Choosing a Bridging Loan Provider

19 Jun 2020

Choosing a Bridging Loan Provider

Revolution Finance Brokers have created this guide to help you make an informed decision when choosing the best bridging loan provider for you.

Bridging loans are usually required quickly, so if time is of the essence and you need fast, professional advice to get your funding in place, give Revolution Brokers a call on 0330 304 3040.

Comparing bridging loan lenders

When taking out any form of financing, you need to know precisely what the costs and timescales are to ensure that you are applying to the right lending provider for you.

The essential factor is to be prepared before you apply - have your exit strategy in place, so your lender knows how you plan to repay the lending, and decide how much you need to borrow and for how long.

If you are comparing bridging loan lenders, think about:

  • What terms they are offering - these vary significantly between lenders.
  • What the interest rates and fees are - there can be lots of different costs involved, so you need to have a comparable quote to be able to understand which offer is most competitive.
  • How long the loan term is - these usually are from one month to two years, although some lenders will offer a bridge loan for up to three years.
  • What LTV you are borrowing at - while you can borrow up to 100% LTV (100% of the value of the property), different lenders will have different LTV caps usually around 70-75%.
  • Which lenders are right for your project? If you need a bridging loan for a development project, your experience will dictate which lenders are most suitable to apply to.

 

Finding the best bridge loan providers

The most effective way to ensure that you are applying to the right bridging loan provider is to use a professional broker.

As experienced brokers in the world of bridging finance, Revolution Brokers know what products are available, what terms can be negotiated, and which lenders are most likely to be able to consider your application.

We also understand that time matters and will work with you to complete the application process quickly, saving you time comparing costs and trying to work through the stages of the application.

Give us a call on 0330 304 3040 or email us at info@revolutionbrokers.co.uk, and we will work with you at every stage of the bridging loan application process.

Who are the best bridge loan companies?

The best lender for your loan depends on lots of factors - what you need the funding for, for how long, and how you plan to repay this.

While specialist lenders can offer the most attractive rates on the market, some high-street banks and mainstream lenders do offer bridge loans:

Lloyds Bank

Lloyds offer residential bridging loans, with the balance of the borrowing repayable when your existing home is sold. This can help to buy a new property while you are still waiting to sell your current home.

The bank also offers self-build mortgage products, in which case a bridging loan will be required. We always recommend using a broker to provide impartial advice about which bridging products are the most cost-effective.

Masthaven

This lender offers an LTV capped at 70% if the loan is a first charge over the property. For a second charge, they can lend up to 65%.

Loan terms range from 1-18 months and therefore are less suited to bridging loans required for a more extended period.

HSBC

HSBC only offer bridging loans to existing customers based in Hong Kong - there are no HSBC bridging products available to UK customers.

Precise Mortgages

This funding provider offers bridging loans starting from £50k for private applicants, and £25k for companies. Income considered as part of the affordability assessment must only be from the UK.

Oblix Capital

Oblix offers LTVs of up to 75% when a first charge on the property is available as security, and up to 65% for second charges. Their bridging loans are only available for up to 12 months, so are suited to very short-term requirements.

Shawbrook

These bridge loans are available up to a maximum 75% LTV, and for up to 24 months total. The minimum application value is £50k.

Greenfield Capital

This lender offers LTVs up to 70%, with a maximum loan term of 12 months and a minimum application of £25k.

You should be aware that the 2% arrangement fee is rather high, and therefore you should be cautious about paying substantial fees and arrangement costs.

Bridging loans through mainstream banks

Not all high-street banks offer bridging loans, and some banks such as Barclays and RBS only provide this sort of financing to existing clients of high net worth.

Bridging loans tend to be a more specialist product, and many banks do offer this sort of facility but only on enquiry - they do not advertise this type of borrowing. Examples include:

  • NatWest
  • Halifax
  • Nationwide
  • First Direct
  • Santander

Applying for a bridging loan

Whether you would like to research the most competitive rates on the market, or are keen to secure your bridging finance through a mainstream lender, using a broker is the best solution to speed up the process. Brokers can access the best rates, and provide a direct comparison of the products available.

This is because a broker has access to terms that are not offered on the open market, and can negotiate on your behalf to make sure your lending is suited to your requirements.

Revolution Brokers regularly negotiate bridging loans with the top UK lenders, including but not limited to:

  • TSB
  • Barclays
  • Bridging Loans Ltd
  • Together
  • Aldermore
  • Bank of Scotland
  • Bridging Finance 4 U
  • RBS
  • Ulster Bank
  • Wellesley Bridging Finance
  • Central Bridging
  • Bank of Ireland
  • KIS Finance
  • Capital Bridging Finance Solutions Ltd

Revolution Finance - the bridging loan experts

If you would like to secure the most competitive bridging loan at affordable rates, get in touch today.

With years of experience and a dedicated team of professional consultants, Revolution Brokers are on hand to get you the finance you need at the best rates and in the shortest lead times possible.

Contact us now to discuss your personal options, Revolution Finance Brokers specialise in commercial and residential finance in Essex, Kent, London and Hertfordshire.

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Almas Uddin

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The content included in our articles, blogs, web pages and news publications is based on information accurate at the time of writing. Note that policies and criteria can change regularly throughout the UK mortgage lending market, and it remains essential to contact the consultation team to receive up to date guidance. The information included on the Revolution Brokers site is not bespoke to any circumstances or individual application scenarios and therefore is not intended to be used as financial advice. The content we share is designed to be informative and helpful but cannot be relied upon to provide individual advice relevant to your mortgage requirements. All Revolution team members are fully qualified, trained and experienced to provide mortgage advice of an independent nature. We collaborate with lenders and providers who are regulated, authorised and registered with the Financial Conduct Authority (FCA). Should you require specific mortgage borrowing types, some products such as buy to let mortgages may not be FCA regulated. The Revolution team can provide further information about regulated and unregulated lending as required. Please remember that a mortgage is a debt which is secured against your home or property. Your home can be at risk of repossession if you do not keep up with the repayments or encounter any other difficulties in managing your mortgage borrowing responsibly. This also applies to any remortgage or home loan secured against your property, including equity release products.