A bridging loan is a short-term secured loan, which is typically repaid within between 6 to 24 months. They are a way of accessing financial support in a faster way than dealing with the long processes associated with institutional lenders.

Bridging loans are usually property-specific. They are often used by borrows to ‘bridge’ the gap between a property purchase and putting in place longer term funding or selling a current property.

Bridging loans are more expensive than conventional mortgages or longer term loans, so it is important that borrowers have plans in place to repay the bridging loan as quickly as possible.

There is no set time between a bridging loan application and its approval, but generally they are much quicker to put in place than long-term funding. It the process runs smoothly, it can be possible to access the funds from a bridging loan in just a few days following the application.

The best way to ensure a swift and smooth process is to  work with an experienced bridging loan solicitors, like our team here at Birchall Blackburn Law.

Bridging loans can be used for a number of reasons but they are mostly employed for property based projects, but can be used to support the purchase of business too.

For example, bridging loans can be used for meeting purchase deadlines, purchasing a property prior to the sale of a current property, auction purchases, refurbishment of a property for sale, or the expansion of a landlords property portfolio before renters can be put in place.

Yes, but it will depend on the amount of equity you have in your mortgaged property. A lender will investigate your equity balance on the mortgage to decide the security you can provide to them. The larger the mortgage on the property, the higher the  interest rates or cap on the amount you will be able to borrow.

A solicitor’s fee for putting a bridging loan in place will vary according to a wide number of factors, for example the size of the property, value of the loan and the complexity of your case.

Our experts at Birchall Blackburn Law will be more than happy to talk through the costs and discuss a fixed fee, subject to any unforeseen issues. An experienced solicitor will always be open and transparent about their fees and will swiftly communicate changes to costs if the process is taking longer than planned.