How to get a bridging loan

Step by step

1. Work out the numbers. Price, value, any works, how much you need and how you’ll repay. The bridging loan calculator shows the true cost and the net cash on day one.
2. Get indicative terms. Share the deal and see the likely advance and cost before you commit. Instant terms does this in a few minutes.
3. Apply and send documents. The lender checks you, the property and the exit.
4. Valuation. A surveyor values the property as it stands, and after works if works are planned.
5. Legal work. Solicitors check title and searches and register the lender’s charge.
6. Completion. Funds are released and you complete your purchase or refinance.
7. Exit. You sell or refinance and repay the loan, interest and fees.

How instant terms works

Instant terms asks about the property, the purchase, any works and your exit. It then shows illustrative figures:

• the day-one advance, and which limit set it: the loan-to-value cap, a percentage of the purchase price, or a cap on the end value;
• the monthly rate, fees and interest, and what’s repayable at the end;
• where a case doesn’t fit, why, so a specialist can look at other options.

It currently covers loans of £200,000 to £2 million on property in England and Wales. The figures are illustrative and depend on the lender’s full assessment.

What lenders check

• The exit. A realistic sale or refinance within the term matters more than almost anything else.
• The security. Value, condition, location, tenure and how easy it would be to sell.
• Loan to value. Usually up to 70–75% of value, gross of fees and retained interest. Buying below market value can change the picture.
• The borrower. An individual, a limited company or an SPV. Companies normally give directors’ personal guarantees.
• Credit history. Adverse credit doesn’t automatically rule a case out, but it needs explaining.
• Experience, especially for heavier works or conversions.
• First or second charge. A second charge behind an existing mortgage is possible but usually costs more.

Documents to have ready

• Photo ID and proof of address for each borrower or director.
• Company details, if you’re buying through a company.
• Proof of your deposit and where it came from.
• Evidence for your exit: an agent’s sale appraisal, or evidence that a refinance is achievable.
• A schedule of works and costs, if you’re refurbishing.
• A list of properties you own, with values, mortgages and rents.
• For auction purchases, the legal pack.

How long does a bridging loan take?

Simple cases with ready documents and responsive solicitors can be quicker. Title problems, leasehold queries, slow searches and late documents are what usually hold things up. See fast bridging loans for what speeds a case up, and a semi-commercial case that completed in three working days.

Regulated or unregulated?

Bridging on property you let or sell is usually unregulated. Bridging on a home that you or a close family member will live in is regulated and must go through an FCA-authorised firm. DasLend refers regulated bridging enquiries to a firm authorised and regulated by the FCA.

Frequently asked questions