Bridging Loan

Short-term finance to achieve your long-term goals. Say yes to what you want to do with a bridging loan that’s fast and fair. We’ll get on the case to get you short-term finance you need – which can be as little as 5 days. Ideal not just for the fast-paced world of buying and selling property, but for a whole range of business needs.

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WHAT IS THE BRIDGING LOAN?

It’s a short term loan that gives you the breathing space to arrange long term funding or sell your property.

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WHY PICK THE BRIDGING LOAN?

It lets you quickly raise funds for the majority of business purposes, even purchasing an investment property or land for your next project

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HOW DOES IT WORK?

We chat with you to understand your needs and then make you a loan offer for up to 75% loan-to-value.

Give me the facts

ELIGIBILITY Ltd companies or sole traders based in England, Scotland and Wales
AMOUNT £50,000 - £2m. Max 75% loan-to-value (LTV) considered
DURATION Up to 18 months
INTEREST RATE From 0.95% per month
FEES Set up fee 1.5% of the loan or £1000 (whichever is greater), included in your repayments
APPLICATION PROCESS Online enquiry and call or meeting
SECURITY REQUIRED First or second charge will always be registered against property
SPEED OF DECISION Quote within 1 hour with a fully credit backed offer normally received within 72 hours
TIMING OF CASH Typically around two weeks but can be as quick as 5 working days
REPAYMENT Monthly serviced or rolled
PERSONAL SERVICE Dedicated customer services team
BEST FOR... Interim finance when buying or renovating property

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How it works

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GET A QUOTE

Complete the form above to receive a quote or give us a call.

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PROVIDE YOUR DETAILS

So we can tailor the loan to best suit you.

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FINALISE KEY DOCUMENTATION

Your advisor will confirm key documents required.

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SIGN YOUR AGREEMENT

And we can have the funds with you in as little as one week.

Your questions answered

Bridging Loan

What can a bridging loan be used for?

Although bridging loans are often used to ‘bridge the gap’ between selling a property and buying another, they can be used for more or less any business purpose. Perhaps you want to make a first-time property investment at an auction. Or maybe you’re looking to refurbish a property to increase the yield. It doesn’t even have to be related to property either, You can use it for any short-term capital injection. For example, if you have a tax liability and need to clear your debt.  

Whatever your purpose, we’ll turn your application around quickly to get your funding in place.

What are the benefits?

Our bridging loan gives you the finance you need now, with up to 18 months to repay or to arrange longer-term borrowing.

What is the eligibility for a Bridging Loan?

£50,000 - £2,000,000. 1ST charge (open market value) 75% residential, 70% semi-commercial, 65% commercial, 2nd charge (90 day value) 75%. We also offer up to 70% against land with planning and 60% on land without planning depending on the experience of our applicant.

Why choose Ultimate Finance?

We’re an experienced lender. We understand why businesses need finance and the need for a fast turnaround – particularly where buying property is concerned. We make decisions quickly and will pull out all the stops to get your funding in place. Even to the tightest deadlines. There are no hidden charges, and our rates are competitive. In short, we’re fast, we’re flexible and we’re fair.

How are loan-to-value rates calculated?

Unlike some lenders we base our LTV on the property’s open market value, giving you greater borrowing potential. On first charge loans, we can lend you up to 75% of the value for buy-to-let residential property, up to 70% for a semi-commercial property and up to 65% for commercial premises. Unlike some other lenders we will also lend against land, we can look at up to 60% for land without planning permission and 70% for land with planning permission depending on location and experience. On second charge loans we can lend you up to 75% of the 90 day value on residential, semi-commercial and commercial properties.

What’s the difference between a first and second charge loan?

A first charge loan is a facility that is secured via a first ranking charge on your property, with the second charge loan being a facility that is secured via the second ranking charge against your property. To put this into perspective your mortgage on your personal residence will be secured via a first charge, if you have taken out a secured facility to release some working capital into one of your business interests and you don’t have a property portfolio then the likelihood is that this will be secured via a second charge.

In terms of an Ultimate Bridging Loan, we will only be able to take first charge on a property that isn’t your personal residence, this is because a first charge on your personal residence is classed as a mortgage, and because we aren’t regulated by the FCA we can’t offer that type of facility.

A first charge loan will normally enable a bridging lender to offer more flexibility in terms of the funding and structure of facility on offer, as this is the most secure way of funding for a lender.

What is rolled-up interest?

With this repayment method you don’t have to make any monthly interest payments. Instead, we ‘roll-up’ the interest and add it to your balance at the end of your loan term.

It can suit borrowers who want to keep their monthly repayments as low as possible throughout the term of the loan. It’s worth noting though, that rolled-up interest can’t exceed our maximum LTV criteria.

Is this loan available for property investors?

Yes. As long as you meet our borrowing criteria we’d be happy to consider your application.

Can I use it to buy a residential property for myself?

No. Any borrowing with us has to be for a business purpose.

What documents do I need to support my application?

We try to make the process as simple – and as quick – as possible. Generally, we’d be looking for your last 3 months’ bank statements along with colour photo ID. Details of your exit route will also be required with your application

Can I repay the loan early?

Of course. If you find yourself in a position where you can repay the loan quicker that’s fine by us.

What happens if I need additional finance?

Not a problem. Provided you still meet our lending criteria, we can look at providing additional borrowing.

Are there any additional charges?

We charge a set up fee of  1.5% of the loan or £1000 (whichever is greater) which we include in your repayments, so you won’t have to pay it up front. The only other upfront cost would be for the valuation of the proposed security, which is paid for by the client at the time of instruction, and solicitors fees which are deducted by the solicitors when the funds are being processed for pay out. There will be additional charges should your facility fall into default.

How much is the valuation?

Full valuation instructed by Ultimate Finance from our panel of nationwide surveyors, the fee for this is paid for by the applicant

Is there a limit to the number of bridging loans I can apply for?

Providing they are all for different properties and assuming you meet all of our eligibility criteria then there’s no limit on the number of bridging loans you can apply for.

Want to speak to someone?

We’re always here to support you and your business in a way that best suits you.

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