Residential bridging loans from a fast & reliable lender

Residential bridge loans (or ‘bridging loans’ as they are often referred) are a type of short-term property loan used when financing is needed quickly to secure or renovate a residential property.

Residential bridging loans are used as an alternative financing route to standard mortgages, as the process for applying and receiving funding is both faster and easier than traditional banks. However, for your application to be successful it is vital that you can prove you have a strong loan exit strategy (e.g., sufficient monthly income, other properties that are not your home).

Residential bridging loans can be offered on a 1^st or 2^nd (or even 3^rd if necessary for the project) charge basis.

Our residential bridging loans are offered for up to 18 months, with the applicable interest rates dependent on the type of loan you need, the sum borrowed and the current state of the property lending market (as we strive to bring you the most competitive rates possible whilst the market fluctuates).

For our most up-to-date rates, call us today on 0121 746 3130 for a free, no-obligation quote.

Regulated bridging loans are loans that are overseen by the Financial Conduct Authority (FCA) and offer a higher level of consumer protection. However, they are only applicable to residential properties where you or your family currently live or are planning to live, and do not cover residential properties that have been purchased as investment opportunities.

Non-regulated (or unregulated) residential bridging loans are utilised by those looking to purchase, build, develop, refurbish or renovate an investment residential property. They are typically favoured by:

• Landlords
• Property developers
• Limited companies
• Investors

At Signature Property Finance, we specialise only in deals involving investment properties, meaning all our residential bridging loans are unregulated and designed to aid with the purchase or development of buy-to-let investment properties.

Residential bridging loans come in useful when financing is needed quickly to ‘bridge’ a gap that is preventing them from completing a property transaction. Scenarios that residential bridging finance are typically used for include (but are not limited to):

• Property purchases to expand a landlord’s residential portfolio
• Purchase of a new property prior to the selling of another one
• Refurbishment, conversions or development of a residential property so that it can be sold for a profit
• Extending the lease of a residential property before selling
• Buying a residential property from an auction house to use as a buy-to-let investment

The above are a few examples, however we will consider any application pertaining to investment residential properties.

You will find that many property lenders on the market will openly advertise their interest rates.

At Signature Property Finance, we strive to bring you the most competitive rates available, and therefore choose not to advertise our rates as they regularly fluctuate according to the property market and the type of project funded.

This also allows us to be more flexible in our approach to lending and our interest rates and fees will be quoted on an individual basis and tailored to suit the clients’ needs and unique circumstances. Many of our charges (such as our exit fees) can also be negotiated during the consultation process.

It is also important to note that the quote you receive from us on day one will be exactly what you pay at the end of the deal. We do not believe in duping clients through hidden costs or additional administration charges (e.g., fees to receive funding by certain dates) and will remain transparent about our prices from the very beginning.

No hidden fees or nasty surprises – that is our guarantee to you.

The cost of our residential bridging loans depends on the loan product you choose, the type of purchase you need funding for (I.e., purchase of completed property, refurbishment or new build development) and the amount that you borrow. In addition to interest, all our loans come with a 2% arrangement fee and exit fee (which is negotiable).

As our interest rates regularly fluctuate to accommodate the ever-changing market, we strongly advise you get in touch to receive our latest rates. Explore our products above or get in touch with a member of our team for a price quote tailored to your circumstances.

We can lend financing on property projects needing a minimum loan of £100,000 and £1.5 million maximum, however please note that this upper threshold is only available for experienced landlords and property developers.  

Our residential bridging loans are reserved for anyone wishing to build, develop, renovate or purchase a residential property loan as an investment project. We typically arrange loans for UK-based:

• Brokers and their clientele
• First time landlords and landlords wishing to expand their residential property portfolio
• Property developers
• Partnerships
• Private & limited companies
• Investors

We accept both commercial and residential properties as secured assets to borrow against (please see ‘What property cannot be used as security on a residential bridging loan?’ for exclusions).  This can also include the property that we are financing if you are a first-time landlord or property developer. 

We are unable to lend against:

• Petrol stations
• Clubs
• Takeaways
• Trading facilities
• Hotels and B&Bs
• Nursing homes
• Quarries
• Bare land without planning
• Residential homes used by the borrower or their family

To apply for one of our residential bridging loans you must provide:

• Completed and signed application form
• SALIE
• Property portfolio schedule
• Last 3 months business & personal bank statements
• Certified copies of ID (e.g., passport, drivers' licence)
• Utility bill dated within the last 3 months

The relevant documents can be found here. Please note that further case specific information may also be required later.

For light refurbishment loans we will also require:

• CV & details of personal experience in these types of projects
• Full breakdown of refurbishment plan & associated costs
• Planning permission for any conversion

If you are a landlord refinancing an existing residential property, then you will also need to provide details on the projected rental income.

Private and limited companies will also need to provide a personal guarantee from the director(s).

Despite being unregulated, as finance lenders we are still required to adhere to proper and professional behaviour, and are members of several esteemed and widely recognised industry institutions to help assure our clients of this, including:

• NACFB. The National Association of Commercial Finance Brokers is the UK’s leading professional association for property finance brokers and lenders and requires members to adhere to the highest industry and regulatory standards.
• ASTL. The Association of Short Term Lenders have a strict code of conduct for members, requiring them to act with honesty and integrity and to disclose all costs and fees up front (click here to read more about their guidelines).

For properties with a commercial element, we offer a range of loan products to suit their differing needs and requirements, including commercial bridging loans. Explore our range of products for commercial properties to find out more.

No matter what type of loan you seek, there are always risks involved and residential bridging loans are no different in that nature.

The team at Signature contains some of the leading property finance experts in the UK, who can utilise their expertise and experience of the property market to assess your project and situation and help you come up with solutions to minimise your risk as much as possible. For advice or to book a no-obligation consultation with one of our advisers, call 0121 746 3130.