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.

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.

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.

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.

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.

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.

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.

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.

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.

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.

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.

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.

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.

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

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.

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.

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.