vary depending on many factors, with the loan size and property value being a big driver.

Can I get a better deal if I’m borrowing more?

Yes, you’ll usually benefit from lower arrangement fees and may also achieve lower interest rates.

These points are usually negotiated individually.

Standard arrangement fees are usually 2% of the loan amount. This would usually come down to no higher than 1% on larger loans.

How to get a large bridge loan

Lenders

There are a lot of lenders in the bridging loan market, and each lender has their own niche. For larger loans, it’s important that you work with a lender who’s comfortable offering larger loans.

Although most lenders have high theoretical maximum loans, there can be a big difference in how comfortable they are at this level.

Working with a broker

A broker’s job is to secure you the best possible terms and to work with yourself and the lender to ensure that the application runs smoothly.

On larger loans, there is often a greater degree of negotiation that goes into an application. Working with a broker who is experienced in these things and has contacts to leverage to secure you a better deal can result in you getting a better deal.

We never charge fees on large bridging loans, but some brokers do – so be careful of paying out fees that add additional cost.

FAQs

How do large bridging loans differ from smaller loans?

There are a number of specialist lenders who offer larger loans, often to applicants with more complex personal circumstances.

Although most lenders will accept loans between £5-10,00,000, it may be better to use a lender who specialises in larger loans.

This is because this level of lending to one client can be seen as a large risk to some lenders and, as such, the process can become difficult.

As the size of the loan increases, the amount of due diligence required by the lender will generally also increase.

Regardless of the lender chosen, we will assign you with an expert who is experienced in dealing with larger loans to manage your application from start to finish.

You will be able to speak with your advisor from start to finish throughout the process. Where your planned exit route is refinance, they can also help with your remortgage application.

Do your funders have set criteria?

We work with numerous lenders, all of whom have different criteria for lending.

As the loans become larger, applications tend to be underwritten on a bespoke basis. If an application makes good business sense, we can probably lend.

How quickly can I draw down funds?

Large bridging loans tend to have an added layer of complexity due to their size. Even so, we are still usually able to complete these bridging loans in two weeks, where valuations are possible within that time.

If your application is particularly urgent, get in touch now and one of our specialist advisers will be able to get your application moving immediately.

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