What are bridging loans?
Bridging loans are a short term funding option typically used by property buyers to ‘bridge’ the gap when buying a new property and waiting for a traditional mortgage to be approved or capital to be released from the sale of their current home.
Bridging Loans are most commonly used to help fund a new house purchase while you’re waiting for your existing property to sell. But bridging loans can also be used for a variety reasons such as major structural home improvements and renovation projects. Bridging loans are also often used to help those looking to buy at auction where you have a short timeframe to exchange contracts.
Frequently asked questions
Can I get a bridging loan on any property?
In principle yes, you can get a bridging loan on virtually any property
What percentage loan to value can I apply for?
Typically you fund up 60% of the property value with bridging loans.
Can I get bridging loan for a property I’m buying at auction?
Yes. Bridging finance is often used to help buyers to meet the 28-day payment deadline included in most auctions and to bridge the gap until they can arrange a longer-term mortgage. We can help you with both.
Is a bridging loan always expensive?
As a short-term loan, you typically pay a little more for a bridging loan than a standard mortgage, but if you know where to go, it doesn’t have to be prohibitively expensive.
Is there a set time limit?
Bridging loans can’t exceed maximum time limits (12 months for a regulated bridging loan and 18 months for a non-regulated bridging loan) but can be paid off as soon as you have alternative finance in place.
Why John Charcol?
John Charcol are highly-experienced bridging loan brokers. When you come to us for mortgage advice, you can take advantage of the following benefits:
- Independent We know where to find the best deals for people like you.
- Experienced We’ve been arranging London City mortgages for over 20 years.
- Personal We’ll come to you and take as much pain out of the process as humanly possible.
- Expert Many of our clients don’t qualify for a standard mortgage. That’s where our expertise comes in.
- Flexible We're used to working with high net worth individuals who want flexible mortgages that give them best value.
- Fast We work quickly to make things happen in the timeframes you need.
- Accessible We’re real people available on the end of the phone or in person, as and when you need us.