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Bridging loan finance is popular for developers who need fast funding, with flexible terms. The Revolution team often receives inquiries about the maximum loan value, which depends on multiple factors!
In this guide, we'll summarise the core criteria for securing a larger bridging loan. To get an application started, contact the team on 0330 304 3040, or drop us a message to info@revolutionbrokers.co.uk.
Different lenders will all have policies about what they consider a large loan - there isn't any fixed cap on bridging finance, which can run into many millions.
The key is around the exit strategy - if you have a viable way to pay back the original loan, you can borrow up to any amount required.
Your exit plan needs to cover the loan's full value, plus the interest accrued, and typical options are to remortgage the property once development work is complete, or sell it on and use some of the proceeds to repay the bridge loan.
As we've seen, the risk depends on the exit strategy's stability, so if this is solid, then it isn't any harder to get a substantial size loan.
Lenders will risk assess every application, and if there is a low risk, the process is straightforward.
It might be harder to get a small bridging loan than a larger one! Most lenders have a minimum, starting at as low as £10,000 but more commonly up to around £50,000.
Again, it's all about risk! Generally, bridge loans require a deposit of around 30% or 35% - but if the risk factor is higher, you might need a deposit of up to 50%.
Should there be any risks, such as investing in a non-standard development property, you're likely to need a deposit at the higher end of the spectrum.
The best way to find competitive rates on bridging finance is to consult a whole-of-market broker.
New products and lenders come onto the market all the time, and it's essential to understand the lender's criteria before deciding who to apply to.
If you meet the below criteria, you are in a strong position to negotiate low-interest rates:
There are three different options:
There are indeed - bridging loans are commonly used in property investments for the rental market.
One of the best options can be to organise a bridge to let, whereby you have an agreement with the same lender to remortgage once the development work is complete.
Most buy to let bridge loans are available at a maximum of 75% Loan to Value, and the usual criteria apply for both the bridging finance and the buy to let mortgage.
Yes, bridge loans are available to businesses at similar rates as for individual applicants.
Some lenders will require a personal guarantee from the directors, and lenders are usually happiest to lend to Special Purpose Vehicle limited companies.
Not really - a whole-of-market broker can find you a deal pretty much anywhere in the UK! Some lenders will have minimum bridge loans available, so if you’re looking to borrow for a smaller value, it is vital to check which lenders offer smaller bridge loans.
There are fewer bridging lenders in Scotland and Northern Ireland, but it's always possible to find a regional provider through an experienced broker.
If you need a substantial bridging loan and need to find the most competitive rates available, contact business finance broker on 0330 304 3040 or email us at info@revolutionbrokers.co.uk.
Our teams have years of experience negotiating high value, short-term bridge finance and offer a fully independent, whole-of-market service.
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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.
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Ask us any question you might have, and one of our skilled consultants will come back to you as quickly as possible.
