Bridging Loan | Short term property finance | Auction |

Bridging loans and short term property finance

Bridge loan – short term funding for a faster turnaround

Auction purchase | Refurbishment | Development | Planning gain | Under-value purchase | Business funding | Speed

The problems with typical buy to let mortgages

Mortgages are too slow

Sometimes, especially when buying at auction or negotiating a discount for a “quick sale”, a regular buy to let mortgage just isn’t going to be fast enough.

Even with the best broker on board, it’s likely to take a minimum of four weeks, maybe longer.  If you can negotiate a low price for a fast completion, place the winning bid in an auction or have a tenant lined up for the property then a bridging loan through is the answer.

Unmortgagable property

When you buy a property using a buy to let mortgage  your lender is likely to expect a property to be ready to let out.

If the kitchen or bathroom need replacing or the whole place needs redecorating then they might withhold the mortgage until the work is complete.  Some lenders will allow a degree of refurbishment within the buy to let mortgage but the general answer, especially if structural work is involved is a bridging loan to cover the period while the work is completed.

Other uses

If you’d like to release the equity tied up in your buy to let portfolio then a bridging loan is one possible solution.  Most buy to let lenders have restrictions on what you can use the capital raised for – property  investment is fine but an investment into your business, a yacht or Spanish villa is not.

You’ve worked hard to build up a portfolio, don’t let them tell you how you can spend your money!

We have built up a great relationship with the team at Acorn, and they have made all our business purchases very straightforward.

Dennis & Maggie Cottam 3 businesses purchased with the help of

The mistakes property business owners make…

Bridging is too expensive

Bridging finance is seen by some property investors as expensive. Interest rates and the fees attached are too high.  Some property business owners don’t look at the bigger picture of how they can achieve more using a bridging loan.

Can’t afford the repayments

Bridge loans are designed for the short term.  That means the interest rates are higher but they are typically used where there’s no income from the property. Interest can typically be withdrawn or added to the facility meaning there will be no monthly payments. Let us know your circumstances and we can make the best recommendation for you.

Lack of preparation

Lenders want to know who they are lending to, why and how they will get their money back.  Not having up to date property details, background and a plan will slow everything down.

Moving on

Once a refurbishment or development is finished it makes sense to move to cheaper lending as soon as possible. Even if the property is to be sold staying on high bridging rates could eat into your profit.

Plan the exit before you even start.

I have bad credit

Bridging loans can be arranged for clients whatever their credit status (almost!). It’s based around the security property so your credit background is of far less importance.

Let us know though as some bridging loan companies might have an issue or increase their rates.

I’ve got no regular income

Many property professionals have an intermittent income, buying, refurbishing and selling or letting property can take time to create regular profit and paydays can be rare!  Bridging loans will take this into account, rolling the payments into the loan.  We will need a credible exit route though, and if that’s onto a Buy-to-let mortgage we’ll make sure you’re going to get one to fit your needs.


Bridging loans are agreed upon for a set term, usually between three months and a year.  With some lenders, there’s flexibility if you need extra time, with others, there may not be. So make sure if you’re going to overrun your project you speak to us first and understand the costs.

I got the best deal and the best service

Jillie Stross – past and future customer

Arranging your bridge loan through

buying at auction

Typical auctions give you 28 days to complete.  If you’ve not got cash in the bank then the only way to buy, and to guarantee having the funds ready is to use a bridging loan.

Buying to let

Taking on a property which is not ready to let or unmortgageable – a bridging loan will “bridge the gap” between the purchase and having it ready to let.  Do your costings and give us a call.  Up to 100% funding (against purchase price) can be arranged.

Borrowing against value

If you can source the right deal then we can fund it. Borrow up to 100% of the purchase price of property after deductions for fees and interest leaving your capital free to upgrade it ready to let.

Refurbishing or developing

Buying cheap is the perfect way to maximise profit but buy to let lenders expect the property to be ready to let.  With a bridging loan for refurbishment or development, you can increase the loan as funds are spent to get the most out of your deposit.

Business use

It’s not just about the property.  Use a bridge loan to plug a gap in your business finance; pay a tax or VAT bill or buy stock for that “special” deal.

Bad credit loans

When a traditional mortgage can’t be arranged because of poor credit a bridging loan will keep you in the property market and give you time to clean up your record until a long-term deal is available.

Buying before you sell

Moving up the market or downsizing your portfolio, when the perfect opportunity comes along you need to take it, not wait for another property to sell.  Bridging can be used to quickly fund the purchase, potentially, with no cash in.

Go where the profit is!

There are so many ways to profit from using bridging finance, you just need to understand what’s available and what best suits your circumstances.

Talk to one of our experts to get the best bridging loan deal.

Bridging loan rates of interest & fees

Interest rates, fees and LTVs

The interest rate you pay on your bridge loan is just one part of the equation.  You need to consider the overall cost of the loan and how much you’ll need to put in.

There are many different lenders offering a variety of products so it’s vitally important to give us a clear understanding of your needs before we get started.

Interest rates

The variation in interest rates in the bridging finance world is huge.

Rates start from the lowest at 0.44% per month and peak at around 3% per month.

Both of these extremes are unusual, typical bridging loans are between 0.75% per month for a standard deal and around 1.25% per month for a more complex commercial or refurbishment case.


There will be a variety of fees to pay within the loan, some of these can be added or deducted from the advance and sometimes they can be varied to best fit your circumstances.

Expect to pay an arrangement fee to the lender of between 1% and 2%, a valuation fee, solicitors fees and stamp duty (for a purchase).  Our fee will normally be between 1% and 1.5%.

Loan to Value (LTV)

Perhaps the most important aspect for most borrowers is “how much can I get?”.

Most lenders go to 70% or 75% of the value of the property but then there are exceptions, we have lenders who will lend up to 100% of the purchase price as long as that is not more than 80% of the value.  We have other lenders prepared to lend up to 90% of purchase price for a refurbishment project.  The possibilities are endless – call us with your situation and we’ll work to find the right solution.

If it makes sense to lend then there will be someone out there to do it.

Very quick and easy process which has now enabled me to grow my business. Wouldn’t use anyone else!

What can a bridge loan be used for?

Property puchase


Capital raising

Business cash-flow

Auction puchase

Renovation projects


Below value purchases

Bridging loans – when time is short!

Same day/Next day quotes

Fully approved - 1 week

Drawn down - 2 weeks

Work finished


We have used for over 20 years and can’t recommend them enough, very knowledgable, efficient, friendly and would definitely use them again

Les Kynes – past and future customer

Funding options:- property finance

We also arrange business finance

Cash-flow funding

Opportunities to work with work with a broad variety of introducers from a broad variety of sectors including;

  • Business transfer agents
  • Estate agents
  • Accountants
  • Solicitors
  • Mortgage Brokers
  • Financial Advisors
  • Insolvency Practitioners
  • Business Consultants
  • Coaches

As one of the UK’s leading commercial brokers, is growing our regional representation.

We’re looking for entrepreneurial business to business experts to join our rapidly expanding team in order to meet our mission of Every business & Every Investor having access to the best possible funding sources.

Working with a broad selection of bridging lenders in the regulated space and Together Residential Mortgage, can package the cases your network stops you processing.

Superb service from the first phone call to the final transaction. Acorn were fantastic and we would never of got funding without them, we are now in our third year of trading and business is great.

Lisa Whitney – 5* Customer review

Contact – call us free – 0808 164 2364

344 – 354 Gray’s Inn Road



Redwood House

Brotherswood Court

Almondsbury Business Park

Bristol, BS32 4QW,

Peter House

Oxford Street


M1 5AN

No 2 Wellington Place



83 Princes St.



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