Bridging loan broker - Commercial Trust

Specialist bridging loan broker

Subject to criteria bridging loan rates are available from 0.44% per month. 

  • Borrow from £25,000 to £25,000,000
  • No minimum term and no exit penalties
  • No minimum income necessary
  • Borrow up to 75% of the property value
  • Available to individuals, companies, trusts and partnerships
  • Uninhabitable properties accepted


How you can work out example monthly loan repayments

A bridging loan calculator has been provided for you to work what monthly repayments could be on a bridging loan.

Bridging loan finance advice

A key factor of advice when taking out bridging finance is the exit strategy. Bridging is a short term financial solution; it should be put in place with plans for a smooth transition to long term finance or sale.

Bridging loan advice should not only address finding the best possible product to meet your circumstances, but also offer guidance on how to comfortably move beyond the loan when it has fulfilled its purpose.

Bridging means quick access to funds

Bridging is specifically designed to enable fast access to funds.

In addition, one of the many benefits of using our service to arrange a loan is that, as an established broker, we have built relationships with lenders which afford us preferential service and fast turnaround times.

Decision in principle often within 2 hours

Call our specialist advisers on the telephone numbers at the top of this page or complete our quote request form to get started with a quote.

We will get in touch with you as quickly as possible and once we have the appropriate details can commonly get a decision in principle from a lender within 2 hours.

Purposes of a bridging finance

Bridging finance is available to individuals, partnerships, companies and trusts that need to access funds quickly for any legal purpose.

Commonly this includes purchasing uninhabitable property, buying property at auction and funding modifications to property.

But, it could also be used for other reasons such as settling an unexpected bill when there is a gap in cash flow.

If you want to renovate property

Renovation finance can provide funding for development and refurbishment projects, however big or small.

It may be difficult to get a conventional mortgage for property that is deemed unfit for occupation, (i.e. missing a bathroom, kitchen or plumbing system).

Renovation finance can cover the costs of the sale and refurbishment, letting you do it up properly. You can then arrange a mortgage as a long-term solution.

If you need to cover a cash shortfall

Take out bridging finance to fund any legal purpose. This could include car purchases, VAT bills, deposits, holidays or your children’s education.

You can borrow from £25,000 to £25,000,000 quickly and efficiently to cover any cash shortfall you may have.

If you want to buy auction property for buy to let

A buy to let bridging loan could cover the cost of an auction property in time for completion.

As there is only a 28-day time frame to complete the sale, securing a mortgage in time can be tricky.

If you want to improve your business

You can borrow up to £25 million to invest in new commercial property, update stock or help with cash flow in your business.

A commercial bridging loan can provide funding for a range of properties, like offices, restaurants, B&B's and pubs.

As there is often not much time to secure deals and investments, we can arrange bridging quickly so you can get the cash you need in time.

What is involved in a bridging application?

The first step will be to discuss your requirements with us.

We will need details of the property or properties you will offer as security, the purpose of the loan and your exit strategy.

Free quote

After this initial discussion, you will receive a free quote based on your circumstances and requirements.

Once we have matched you with a lender, we will provide you with an in-depth illustration of the loan you have been offered. If you are happy to proceed with the loan, sign the form and return it to us.

Lender valuation

The lender will then arrange a valuation. Once this is complete, they will pass the report on to their conveyancer (property solicitor) to complete the legal work.

You may need to instruct your own solicitor at this stage.

Completion and payout

After this process has concluded, the lender will release the bridging funds to your solicitor, at which point you can access it immediately.

Finance can be arranged quickly

The length of time that an application takes varies widely, though it can take as little as seven to ten days.

The loan to value (LTV) ratio of your bridging works in much the same manner as that of a traditional residential or commercial mortgage. You forward a proportion of the cash up-front, and the bridging lender lends you the rest.

For instance, a 70% LTV loan on a £200,000 buy to let property would require a 30% deposit of £60,000.

An alternative way to raise the deposit would be to offer additional security; for instance, the equity in another property or properties. It is possible to secure a 100% LTV loan in this manner.

Example 1: First charge

Let’s say you have a commercial property worth £1.5 million and an outstanding commercial mortgage of £600,000 on the property.

With a first charge commercial bridging loan at 50% LTV, you could borrow up to £150,000 against the property without having to put down a cash deposit:

  • 50% of £1.5 million – £750,000
  • Existing first charge mortgage to be repaid – £600,000
  • Remaining loan amount – £150,000

Example 2: Second charge

Alternatively, you could borrow on a second charge basis without repaying the first charge mortgage.

The maximum LTV across more than one mortgage or loan is 65%, meaning that you you could borrow up to £375,000:

  • 65% of £1.5 million – £975,000
  • Existing first charge mortgage to remain in place – £600,000
  • Remaining loan amount – £375,000

This arrangement might be beneficial if you are locked into your first mortgage and will incur charges or higher rates by repaying it early.

However, the interest rates on a second charge loan would likely be far higher.

Borrowing bridging finance at market value or restricted market value

It may also be possible to borrow more than the maximum LTV without the need for additional security if the bridging lender bases their underwriting on a valuation other than the purchase cost.

This would be either a restricted or unrestricted ‘market value’.

The market value, also called the ‘open market value’ or ‘fair value’, refers to the best price one can realistically expect from an ‘arms-length transaction’ (wherein the buyer and seller are independent and unrelated).

There are no restrictions or barriers to entry; it is assumed that sufficient time will have been given to market the property and achieve maximum interest and that both parties will be willing and acting without compulsion.

Open market valuations are an inexact science, but will typically be higher than the purchase value.

Surveyors can also provide market valuations restricted to a 90- or 180-day marketing period.

These valuations assume similar transaction conditions, but apply shorter hypothetical time frames in which to market the property and complete the resale.

As you might gather, the difference between 90- and 180-day values can be substantial (though less so in a ‘seller’s market’).

It is important to know which value – purchase, market, 180-day or 90-day – your lender prefers to work to. Also, bear in mind that even a bridging lender who traditionally uses the 180-day value, may refuse to fund a deal if the 90-day value is too low.

It is advisable to ask your adviser what 90-day value is needed, if any, and attempt to stick to it.