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Frequently asked questions

FAQs

What is a bridging loan ?

A property bridging loan is "secured" against a property and is often used to bridge funding or financial deficits.

Bridging loans are generally utilised by property owners, investors, and developers to finalise on a property within a short time frame.

How much can I borrow with a bridging loan ?

The amount that you can borrow is dependent on your circumstances, but is mainly calculated on a loan-to-value (LTV) basis with a maximum LTV of 80% of the property value.

Multiple properties can be used as security to minimise the LTV if available. With additional security properties higher LTVs over 100% are achievable.

How long can I have a bridging loan ?

For FCA regulated bridging loans the term can vary from as little as 1 month, to maximum term of 12 months. Typically for non-regulated bridging loans (used for commercial purposes) you can borrow for longer periods up to 3 years.

We can also arrange open-ended (non-regulated) bridging loans which are available from a very select number of lenders.

How long does it take arrange a bridging loan ?

A typical turn-around time for a bridging loan would be 7-10 days.

This does however vary depending on the nature and complexity of the case. A decision in principle can usually be provided quickly within a couple of hours.

Why use a bridging loan broker ?

There are a great many specialist short-term lenders who offer bridging loans, each with their own requirements / criteria.

They all have different appetites for different sub categories of bridging, different geographic locations, rates, and criteria etc. Some only deal with commercial property, others only buy-to-let investments, whereas others will be able to offer bridging solutions for the property you live in, your main residence.

Primarily when your home is involved the lender must be able to offer FCA regulated bridging finance, and only a small section of the many lenders out there do this. Lender’s providing regulated bridging loans will usually require the borrower to use an FCA authorised broker such as EquiryOne Finance so that the appropriate advice can be provided by a professional FCA qualified advisor.

By using a finance broker like EquityOne Finance who have close working relationships with key lenders in the market, you can also help ensure you get a solution that best fits your exact needs, and at the latest competitive rate.

Are there any upfront fees with a bridging loan ?

No, you do not have to pay any fees up-front in order for us to provide you with funding terms at no obligation.

If the terms are acceptable and you wish to proceed you will then be asked to pay for survey fee at the outset, for the property to be valued.

What is the main advantage of a bridging loan ?

Time - Bridging loans can be used by people who want to circumvent property chains and the lengthy mortgage application process.

Customers can apply for a bridging loan and receive the money in one lump amount in as little as two weeks, rather than waiting weeks or months for a standard high street mortgage to go through.

What are the interest options?

There are broadly two methods of paying the interest on a bridging loan, defined as follows:

(1) Retained interest bridging loan - Make NO monthly payments with a retained interest bridging loan. The interest is added to the loan and paid at the end of the term when the loan is paid back. In most cases there are no early repayment penalities. If you redeem early any remaining interest is refunded.

(2) Serviced interest bridging loan - Making monthly interest payments is referred to as a serviced bridging loan. The interest payments are calculated form the gross loan amount which includes the lender's facility fee, which is usually 2%.

The large majority of bridging loans are taken out on a retained interest basis, and as such our bridging loan calculator displays results on the basis of retained interest.

What is a feasible exit route ?

The Bridging Loan's exit route simply refers to the source of funds that will pay the loan off at the end of the term.The exit funds will come from either the sale of a property, or via re-finance.

When the exit is from re-financing, this can be a longer-term property loan (residential mortgage, or investment mortgage such as a BTL mortgage), or any other legitmate source of funds such as inheritance, pension release, share dividend, or the sale of a different type of asset.

How much do bridging loans cost ?

Interest rates start from 0.39% per month, and depend on a number of factors including the nature of the security property, what the funds are being used for, and the overall loan to value.

In addition to the loan interest, bridging loans also incur an arrangement fee, a valuation fee, legal fees, and a number of other smaller fees such as telegraphic transfer fee, security release fee. These vary from case to case, but all costs are clearly shown before making any application. The majority of bridging lenders charge an arrangement fee which can range from 0.5% - 2%, and will depend on the loan size.

Do I need to prove my income to get a bridging loan ?

In most cases it is not necessary to provide proof of income (usually where the exit is from a property sale).

However, in cases where re-finance will be the exit we may have to demonstrate that the re-finance is achievable.

Do I make monthly repayments with a bridging loan ?

No, you will not be required to make monthly payments

The interest on most bridging loans is 'rolled-up' or 'retained' and paid off when the loan redeems.

Are we FCA authorised ?

Yes, EquityOne Finance Limited is authorised and regulated by the Financial Conduct Authority’/p>

Our FCA Permission Number is 733649, and this can viewed in the Financial Services Register on the FCA website.

Can a bridge be in a company name ?

Yes, we can arrange bridging loans for Companies, including SPVs and off-shore companies.

Can I pay off a bridging loan early ?

Yes, you can pay off a bridging loan early.

Any interest that was calculated for the full term of the loan (beyond the point that you pay it off) will be refunded to the loan. This means that you only pay interest on the period that you had the loan outstanding.

If I’m retired can I still get a bridging loan ?

Yes you can, while some lenders have a maximum age limit many have no maximum age for bridging loans. Often lenders do not need to assess affordability for bridging loans, but if they do, a wide range of income sources can be considered including pension income.

If I’m self-employed can I get a bridging loan ?

Yes, self-employed people can obtain bridging loans and the rates are usually no different to employed people with regular incomes. Self-employed individuals will usually be required to provide at least 12 months of trading history.

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What is a bridging loan ?

A property bridging loan is "secured" against a property and is often used to bridge funding or financial deficits.

Bridging loans are generally utilised by property owners, investors, and developers to finalise on a property within a short time frame.

How much can I borrow with a bridging loan ?

The amount that you can borrow is dependent on your circumstances, but is mainly calculated on a loan-to-value (LTV) basis with a maximum LTV of 80% of the property value.

Multiple properties can be used as security to minimise the LTV if available. With additional security properties higher LTVs over 100% are achievable.

How long can I have a bridging loan ?

For FCA regulated bridging loans the term can vary from as little as 1 month, to maximum term of 12 months. Typically for non-regulated bridging loans (used for commercial purposes) you can borrow for longer periods up to 3 years.

We can also arrange open-ended (non-regulated) bridging loans which are available from a very select number of lenders.

How long does it take arrange a bridging loan ?

A typical turn-around time for a bridging loan would be 7-10 days.

This does however vary depending on the nature and complexity of the case. A decision in principle can usually be provided quickly within a couple of hours.

Why use a bridging loan broker ?

There are a great many specialist short-term lenders who offer bridging loans, each with their own requirements / criteria.

They all have different appetites for different sub categories of bridging, different geographic locations, rates, and criteria etc. Some only deal with commercial property, others only buy-to-let investments, whereas others will be able to offer bridging solutions for the property you live in, your main residence.

Primarily when your home is involved the lender must be able to offer FCA regulated bridging finance, and only a small section of the many lenders out there do this. Lender’s providing regulated bridging loans will usually require the borrower to use an FCA authorised broker such as EquiryOne Finance so that the appropriate advice can be provided by a professional FCA qualified advisor.

By using a finance broker like EquityOne Finance who have close working relationships with key lenders in the market, you can also help ensure you get a solution that best fits your exact needs, and at the latest competitive rate.

Are there any upfront fees with a bridging loan ?

No, you do not have to pay any fees up-front in order for us to provide you with funding terms at no obligation.

If the terms are acceptable and you wish to proceed you will then be asked to pay for survey fee at the outset, for the property to be valued.

What is the main advantage of a bridging loan ?

Time - Bridging loans can be used by people who want to circumvent property chains and the lengthy mortgage application process.

Customers can apply for a bridging loan and receive the money in one lump amount in as little as two weeks, rather than waiting weeks or months for a standard high street mortgage to go through.

What are the interest options?

There are broadly two methods of paying the interest on a bridging loan, defined as follows:

(1) Retained interest bridging loan - Make NO monthly payments with a retained interest bridging loan. The interest is added to the loan and paid at the end of the term when the loan is paid back. In most cases there are no early repayment penalities. If you redeem early any remaining interest is refunded.

(2) Serviced interest bridging loan - Making monthly interest payments is referred to as a serviced bridging loan. The interest payments are calculated form the gross loan amount which includes the lender's facility fee, which is usually 2%.

The large majority of bridging loans are taken out on a retained interest basis, and as such our bridging loan calculator displays results on the basis of retained interest.

What is a feasible exit route ?

The Bridging Loan's exit route simply refers to the source of funds that will pay the loan off at the end of the term.The exit funds will come from either the sale of a property, or via re-finance.

When the exit is from re-financing, this can be a longer-term property loan (residential mortgage, or investment mortgage such as a BTL mortgage), or any other legitmate source of funds such as inheritance, pension release, share dividend, or the sale of a different type of asset.

How much do bridging loans cost ?

Interest rates start from 0.39% per month, and depend on a number of factors including the nature of the security property, what the funds are being used for, and the overall loan to value.

In addition to the loan interest, bridging loans also incur an arrangement fee, a valuation fee, legal fees, and a number of other smaller fees such as telegraphic transfer fee, security release fee. These vary from case to case, but all costs are clearly shown before making any application. The majority of bridging lenders charge an arrangement fee which can range from 0.5% - 2%, and will depend on the loan size.

Do I need to prove my income to get a bridging loan ?

In most cases it is not necessary to provide proof of income (usually where the exit is from a property sale).

However, in cases where re-finance will be the exit we may have to demonstrate that the re-finance is achievable.

Do I make monthly repayments with a bridging loan ?

No, you will not be required to make monthly payments

The interest on most bridging loans is 'rolled-up' or 'retained' and paid off when the loan redeems.

Are we FCA authorised ?

Yes, EquityOne Finance Limited is authorised and regulated by the Financial Conduct Authority’/p>

Our FCA Permission Number is 733649, and this can viewed in the Financial Services Register on the FCA website.

Can a bridge be in a company name ?

Yes, we can arrange bridging loans for Companies, including SPVs and off-shore companies.

Can I pay off a bridging loan early ?

Yes, you can pay off a bridging loan early.

Any interest that was calculated for the full term of the loan (beyond the point that you pay it off) will be refunded to the loan. This means that you only pay interest on the period that you had the loan outstanding.

If I’m retired can I still get a bridging loan ?

Yes you can, while some lenders have a maximum age limit many have no maximum age for bridging loans. Often lenders do not need to assess affordability for bridging loans, but if they do, a wide range of income sources can be considered including pension income.

If I’m self-employed can I get a bridging loan ?

Yes, self-employed people can obtain bridging loans and the rates are usually no different to employed people with regular incomes. Self-employed individuals will usually be required to provide at least 12 months of trading history.

Available up to ...

£ 50 m

All types of briging & development finance available from £50,000

Loan-to-value ...

80 %

100% LTV also available with additional security property

Rates from ...

0. 55 %

The very latest low bridging loan rates at  May 2024

Lowest bridging rates at May 2024

Trusted bridging solutions for all ...

✓  Independent ✓  Unbiased Independent & Unbiased ✓  FCA authorised ✓  CeMap qualified ✓  Latest products ✓  Competitive rates ✓  Whole of the UK

The experts, providing all types of Bridging loan ...

Providing all types of Bridging ...

All types of Bridging loan ...

   Chain-breaking / purchase before sale    Residential & commercial property    Refurbishments / conversions    Re-finance a bridging loan    Capital raising & cashflow    Inheritance, tax & probate    BTL Investment property    Development finance    All requirements considered ...

Excellent job, very efficient ...

5/5

“We would like to thank you for all your hard work. I realise we have been quite full on with the pressure of trying to redeem our mortgage within a week. We know that you have gone above and beyond your job role. I would like EQUITYONE to realise your worth. If I owned my own business I would definitely have you on my payroll. Excellent job, very efficient, working at pace to my requested dead line. This has been recognised and appreciated"

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That’s super helpful ...

5/5

“Thanks so much for the update. Really appreciate you keeping us informed, it makes a world of difference to me and my wife. It reinforces our confidence that everything is in hand for a quick completion on Friday. That's super helpful and really efficient, thanks again"

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Can’t thank you enough ...

5/5

“Thank you so much for all you have done to help us, you have no idea how grateful we are. You've helped us to not only purchase our forever home but to also provide a lovely family home for our children to grow up in. I can’t thank you enough. You are fabulous at what you do and your constant reassurance, help and guidance made the whole thing a lot less stressful. All the best, & thank you again”

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Lowest 2024 Bridging rates available ...

Get your BEST RATE today ...

Lowest 2024 Bridging rates available ...

Get your BEST RATE today ...

Lowest 2024 Bridging rates available ...

Get your BEST RATE today ...

Lowest 2024 Bridging rates available ...

Get your BEST RATE today ...

Lowest 2024 Bridging rates available ...

Get your BEST RATE today ...

Lowest 2024 Bridging rates available ...

Get your BEST RATE today ...

Lowest 2024 Bridging rates available ...

Get your BEST RATE today ...

Lowest 2024 Bridging rates available ...

Get your BEST RATE today ...

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Fast & flexible Bridging finance from the property experts ! ...

EquityOne Finance Limited is authorised & regulated by the Financial Conduct Authority FRN: 733649


CeMap Qualified

Our advisors are qualified with a Certificate in Mortgage Advice and Practice


ICO Registered

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We are registered with the Information Commissioner's Office (ICO)


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Representative example

For example: Based on an interest only regulated bridging loan of £100,000 for a maximum 12-month period on a fixed rate of 0.79% per month, payable at the end of the term. The total amount payable would be £111,902 made up of the loan amount plus interest of £9,902, and fees of £2,000. The overall cost for comparison is 11.9% APR representative. Please note that this example is for illustrative purposes only and the actual terms and conditions of a bridging loan may vary depending on the lender and the individual circumstances of the borrower. It's important to carefully review all terms and conditions before agreeing to a loan.

BOE Base Rate: 5.25%

We’ve teamed up with Aro Mortgages, one of the UK’s leading second-charge mortgage distributors, to help you find the financial solution that you’re looking for. Aro Mortgages believe that when it comes to your finances, you should be in control. That’s why they work closely with you to fully understand your needs, allowing them to accurately match you with credit options that are right for you and your finances. EquityOne Finance Ltd acts as a credit broker and earns a commission if you choose to take out a loan. A soft credit check will be done to provide your loan quote - this WILL NOT affect your credit rating. Your chosen lender may carry out a full credit check if you proceed to application.

Company name: Freedom Finance Mortgages Limited, trading as Aro Mortgages, is an appointed representative of Freedom Finance Limited Registered address: Atlantic House, Atlas Business Park, Simonsway, Manchester, M22 5PR. Registered in England & Wales 14203395 VAT registration number: 428 9790 42 FCA number: 979210

Representative example

14.26% APRC Representative (variable). Representative example, if you choose to add fees to the loan: assumed borrowing of £25,000 over 7 years, plus a broker fee of £2,850 and lender fee of £367.50 would result in monthly repayments of £509.96, the borrowing rate is 12.78%, the APRC is 14.26% (variable), total charge for credit would be £14,619.14 and the total amount payable would be £42,836.64. EquityOne Finance Ltd and Freedom Finance Limited are credit brokers and not lenders. Your home may be repossessed if you do not keep up repayments on a mortgage or any other debt secured on it.

BOE Base Rate: 5.25%