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Compare bridging loans

If you need short term finance to fund the purchase of a new property, a bridging loan could help. Compare lenders that offer the lowest interest rates for the loan amount and term you need.

  • Compare bridging loans from leading providers
  • View terms, rates and repayments
  • Our service is simple, reliable, and free of charge

Compare bridging loans from leading providers

Looking through a range of options gives you more chance of securing a great deal. You'll only find results from genuine companies. Our data experts check each company before we add them to our comparisons.

Octane Capital
MT Finance
Affirmative
Tuscan Capital
Goldcrest
TAB
Precise Mortgages
Amicus
Lowry Capital
Mint Property Finance

How to compare bridging loans

1

Work out how much you need

Calculate how much you need to borrow and how long you need to repay the loan based on how much you can afford to pay every month.

2

Compare your options

Compare bridging loan deals from different providers and check any conditions of the loan. Then pick a deal that offers the cheapest bridging loan with the lowest interest.

3

Apply for the loan

Fill out a bridging loan application with your contact and financial details. The lender will then assess whether you can afford the loan. If you can, they will arrange the finance.

Bridging loan deals

Think carefully before securing other debts against your home. You home may be repossessed if you do not keep up repayments on your mortgage or any other debt secured on it.

26 results found, sorted by lowest monthly interest rate. How we order our comparisons.
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United Trust Bank Bridging Loan
Maximum LTV
1st charge: 75% & 2nd charge: 70%
Loan term
1 month to 3 years
Loan amount
£125,000 to £25,000,000
Monthly interest rate
0.48% to 1.1%
United Trust Bank Bridging Loan
You will need to pay a 2% arrangement fee when you take out this bridging loan.
This loan is regulated.
Eligibility
Available On Properties In England
Available On Properties In Scotland
Available On Properties In Wales
Minimum Loan£125,000
Maximum Loan£25,000,000
Minimum Property Value£150,000
UK Residents
Ortus Secured Finance Bridging Loan
Maximum LTV
70%
Loan term
1 month to 2 years
Loan amount
£100,000 to £25,000,000
Monthly interest rate
0.65% to 1.25%
Ortus Secured Finance Bridging Loan
You will need to pay a 2.5% arrangement fee when you take out this bridging loan.
Eligibility
Available On Properties In England
Available On Properties In Northern Ireland
Available On Properties In Scotland
Available On Properties In Wales
Minimum Loan£100,000
Maximum Loan£25,000,000
Minimum Property Value£125,000
UK Residents

We are classed as a credit broker for consumer credit, not a lender.

Our services are provided at no cost to you. We may receive a commission from the companies we refer you to, but this does not affect what you will pay for the product you choose.

Compare another type of bridging loans

Representative example for regulated bridging loans

Based on borrowing£158,000 over 1 yearThe overall cost of comparison11.6% APRC representative
Interest rate8.30% fixed for 1 year (12 instalments of £1,127.75 pm)Broker fee£995
Lender fee£3185Total amount payable £171,533.00 inc. interest of £13,533.00

What is a bridging loan?

Bridging loans, which are sometimes called "bridge loans", span a gap in your finances. This usually occurs when you need to pay for something but are still waiting for funds to become available.

They're often used by people buying a property while waiting for the sale of their existing home to go through. A mortgage bridging loan allows them to borrow the money required for a short time.

Like mortgages, bridge loans are a form of secured borrowing. This means you have to have a high-value asset to get one, such as property or land.

Find out more in our guide to bridge loans.

How does a bridge loan work?

There are two types of bridge loans:

Open bridging loan

These have no set end date. This means they can be repaid whenever your funds become available. They usually last for up to a year, and sometimes even longer.

Closed bridging loan

These have a fixed cut-off based on a date when you know you will have the funds required to pay back what you owe. Closed bridge loans are usually short-term, lasting just a few weeks or months.

What is a bridging mortgage?

A mortgage bridging loan is an example of a closed bridging loan. It can be used if you have exchanged contracts on a property but are waiting for your property sale to complete.

Open bridging loans are usually more expensive than closed bridging loans because they're more flexible. Whichever kind you choose, you need an "exit route", a way to repay your bridging finance.

Compare bridging loans for house purchases

What can you use a bridge loan for?

Bridge loan financing can be used in lots of ways. These include:

  • buying a property

  • property development

  • buy-to-let investments

  • business ventures

  • paying a tax bill

  • divorce settlements.

Residential bridge loan

Bridging loans are also becoming popular with people who are moving house. They're useful when you need a mortgage to buy a new property, but are waiting for the sale of your previous home to go through.

They are also used by property developers at auction. This is because developers often need to pay a deposit to secure their purchase at short notice.

If you have a business and need financing to move to a new office location, you might be interested in business bridging loans.

How to choose the best bridge loan

If you're thinking about taking out a bridging loan, it's best to compare offers from several providers to find a deal that suits you. Ask yourself:

How much do you want to borrow?

Lenders offer bridging loan financing from £5,000 up to £25 million.

How much is your property worth?

This affects how much you can borrow and the interest rate on the loan.

How long do you need the loan for?

A bridging loan can last from one month to two years.

Do you have a mortgage on your property?

An existing mortgage affects how much you can borrow with a bridging loan. It also dictates whether it's a first- or second-charge loan.

What are first charge or second charge bridge loans?

When you apply for bridging finance, the lender adds a "charge" to the property you're using as collateral. These charges determine which debts are prioritised if you can't repay a loan. If a property is seized and sold to pay off outstanding debts, a first-charge loan is settled ahead of a second-charge loan.

A first-charge loan is the first or only borrowing secured against a property. Mortgages are typically first-charge loans. But if you have no mortgage or outstanding borrowing on your property, a different kind of loan – like a bridge loan – can be set up as a first-charge loan.

Second-charge loans are used when there's already a loan or mortgage secured against the property. Second-charge lenders usually need permission from the first-charge lender before they can use the property as collateral.

There's no limit to the number of charges that can be registered against a property.

How much can you borrow with a bridge loan?

It depends on your credit rating and the value of the property you're using as collateral. The maximum a bank will typically lend for bridging finance is £25 million, although some specialist providers may offer even more. The lower end of the range is around £5,000.

How much do bridging loans cost?

Bridging loans interest rates tend to be high – often between 0.4% to 2% – and are typically calculated on a monthly rather than an annual basis. This makes bridging loans an expensive way to borrow money.

What's more, because bridge loans typically charge monthly interest, a small change in the interest rate can have a significant impact on your overall cost of borrowing.

That said, interest is not always charged monthly. There are actually three different ways interest may be charged:

  • monthly: you pay the interest monthly; it's not added to the original sum borrowed

  • deferred or rolled-up: you pay the interest at the end of the loan; there are no monthly interest payments

  • retained: you borrow the interest for an agreed period, and pay it all back at the end

Some lenders let you combine these options. For example, you could choose retained interest for the first six months and then switch to monthly interest.

Don't forget there are lots of other fees and charges that you have to pay on top of the interest. Check the costs carefully before you go ahead.

Salman Haqqiquotation mark
Bridging loans can be an expensive way to borrow money, and are thus meant for very specific circumstances. Make sure you have a solid exit strategy. Take a close look at your finances, and be realistic about how long you will need it for and how much it will cost.
Salman Haqqi, Personal Finance Editor

Bridge loan fees

Interest isn't the only cost on bridging finance. Bridge loan costs can include several types of fees. These are:

  • Arrangement or facility fee: What you pay for setting up the bridge loan. It's usually around 1 to 2% of the loan.

  • Exit fees: This is usually around 1% of the bridge loan if you pay it back early. Not all lenders charge an exit fee.

  • Administration or repayment fees: This is what you pay for the paperwork to be completed at the end of your bridging finance.

  • Legal fees: This pays the lender's legal fees. It's usually charged at a set rate.

  • Valuation fees: This pays for the surveyor to value your property.

  • Broker fees: If you use a broker, this pays for their work in looking at bridging loans for you and choosing the best bridge loans for you.

There might be other fees too, so bear this in mind before you decide if bridging finance is right for you.

What is APR?

APR (Annual Percentage Rate) is a type of interest rate offered by lenders and banks. It includes the interest rate of the product, but also takes into account any fees. Therefore it is generally best to look out for the advertised APR when comparing, so that you know exactly what you will be earning or paying.

APR must include all mandatory fees, however it does not include voluntary ones, even if they require an opt-out.

How to apply for a bridge loan

Here's a step-by-step guide on finding the best bridge loans and best bridging finance rates, and doing your application.

  • Decide how much do you need to borrow and for how long?

  • Calculate how much your property is worth and how much equity you have?

  • Use the comparison table above to compare bridge loans?

  • Decide whether you want to speak to a broker or apply online.

  • Pick the bridge loan deal you like and apply. Make sure to read the small print to find out about all the costs and fees.

How long does it take to get a bridge loan?

You'll usually find out if your application's been approved within 24 hours. Once your application's approved, the money could be in your account within two weeks.

Bridge loans for bad credit

Many lenders will still consider your application for bridging finance even if you have bad credit. But, as you're seen as a more risky customer, your loan might have a higher interest rate. This will make it more expensive. You're unlikely to be able to get the very best bridge loan rates if you have bad credit.

Bridge loan lenders

There are lots of different places you could get a bridge loan from. These range from major high street banks to small, specialist lenders. You'll see a list of the best bridge loans and compare bridging loans from different companies in the comparison table at the top of this page.

A broker could help you find the right bridging finance. They may charge a fee, but they'll probably be able to find you the very best bridging loan rates.

Pros and cons of bridge loans

As with most things, bridging loans have their advantages and disadvantages:

  • Application process is fast

  • You can borrow large amounts and that the borrowing is flexible.

  • You'll get the money pretty quickly.

  • Interest rates and fees are high

  • The loan is secured against your property.

  • You risk losing your home if you can't pay your bridge loan back.

Alternatives to bridging loans

Bridge loans are quite specialist in that you borrow money for a very short time. There are some alternatives to bridging finance, though. These include:

  • Second mortgage: You could look into getting a second mortgage.

  • Remortgage: You could remortgage your current home to free up some money.

  • Secured loan: Here's how secured loans work.

  • Personal loan: You could check if a personal loan could work for your needs.

  • Let to buy: If you want to buy a property and the sale of your first property falls through, a let to buy mortgage could be worth considering.

Bridging loan FAQs

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What happens if you are unable to pay back your loan?

When you miss a payment on your loan, you'll be charged a fee. You may be issued with a County Court Judgement or have to declare yourself bankrupt if you continue to miss payments.

What to expect if you can't payback your loan

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Last updated: 30 July 2022