Apply For Bridging Loans in London, UK and Wales
Octagon Capital can help you find the best bridging loans and compare offers from a range of UK lenders, private institutions and challenger banks. Borrow from £50,000 to £25 million and repay over 3 to 24 months.
Octagon Capital is based in the centre of London and we have partnered with the award-winning SPF Short Term Finance who will process your enquiry from start to finish.
Start Your Bridging Loan Enquiry
Start Your Bridging Loan Enquiry
*UK Property Only | *Minimum Age 21
Our Bridging Lenders
Key Features
- Borrow £50,000 – £25 million
- Loan Term: up to 24 months
- Loan-To-Value: up to 75% (regulated) and 80% (non-regulated)
- Rates from 0.44% per month
- All credit scores considered
What is a Bridging Loan?
Bridging loans are used to complete on a property within a tight deadline, typically used by property developers, homeowners, landlords and investors.
It is used to essentially ‘bridge the gap’ between the purchase and sale of something. So maybe you are looking to buy a property now as an investment, but to sell it on later.
Bridging loans are often used by people who are looking to avoid property chains and the lengthy application process of getting a mortgage. Using bridging finance makes you a cash buyer, so you can effectively complete on properties quick and avoid chains if someone below you pulls out or you cannot sell a property.
Rather than wait several weeks or months for a mortgage to be approved and go through, customers can apply for a bridging loan and receive the money in one lump sum in around 2 to 4 weeks.
This type of short-term finance typically lasts from 3 to 24 months and is most popular for property developers looking to make a quick sale on a popular property or trying to buy a property at auction.
Speak to Octagon Capital on 0333 414 1491 for bridging loans at 70% LTV, 80% LTV, 90% LTV or 100% LTV.
When Should I Apply For Bridging Loans in London and UK?
Scenario 1: Bridging Loan to Moving Home
The individual has not sold their home yet but is desperate to complete on a new property or they risk losing it. A bridging loan allows them to get the money they need to complete on the property and then they can repay the loan when their house eventually sells.
Bridging Loan Example: Your house is worth £200,000 and you have an outstanding mortgage of £100,000, you want to move to a £400,000 and do so quickly. But you won’t be able to get a mortgage in just a few weeks or sell your existing home. So you get bridging finance to cover the gap, allowing you to move in quickly and clear your debts when your original house is sold.
Scenario 2: Bridging for Property Developers
A small or large property developer sees an individual property or block of flats that they want to refurbish and sell at a higher price.
Rather than go through a long mortgage process, they can borrow a few hundred thousand or million pounds, receive the money within a few days or weeks and complete very quickly.
Several months or years later, the property has been renovated and has now gone up in value, they can sell the estate, allowing them to repay their loan and make a profit. This type of finance is particularly popular for buy to let property developers.
Scenario 3: Raising Finance
If you have an existing bridging loan or mortgage, known as a ‘first charge,’ any equity left over can be used for another loan, known as a ‘second charge.’ This can be used to raise finance for an investment opportunity such as putting money into a business or another property.
Octagon Capital can facilitate finance for agricultural land, bungalows, care homes, chalets, converted barns, cottages, detached homes, farmhouses, guest houses, hotels, maisonettes, mid-terraced homes, offices, petrol garages, semi-detached homes, studio flats, terraces, townhouses and warehouses.
We accept enquiries for bridging loans in London, Birmingham, Manchester, South-East England, Wales, Scotland and practically every other area of the UK upon request. We sadly cannot facilitate loans in Ireland.
Why Should I Use Octagon Capital for Bridging Loans in London?
Using a bridging loans broker can help you find the most competitive rates from across the market – and find the best quote for your project.
Unlike typical banks and mortgage providers, bridging loans can be a lot more tailored and personalised to suit your requirements – and working with a broker like Octagon Capital can help you explore all of these options.
Whether you are looking for the best rates or to receive funds as quickly as possible, we are here to help and do not charge any fees unless we have a deal that is signed and ready to proceed.
Depending on your application, you may find that you are better for a non status bridging loan or development finance product – but Speaking to our dedicated advisors from SPF Short Term Finance can help advise you and find the best products and terms for you available.
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How to Apply For a Bridging Loan with Octagon Capital
Start your application by making an initial enquiry. This enquiry can be made using the form provided, sending us an email at sales@octagoncapital.co.uk or calling us on 0333 414 1491.
During this step, you’ll have to tell us how much you would like to borrow, how long for and some information about the property, including:
- The address
- The current value
- The type of property it is
- Your plans for it
Once you’ve made an initial enquiry, we can usually provide an Offer in Principle in just a matter of hours.
This offer outlines the terms that we are willing to lend on, including our best rate possible, subject to a valuation and further due diligence.
Once this is signed by you, we are ready to proceed with the next steps.
We will require a property valuation subject to approval, which must be completed by a RICS surveyor.
If you’ve undertaken one before applying, this may be viable – we’ll just need to check how recently it was conducted and the outcome. A valuation can often be completed within a week.
We will send your solicitor our checklist of requirements. If the valuation and other documents have come back positively, we can issue you with a mortgage deed to sign.
As soon as our solicitors receive the requested documents, we are ready to proceed with your bridging loan.
We are able to complete the application from start to finish in 2 to 4 weeks – or sometimes sooner.
Frequently Asked Questions About Bridging Loans
Am I Eligible For a Bridging Loan?
Our eligibility criteria is as follows:
- Borrow minimum of £50,000
- UK, Scotland and Wales
- Must be over 18
- Must have an exit strategy
- Residential, commercial, mixed properties, HMOs considered
- Bad credit considered
- Every property is subject to a valuation
We also offer non status bridging loans, which means that we are willing to take a view on people with adverse credit histories and no proof of income.
Instead, we are interested in the potential value of your property and your plans. Hence, having a plan of action, an indication of costs and exit strategy will help with getting your application approved for funding.
How Soon Can I Receive Funds?
Octagon Capital can arrange funds between 2 to 4 weeks – however, this m be even sooner or longer depending on the project.
How Much Can I Borrow?
Customers can apply to borrow £50,000 up to £25 million (or more upon request). We offer a loan-to-value of up to 75% depending on the property, growth potential and exit strategy.
What Are The Fees Involved?
Whilst the fees will depend on the property and the opportunity, the typical fees including in bridging loans are:
Interest rate – charged by the lender
Arrangement fee – charged by the lender
Valuation fees – charged by the surveyor
Legal fees – charged by the solicitor
Broker fees – charged by the introducer
Exit fees – charged by the lender to leave early
What Happens if I Cannot Repay My Bridging Loan At The End of the Loan Term?
If you need to longer to finish your building project or are having cash flow issues, you may look to ‘re-bridge’ or refinance under different terms with the same or a different lender, depending on their risk-appetite. You may want to switch to a more long-term mortgage or repayment plan, but you will want to avoid repossession at all costs.
How Do Repayments Work with Bridging Loans?
Interest is charged each month that the loan is open – and you can decide to pay this back month-on-month or you can ‘roll up’ the repayments until the end of the loan term, so you can pay in full maybe upon the sale, exit or when you have refinanced under something more long-term.
Can You Provide Unregulated Bridging Loans?
Yes, we operate in the regulated and unregulated bridging loans industry in the UK and can assist you with all kinds of projects and deals.
Can You Assist with Bad Credit?
Yes, we are willing to take a view on adverse credit histories by taking into account the property you have in mind and its potential vision and value.
Could My Property Be Repossessed?
Properties are repossessed only as a last resort. If you are struggling to repay your bridging loan and we have exhausted all other options or cannot get hold of you for several months, your property may be at risk of repossession.
THINK CAREFULLY BEFORE SECURING OTHER DEBTS AGAINST YOUR HOME. YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE.
A maximum fee of 1% of the loan amount is payable – for example on a mortgage of £100,000 the fee would be £1,000, the exact fee will be dependent on your circumstances. For Bridging Finance where the net loan amount is £150,000 or below, the maximum fee charged is £1,995.
SPF Short Term Finance is a trading style of SPF Private Clients Limited which is authorised and regulated by the Financial Conduct Authority (FCA).