Frequently Asked Questions
Answers to common questions about bridging loans, development finance, mortgages, and our services.
A bridging loan is a short-term, asset-backed lending facility designed to 'bridge' the gap between immediate funding needs and long-term financing solutions. They are secured against property with terms typically ranging from 1 to 24 months, with rates starting from 0.45% monthly.
Interest rates typically range from 0.45% to 1.5%+ per month depending on property type and risk level. Additional fees include arrangement fees (1-2%), valuation fees (£300-£1,500), legal fees (£1,500-£3,000), and broker fees.
Development finance provides funding for property development projects including new builds and refurbishments. Loan amounts range from £500,000 to £300 million with rates from 0.45% monthly. Funds are released in stages as construction progresses.
Typical completion ranges from 7 days for straightforward residential cases to 2-3 weeks for more complex situations. Same-day decisions in principle are available for most applications.
Common uses include property purchases (auctions, chain breaks, quick sales), development projects (refurbishment, planning gain), and financial solutions (inheritance tax, business cash flow, debt consolidation).
First charge loans have primary security over the property with rates from 0.45% monthly and up to 75-80% LTV. Second charge loans sit behind an existing mortgage with slightly higher rates and lower maximum LTV (typically 65%).
Multiply the loan amount by the monthly interest rate. For example, £500,000 at 0.65% = £3,250 per month. Then add arrangement, legal, and valuation fees for the total cost.
Credit scores are less important than with traditional mortgages. Many lenders will approve borrowers with poor credit, defaults, CCJs, arrears, IVAs, or even bankruptcies, focusing instead on property security value and exit strategy.
Personal documents include photo ID, proof of address, and bank statements (3-6 months). Property documentation includes property details, planning permissions (if applicable), valuation reports, title deeds, and insurance information.
Common exit strategies include property sale (open market or auction), refinancing onto a residential or commercial mortgage, or business-related exits such as cash flow improvement, asset sales, or alternative financing.
Yes. Auction finance is one of our specialities. Funds can be available within 7-14 days, with amounts from £25,000 to £50 million, up to 70% LTV, covering all major UK auction houses with completion well within the standard 28-day deadline.
Bridging loans can be secured against residential properties (houses, flats, buy-to-let, HMOs), commercial properties (offices, retail, industrial, hotels), and specialist properties (land, development sites, care homes, agricultural, listed buildings).
It depends on the property use. Loans secured against your main residence or a previously occupied family home are regulated by the FCA with stricter criteria. Investment and commercial properties are typically unregulated.
LTV is calculated as (Loan Amount / Property Value) x 100. Typical limits are: residential first charge up to 75%, commercial up to 70%, second charge up to 65%, and some larger loans up to 80%.
Yes. Development finance covers residential and commercial new builds, ground-up developments from land purchase, and permitted development conversions. Funds are typically released in stages as construction milestones are met.
Interest compounds monthly, property market fluctuations can affect your exit strategy, and sales can experience delays. Mitigate these risks with clear backup exit plans, conservative valuations, contingency funds, and professional guidance.
Our primary focus is all London boroughs, the South East, and Home Counties, with nationwide coverage across England, Scotland, Wales, and Northern Ireland for all property types.
Bridging loans range from £25,000 to £50 million. Development finance ranges from £500,000 to £300 million with no stated upper limit through private funding.
Access to 130+ specialist lenders, loans up to £50 million for bridging and £300 million for development, London market specialisation, rates from 0.45%, rapid quote generation, and no upfront fees on loans exceeding £1 million.