Development loans made simple
From an award-winning broker
Low cost development loans from £10,000 to £100 million.
- No upfront broker fees, hidden costs or charges.
- Expert friendly advice direct from Loan.co.uk.
- Always get the lowest rate available for you.
- Partnered with all leading bridging loan lenders for best rates and plans.
- Adverse and bad credit considered.
- Income proof not normally needed.
- Up to 100% of purchase price.
- 1000’s of 5 star reviews.
“I cannot begin to tell you how amazing my experience of this fantastic company was! I would thoroughly recommend loan.co.uk to any of my friends needing their services.”
Fiona Young | verified client
Get my free development loan quote now
- Expert advice with no upfront fees.
- Mortgages from £50,000 to £100 million.
- Low, competitive rates.
- Terms from 3 to 40 years.
- Adverse and bad credit considered.
- Loan to values up to 95%.
- 1000’s of 5 star reviews.
“I cannot begin to tell you how amazing my experience of this fantastic company was! I would thoroughly recommend loan.co.uk to any of my friends needing their services.”
Fiona Young | verified client
No upfront fees
We never charge an upfront fee and you should never pay one to any company for access to a secured loan or mortgage.
Fast decisions
We only need your details to give you an instant, accurate secured loan or mortgage quote that you have been accepted for.
Easy online system
We do everything for you. It’s all online and transparent so you instantly know all about your loan or mortgage.
Your bridging loan in 4 simple steps
Tell us how much you would like to borrow
Use our quick online bridging loan application form to get things moving fast.
Make sure you are happy with the rate
Good to go? Now’s the time to make sure that you’re happy with your bridging loan and rate. And you’re confident of your exit plan.
Chat with the lender
Taking out a large loan? Our lender will give you a quick call to discuss the loan. It’ll only take a few minutes and protects you and the lender.
Receive your bridging loan
And it’s done! And things will be even simpler if you fancy using our service again.
Don’t just take our word for it
4.97/5 Rating
A. Haywood
“Highly recommend. Extremely helpful and supporting all the way through the process, we are extremely thankful for making this happen for us.”
VERIFIED REVIEW
Mrs Marks
“I can highly recommend the overall service. Loan.co.uk gave the best offer and sorted everything for me on a very professional basis. Cannot praise them enough.”
VERIFIED REVIEW
Charles
“Massive thanks to all at Loan.co.uk for finding me a very competitive remortgage. Incredibly helpful throughout the whole process.”
VERIFIED REVIEW
What is a bridging loan?
How does a bridging loan work for home and property owners?
Bridging loans can help you:
- Downsize to a more affordable place
If you are looking to move to a smaller or less expensive home, you could use a bridging loan to secure the smaller property whilst you sell the existing home. - Secure a new home
When there is a delay between the sale and completion dates, a bridging loan can help you to secure a purchase without having to wait for the sale of your existing property to go through. - Repair a broken property chain
A bridging loan can enable you to purchase a new home even if a buyer in the chain drops out. - Buy a property at auction
If you buy a property at an auction, you usually need to pay a 10% deposit immediately. The rest is usually due within 28 days. They’re useful for completing the purchase whilst you arrange a long-term solution, either a through a quick sale or a mortgage. - Build your dream home/grand design
A bridging loan could help you achieve that dream of building your ideal home. - Easy a temporary cash-flow issue
You could use a bridging loan to release equity in your family home. For example, for use in a probate case where inheritance tax needs to be paid on a property, or a divorce settlement.
How do they work for property developers and landlords?
With bridging you can:
- Buy property to develop at auction
Completion is required to happen within 28 days of the hammer going down, so bridging finance can secure the property until it’s either been resold, refurbished or re-financed. - Buy a property that’s considered uninhabitable
If a property is deemed uninhabitable, it can be hard (if not impossible) to find a lender willing to provide a mortgage. A bridging loan can provide the money needed to fund the building work required to make a property fit to live in, enabling it to qualify for a mainstream mortgage. - Renovate a property before a sale
Developers find a refurbishment-bridging loan useful if they need to fund expensive repairs and upgrades to a property before putting it back on the market with the aim of selling it for profit. - Ease a temporary cash flow issue
A bridging loan can be used to capitalise on market conditions and discounted investment opportunities.
How does a bridging loan work for businesses?
Taking out a bridging will help you:
- Raise capital
Bridging loans can be secured against land and property so that companies can raise money in a short timeframe. - Expand quickly
If you needed a new, expensive piece of machinery or extra space to fulfil a large order, by securing a loan against land/property, a bridging loan could provide the funding. - Tax liabilities
Businesses can use a bridging loan if a tax demand is made and the amount cannot be accessed otherwise within the required timeframe. - Meet business obligations
Bridging loans can be used for short-term funding to overcome temporary financial issues.
What is the most I will be able to borrow?
Do I need to have a deposit for a bridging loan?
What will lenders review in particular before approving my loan?
Lenders look at a number of things when determining your eligibility for a bridging loan, such as:
- Plan to repay the loan.
The key question for lenders is, “How do you plan to raise the finances for repaying your bridging loan?” The answer is known as your ‘exit strategy’. Examples of exit strategies include the sale of a property, sale of other assets or refinancing. Lenders prefer it if you know both how and when you’ll be able to make payment, so ideally you’ll have a confirmed completion date. - Secured assets type and value.
For many borrowers, this will be the current property. - Loan-to-value (LTV) ratio.
This is the relationship between the amount you need to borrow and the price of the property you’re buying. The remaining percentage of the property’s price comes from other funds (usually the equity you have in your current house). Lenders tend to favour low LTVs as by paying less of the property’s price, they’re taking a smaller risk. - Mortgage status.
If you’re a homeowner without a mortgage, lenders will offer you a first charge loan (this loan is the first borrowing against the property). If you have an existing mortgage, you could be offered a second charge loan (this is the second borrowing after the mortgage). Second charges attract higher interest rates as they present a greater risk to the lender. That’s because the first charge takes priority should the borrower default, making it harder for lenders of second charge loans to recoup their money.
Which type of bridging loan is best for me?
How is the bridging loan repaid?
Bridging loans are repaid when the borrower’s long-term financing kicks in (most commonly funds from the sale of a property). They can be repaid at any time during the loan’s term and most lenders don’t charge a penalty for early repayment. With Loan.co.uk you will find that there are no early repayment fees. Interest rates for bridging loans are fixed for the duration of the loan (they don’t respond to market changes) and are quoted as monthly. At Loan.co.uk you’ll find market-leading rates.
There are two main ways to charge interest on a bridging loan – serviced interest or rolled-up/retained interest.
- Serviced interest.
This pays off the interest owed each month only. The capital (money borrowed) is repaid at the end of the loan’s term. This is also known as monthly interest. - Rolled-up/retained interest.
The interest payments for the full term of the loan are calculated from the very start. These are then added to the capital to form one total amount that’s due at the end of the loan. This means no monthly repayments. Some lenders will charge interest on the entire capital and interest (effectively paying interest on top of interest). This is sometimes known as deferred interest.
How much time will I have to repay it?
What are the consequences of failing to repay?
What makes Loan.co.uk such an outstanding bridging loan broker?
With all the bridging loan brokers to choose from, why should you use Loan.co.uk to make your plans happen?
- We will quickly help you find the best bridging loan for you and your circumstances.
- You will receive expert advice from an award-winning broker
- We will take care of everything, right up until you receive your money
- Borrow from £10,000 to £100 million