Residential Bridging Loans

Home » Bridging Loans » Types of Bridging Loan » Residential Bridging Loans

BRIDGING LOANS MENU

How Does Residential Bridging Finance Work?

Residential bridging finance is a type of short-term bridging loan designed to ‘bridge’ a financial gap. It can be used as an alternative to a standard bank-backed mortgage which can benefit you when it’s necessary to act fast to secure or renovate a property in a short timeframe.

Applications are offered on an interest-only basis for up to 12 months, with the monthly interest usually either deducted from or rolled up into the loan.

Ask An Expert

Fill in the form below to talk through your requirements with an expert.

  • No broker fees

  • No upfront fees

  • Expert broker service

  • Market leading rates

  • Terms in 1 hour

Or call us now on 01922 620008

What Are The Latest Residential Bridging Loan Offers?

View some of the latest residential offers from leading lenders.

Product BL0003 - Apply Now
Interest Rate
0.47%
Lender Fee
1.00%
Max LTV
50%
Security Type
Residential
Min-Max Loan
£250,000 - £50,000,000
Max Term
12 Months
Regulated Accepted?
Yes
Product BL0004 - Apply Now
Interest Rate
0.48%
Lender Fee
2.00%
Max LTV
50%
Security Type
Residential
Min-Max Loan
£250,000 - £50,000,000
Max Term
12 Months
Regulated Accepted?
Yes
Product BL0011 - Apply Now
Interest Rate
0.63%
Lender Fee
2.00%
Max LTV
60%
Security Type
Residential
Min-Max Loan
£1,000,000 - £5,000,000
Max Term
12 Months
Regulated Accepted?
Yes
CLICK HERE TO COMPARE MORE MARKET LEADING PRODUCTS

Bridging Loan Criteria

Below are the main criteria points to consider when taking out residential bridging finance.

1Up to 75% Loan to Value (or 100% with additional security).
2Interest rates from 0.48% per month.
3Loans from £25,000 with no maximum loan size.
4Borrow from 1 month up to 12 months.
5Any security considered.
6Interest can be rolled into the loan.
7Loans with no early repayment charges available.
8We will consider any realistic exit route.

Which Residential Bridging Finance Options Are Available?

Taking out a short-term bridging loan against your own home start at interest rates of 0.48% per month for loans up to 50% loan to value (LTV). As a trusted broker that works closely alongside a panel of reputable lenders, we can offer loans at 75% LTV at 0.75% per month.

We can look at residential 1st and 2nd charge lending and can consider unusual security.

Where you have failed to repay a current bridging loan, we can also consider re-bridging loans.

How Much Can I Borrow?

We can offer residential bridging loans from £25,000 with no maximum loan size. The maximum loan is usually restricted by the LTV, with 75% LTV usually being the maximum. This will vary from lender to lender as their loan terms differ. In our role as an experienced broker, we can help to secure you the best deal – getting you the funding you need with a repayment plan that fits with your circumstances.

When Would You Take Out A Residential Bridging Loan?

There are a number of reasons to take out a residential bridging loan as opposed to a mortgage, some of the more common ones are:

  • To raise funds quickly for business or property investment opportunities
  • To extend the lease of your property before selling
  • To fund the refurbishment or extension of your home
  • To complete the purchase of a property at auction
  • To purchase a new property before your current home is sold
  • To raise the funds needed to pay your debts as they fall due, for example paying a petition for bankruptcy

The above are examples, although we can consider residential bridging loan applications for almost any situation.

Is Residential Bridging Finance Available To Anybody?

Although there are certain criteria that must be met, we can consider applications for people who are going through a period of bad credit. We have lenders available who are happy to ignore adverse credit subject to having a suitable exit strategy in place. You can learn more about this in our Bridging Loans For Bad Credit guide.

Is There Risk Involved With Residential Bridging Finance?

Yes, when securing borrowing against your home, there will always be risk involved. Should you fail to repay your bridging loan when due, your home may be at risk.

Failure to repay can result in repossession, which makes expert advice of vital importance when taking out residential bridging finance.

about-the-author-gary-hemming

About The Author

This content was produced by our Commercial Lending Director, Gary Hemming. Gary has over 15 years’ experience in financial services and specialises in bridging loans, commercial mortgages, development finance and business loans. He is widely respected in his field and regularly provides expert commentary for specialist trade publications, specialist business press as well as local and national press.

Gary Hemming CeMAP CeFA CeRGI CSP  -  
Commercial Lending Director

Want to Know More…?

Use the panels below to read more.