If you borrowed £195,000 over a 1-year term at 8.40% p.a. (fixed), you would make 12 monthly payments of £1,399.93 and pay £211,799.16 overall, which includes interest of £16,799.16, a broker fee of £995 and a lender fee of £3995.00. The overall cost for comparison is 11.6% APRC representative.
Bridging loan companies in the UK
Learn more about bridging loan companies that operate in the UK.
Bridging loans are a form of short-term finance for making property purchases. They’re often used to bridge a gap between a homeowner buying a new house and selling an old one, or to fund the purchase of an auction property which will be sold on soon afterwards. Banks and mainstream lenders don’t tend to offer bridging loans, so we rounded up the main players in the UK market.
Compare bridging loans and rates
If you borrowed £195,000 over a 1-year term at 8.40% p.a. (fixed), you would make 12 monthly payments of £1,399.93 and pay £211,799.16 overall, which includes interest of £16,799.16, a broker fee of £995 and a lender fee of £3995.00. The overall cost for comparison is 11.6% APRC representative.
A list of bridging loan companies
The following companies offer bridging loans. Below we have written a short summary for each one and the basics of the bridging loans that are on offer.
Greenfield Mortgages
Greenfield has been lending since 2009, and specialises in bridging loans. The company operates in England and Wales, offering loans of between £26,000 and £5 million. Maximum LTV is 70% and terms of up to 12 months are available. Funds can be released within seven days and there are no minimum income requirements.
LendInvest
Founded in 2008, LendInvest is a property finance company, with its loan book funded by big institutional investors. Its products range from buy-to-let mortgages to bridging loans, and you can apply to LendInvest through a broker or directly. Bridging loans go up to a maximum of £15 million and a 75% LTV.
Funding 365
Funding 365 is one of the UK’s largest independent bridging lenders, and has been in the market since 2013. It offers bridging loans of between £100,000 and £10 million, and an LTV of up to 75%. Its loan terms vary from 3 months up to 24 months, and you can contact this provider either directly or through a broker.
Masthaven Bank
It may have gained its banking licence in 2016, but digital bank Masthaven has actually been offering secured lending and bridging loans since 2004. You can only access Masthaven Bank’s bridging loans through a specialist broker (its website will direct you to a search for one in your local area). Bridging loans of up to £1 million are available for a term of up to 18 months.
Oblix Capital
Development and bridging finance specialist Oblix Capital was established in 2014. It offers different types of bridging loans, which range from £50,000 to £5 million in value, based on a maximum LTV of 75%. Oblix Capital has a focus on property developers and investors, and says that it can give a Decision in Principle on a bridging loan in three hours.
Octopus Real Estate
Active in the market since 2005, Octopus Real Estate provides both residential and commercial bridging loans through brokers. On the residential side, loans can go up to 70% LTV on a term of up to 23 months. It’s a similar story on the commercial side, with a maximum LTV of 70% on a term of up to 24 months, and a maximum loan value of £25 million.
Tuscan Capital
Tuscan Capital provides short-term bridging finance for properties in England and Wales. It only deals with unregulated, commercial bridging loans, so isn’t able to offer residential bridging loans to homeowners. It focuses on applications from brokers and investors, with loans starting from £150,000 up to a maximum of 75% LTV.
United Trust Bank
United Trust Bank is a specialist UK lender with a bridging loans division, which is broker-focused. The bank’s loans are available to individuals (there is no upper age limit), as well as to corporate and trust borrowers. It offers loans starting at £75,000 up to a maximum of £15 million, with a maximum LTV of 60%. Loans are available for properties in England, Scotland and Wales, on both a first and second charge basis, with interest calculated daily.
More guides on Finder
-
Hard money loans: Short-term finance in the UK
Learn everything you need to know about hard money loans – also known as bridging loans. Find out how they work, what they can be used for and their benefits and downsides.
-
100% bridging loans: How to get one
Read our in-depth guide to 100% bridging loans, including how bridging loans work, how to borrow 100% of the property’s value, how to get the best deal and the pros and cons.
-
Probate loans
We explain how probate loans can be a valuable tool for dealing with financial issues that can come up when dealing with someone’s estate.
-
Bridging loans with bad credit
In-depth guide to bridging loans if you have had credit problems in the past, including what lenders are willing to overlook and which are the most important factors.
-
Differences between open and closed bridging loans
In-depth guide to closed and open bridging loans, including what they are useful for, the differences in cost and the application process, and the pros and cons of each.
-
Buying property at an auction with a mortgage
Complete guide to buying at auction with a mortgage. Find out which types of properties could be unmortgageable and how to get your finances in place before the auction.
-
Regulated vs unregulated bridging loans
In-depth guide to regulated bridging loans versus unregulated ones and their pros and cons. When is a bridging loan regulated and how does this affect your application?
-
Buying repossessed property
How to buy a repossessed property and what the risks and benefits are. Plus, where to look for properties, buying at auction and issues to look out for.
-
Property auctions: All you need to know about purchasing at auction
The complete guide to property auctions, including how the process works and the checks to make on the properties you want to bid on.
-
Short term mortgages: Discover if they are the right option
Discover if a short term mortgage is a right option for you depending on your circumstances.