Large Bridging Loans

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    One Commercial Loans can help you to secure a large bridging loan of up to £25 million for your next investment property or development opportunity.

    What is a large bridging loan?

    A large bridging loan is typically defined as a short-term loan that is in excess of £1 million. However, the exact definition can vary depending on the lender and the specific circumstances.

    Large bridging loans are often used by property developers or investors who need to complete a property purchase transaction quickly but do not have the necessary funds available to do so.

    Secure a new bridging loan with One Commercial Loans today

    How do large bridging loans work?

    A large bridging loan works similarly to a standard bridging loan, simply involving larger amounts of money.

    Large bridging loan rates are higher than interest rates on mortgages, typically ranging from 0.2% to 4%, due to the short-term nature and increased risk to the lender. A large bridge loan has a short-term repayment schedule and fixed repayment date, typically ranging from a few weeks to 12 months.

    As a type of secured loan, the borrower will need to provide collateral, often the property being purchased, for which the bridging lender will require a valuation report. Sometimes, large bridge loans are secured with existing property or assets that are owned outright and mortgage free.

    During this time, the borrower may need to make monthly repayments on the loan, which may include extras such as arrangement fees, legal fees, valuation fees as required, and possibly an exit fee.

    Once the borrower sells their existing property or comes into other funds, they can use the proceeds to repay the loan and close the bridging facility. Alternatively, they may choose to refinance the bridging loan with a longer-term loan, such as a traditional mortgage, to reduce their overall borrowing costs.

    It is important to note that taking out a large bridging loan is a significant financial commitment and should only be done after careful consideration and with the guidance of a financial expert.

    What can large bridging loans be used for?

    Large bridge loans can be used for a variety of purposes:

    Property development finance

    Bridging loans are often used by property developers to finance the acquisition of a property or land, as well as the costs associated with planning permission, construction, and other expenses.

    Property investment

    A bridging facility can also be used by property investors who are looking to purchase residential properties to refurbish with development finance and then sell or rent out.

    Property auction purchases

    Bridging loans can be used to secure properties purchased at auction, where completion is required within a short timeframe. Auction finance for both residential property and commercial property development.

    Chain breaks

    Bridging finance can be used to break property chains, where the borrower needs to complete the purchase of a new property before the sale of an existing property has been finalised.

    Business purposes

    In some cases, bridging loans can be used for business purposes, such as funding short-term cash flow issues or providing working capital.

    It’s important to note that most bridging loans should only be used as a short-term solution, and borrowers should have a clear plan in place for how they will repay the loan within the agreed timeframe.

    Large bridging loan eligibility criteria

    To make a bridging loan application, you must fit a lender’s eligibility criteria:

    1. Property value: The property being used as collateral must have a high enough value to support the loan amount. Lenders typically require a professional assessment of the market value.
    2. Income and assets: The borrower must have sufficient income and assets to support the loan repayments and any associated fees (such as the lender’s arrangement fees). Lenders may require proof of income, such as tax returns, bank statements, or payslips.
    3. Credit history: Lenders will consider the borrower’s credit history to assess their creditworthiness and ability to repay the loan, although bad credit is not always a deal breaker.
    4. Purpose and exit strategy: Lenders will need assurance that the loan is for a viable property transaction. The borrower will also need evidence of a strong exit strategy, i.e. exactly how they plan to repay the loan.
    5. Legal documentation: Borrowers must provide all necessary legal documentation, such as proof of ownership of any other assets being used to secure the loan, as well as any legal agreements related to the proposed property transaction.

    It is important to note that eligibility requirements may vary between lenders, and borrowers should always seek professional advice before applying for large bridging loans.

    Apply for high-value bridging finance today with One Commercial Loans

    To increase your chances of securing a large bridging loan in the UK, it’s important to use an expert with access to the right experience and, crucially, the right lenders in the bridging loan market.

    Bridge loans can be complex, so seeking professional advice from a broker or financial advisor can help you navigate the application process and secure the best possible loan terms. The good news is that One Commercial Loans have you covered.

    We have access to a team of residential and commercial brokers, and we can match you to the perfect one to help you secure the bridging facility you need.

    Contact us today and start your application for a large bridging loan

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    About One Commercial

    One Commercial have over 100 years of property experience. At One Commercial we like to use a “one stop shop” approach, utilising the whole market to support our clients in a wide range of property related finance.Their job is to make sure that they have done the hard work by matching your situation to the right commercial lender and for the best deal.

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