When you are buying or developing property you may find that you have a short-term need for a large loan amount. The loan may be needed to purchase a property whilst alternative finance such as a mortgage is put in place, or to release equity from a property to allow the development of a property before selling or renting it. Bridging loans are designed to provide a gap loan that is secured against the property on a first or second charge basis and is an interest-only loan. Below we have explored some of the leading bridging loans available.
Companies are ranked in no particular order.
| Company | Min Loan Amount | Max Loan Amount | Max Term |
|---|---|---|---|
| ABC Finance | Not stated | 80% LTV | Not stated |
| Assetz Capital | £150,000 | £5 million | 24 months |
| Cambridge & Counties Bank | Not stated | £2.5 million | 18 months |
| Close Brothers | £50,000 | £4 million | 12 months |
| CrowdProperty | Not stated | 75% LTV | Not stated |
| Danske Bank UK | Not stated | Not stated | 12 months |
| Greenfield Mortgages | £26,000 | £5 million | 12 months |
| Hope Capital | Not stated | £500,000 | 12 months |
| LendInvest | £200,000 | £15 million | 12 months |
| Oblix Capital | £50,000 | £7.5 million | 12 months |
| Octopus Real Estate | Not stated | 70% LTV | 24 months |
| Proplend | Not stated | £5 million | 18 months |
| Rangewell | No minimum | No maximum | 24 months |
| Sancus | £100,000 | £10 million | 24 months |
| Shawbrook Bank | £50,000 | £5 million | 24 months |
| Time Finance | Not stated | Not stated | Not stated |
| Together Business Finance | Not stated | Not stated | 12 months |
| Ultimate Finance | £100,000 | £2.5 million | 18 months |
| United Trust Bank | £125,000 | £15 million | 36 months |
| West One Loans | Not stated | 70% LTV | 18 months |
1. ABC Finance
- Offers brokerage service for bridging loans
- No brokerage fees
- No upfront fees
- Get a quote in 4 minutes
- Access the whole market
- Compare loans with no credit checks
- Support comparing loans
- Maximum LTV up to 80%
- Provides a bridging loan calculator to help work out the costs
- Highly rated on Trustpilot
Website ABC Finance Bridging Loans
Read the full ABC Finance review
2. Assetz Capital
- An experienced bridging loan provider
- Offers flexible products
- Loans are structured and priced on their own merits
- Fast approval on loans
- Loans from £150,000 to £5 million
- Maximum LTV of up to 75%
- Terms of 6-24 months
- Interest rates from 0.65%
- Interest-only repayment
- 2% arrangement applies
Website Assetz Capital Bridging Loans
Read the full Assetz Capital review
3. Cambridge and Counties Bank
- Bridging loans are offered to experienced property investors
- Up to 70% LTV
- Loans up to £2.5 million
- Maximum term of 18 months
- Personal guarantees are not always mandatory
- No valuation fee is payable until the loan is approved
- Can be easily converted into a longer-term loan
- Offers interest roll-up options
- Secured as a first legal charge on a property
- Available in England, Scotland and Wales
Website Cambridge and Counties Bank Bridging Loans
Read the full Cambridge and Counties Bank review
4. Close Brothers
- Offers bridging loans for residential developments
- Suitable for residential purchases and auctions
- Can be used for refurbishments and development of new builds
- Loans from £50,000 to £4 million
- Terms from 3 to 12 months
- Fast loan turnaround
- Flexible bridging loans
- Available across the UK
- Contact them by phone to discuss the product
- Their subsidiary specialises in loans for London and the South East
Website Close Brothers Bridging Loans
Read the full Close Brothers review
5. CrowdProperty
- Offers bridging finance suitable for a range of property types
- Can be used to secure property purchase
- Suitable for property development and to unlock capital in property
- Up to 75% LTV
- Secured by a first charge on the property
- Monthly interest-only payments
- Option of rolled-up interest available
- Apply online in under 5 minutes
- Fast response on applications
- Experience team
Website CrowdProperty Bridging Loans
Read the full CrowdProperty review
6. Danske Bank
- Offers business bridging loans
- Terms up to 12 months
- Longer terms are possible on negotiation
- Repayment in full at the end of the term or before
- Interest is calculated daily and applied monthly
- Open to Danske business account customers
- Non-customers need to open a service account
- Negotiable arrangement fee
- Lending is subject to status and checks
- Security may be required
Website Danske Bank Bridging Loan
Read the full Danske Bank review
7. Greenfield Mortgages
- Offers short-term bridging loans
- Suitable for businesses
- Can be used to release funds or to purchase a property
- Fast turnaround with decisions with an hour
- Funds can be release within 7 days
- Minimum loans of £26,000
- Maximum loan of £5 million
- Terms up to 12 months
- Support from a Relationship Manager
- Apply by enquiring over the phone
Website Greenfield Mortgage Bridging Loan
8. Hope Capital
- Offers bridging loans for businesses
- Available for residential properties only
- Provides fast loans
- Up to 65% LTV
- Loans of up to £500,000
- Terms from 3 to 12 months
- Interest rates from 0.39%
- No upfront solicitor fees
- No valuation costs
- No personal guarantees required
Website Hope Capital Bridging Loan
Read the full Hope Capital review
9. LendInvest
- Offers commercial and residential bridging loans
- Suitable for auctions and refurbishments
- Minimum loan size £200,000
- Maximum loan size £15 million
- Max LTV of 75%
- Loan terms up to 12 months
- An arrangement fee of 2%
- No early repayment charges
- Choice of service or retained interest
- Available in England, Wales and Scotland
Website LendInvest Bridging Loans
Read the full LendInvest review
10. Oblix Capital
- Offers a variety of commercial and residential bridging loans
- Offers funding up to 75% LTV
- Rates from 0.75%
- Loans terms from 3 to 12 months
- Minimum loan size of £50,000
- Maximum loan size of £7.5 million
- Choice of deducted or service interest
- Decisions can be made in 3 hours
- Funding available to individuals, partnerships and limited companies
- Available in England, Wales and Scotland
Website Oblix Capital Bridging Loans
11. Octopus Real Estate
- Offers commercial and residential bridging loans
- Funding for a variety of projects
- Suitable for acquisitions, refinances and equity release
- Offers up to 70% LTV
- Terms of 1 to 24 months
- Interest rates from 0.75%
- Loans can be completed in as little as a week
- Experienced team in structuring loans
- They are a specialist property finance provider
Website Octopus Real Estate Bridging Loans
Read the full Octopus Real Estate review
12. Proplend
- Offers commercial bridging solutions
- Fast and flexible loans
- Borrow up to £5 million
- Terms up to 18 months
- Up to 75% LTV
- Fixed rates from 0.75% per month
- Interest-only basis
- Receive a decision in days
- Offered to SPVs and personal borrowers
- Suitable for a range of property types
Website Proplend Bridging Loan
Read the full Proplend review
13. Rangewell
- Offers a range of bridging loans
- Fast loan solution
- Suitable for commercial, residential and land
- No minimum or maximum loan amounts
- Up to 100% LTV
- Terms of 1 to 24 months
- Claims to offer competitive monthly rates
- Interest roll-up scheme
- Available to those with adverse credit
- Funding can be released in 5 to 7 working days
Website Rangewell Bridging Loans
Read the full Rangewell review
14. Sancus
- Offers bespoke bridging loans
- Suitable for residential properties
- Single and multiple properties
- Minimum loan of £100,000
- Maximum loan of £10 million
- Up to 75% LTV
- Terms of 6 to 24 months
- From 6.75% per annum plus fees
- A first charge will be made against the property
- Suitable for individuals, investors, developers and corporates
Website Sancus Bridging Loan
Read the full Sancus review
15. Shawbrook Bank
- Offers unregulated bridging finance
- Accepts most property types including complex residential or commercial
- Up to 85% LTV
- Minimum loan of £50,000
- Maximum loan of £15 million
- Terms up to 24 months
- Fixed rates and fees
- Interest rates from 0.50% per month
- No early repayment charges
- Suitable for refurbishment costs
Website Shawbrook Bank Bridging Loans
16. Time Finance
- Offers residential and commercial bridging loans
- Fast access to property loans
- Can be used for a variety of situations
- Suitable for individuals and businesses
- Secured against a property via a charge
- Interest rates from 3.99%
- Fixed rates available
- Up to 95% LTV
- No early repayment penalties
Website Time Finance Bridging Loans
Read the full Time Finance review
17. Together
- Offers commercial bridging loans
- Borrow up to 75% LTV
- Rates from 0.55% per month
- Terms up to 12 months
- No exit fee options
- Fast turnaround
- Suitable for a wide range of property types including residential, semi-commercial and commercial
- Enquire online
- Highly rated on Feefo
Website Together Bridging Loans
Read the full Together Business Finance review
18. Ultimate Finance
- Offers unregulated bridging loans
- For residential investment and land with planning
- Suitable for limited and non-limited companies
- Minimum loan of £100,000
- Maximum loan of £2.5 million
- Up to 75% LTV
- Interest rates from 0.74%
- Terms from 1 to 18 months
- Can release equity through Development Finish & Exit and Refurbishment loans
- Decisions can be made in 24 hours
Website Ultimate Finance Bridging Loans
Read the full Ultimate Finance review
19. United Trust Bank
- Quick and flexible bridging loans
- Suitable for a variety of circumstances
- Competitive rates
- Minimum loan of £125,000
- Maximum loan of £15 million
- Up to 75% LTV
- Terms of 12 to 36 months
- First, second and combination charges
- No early repayment charges
- Suitable for individuals, corporate and trust borrowers
Website United Trust Bank Bridging Loans
Read the full United Trust Bank review
20. West One Loans
- Offers a range of bridging loans
- Commercial and semi-commercial properties
- Residential properties and refurbishments
- Land purchases with or without planning
- Up to 70% LTV
- Terms up to 18 months
- Retained or serviced interest
- First or second charge will be applied
- Interest from 0.65%
- Available in England, Scotland and Wales
Website West One Loans Bridging Loans
Read the full West One Loans review
FAQ
How do commercial bridging loans work?
Commercial bridging loans are designed for commercial uses for individuals, organisations or trusts that require immediate funding to purchase property or release equity from property on a short-term basis.
It can be used a bridge the gap whilst other finance is put in place or funding is recovered, such as a mortgage or sale after renovation.
The bridging loan is secured against the property or land as either a first or second charge against it depending on the equity in the property and the provider.
It is not a repayment loan but an interest-only loan that is repaid in full at the end of the term or before.
How much can I borrow?
The amount you can borrow will depend on several factors – the provider and what they have set as their maximum level, the type of property and the value of the property.
Many providers offer up to £5-15 million on their bridging loans. The type of property you are using as equity will impact the loan to value (LTV) percentage offered as well as the value of the property.
Many providers offer a LTV of up to 75% on many property types but this can be lower on land especially if planning hasn’t been gained and can be as low as 50% maximum.
Every application will however be judged on its own merit and will be provided with a personalised loan offer with the amount, interest level and loan term.
How much will a commercial bridging loan cost?
Commercial bridging loans are interest-only loans not a repayment loan with many being retained or serviced interest.
Many providers offer bridging loans with interest starting from 1.00-1.75% per month. Some providers also charge an arrangement fee which can cost 1-2% of the loan amount.
How long can I borrow money for?
Bridging loans are designed to be short-term finance to bridge the funding gap until other finance can be put in place or funding can be released to repay the loan, therefore the terms are short and typically are only up to 24 months.
Loan terms can also be as short as 1 month and there are often no early repayment charges.
How to apply for a commercial bridging loan?
Each provider may have a different process, but generally, you will be able to enquire or start your application online, or you can contact them over the phone to discuss your needs.
Many providers offer a fast decision process as they know that clients looking for bridging loans need a quick turnaround with a decision within 24 hours.