Question 1

How to get a bridging loan?

Accepted Answer

Getting a bridging loan involves several steps: 1) Contact a specialist broker like FastBridge Funding, 2) Provide details about your property and exit strategy, 3) Complete a streamlined application with minimal documentation, 4) Receive quick approval within 7 days, 5) Access your funds and complete your property transaction. Our asset-based assessment means you don't need perfect credit - we focus on the property value and your exit plan.

Question 2

What are bridging loan requirements?

Accepted Answer

Bridging loan requirements are simpler than traditional mortgages: 1) UK property ownership or purchase, 2) Valid exit strategy (sale, refinance, or long-term mortgage), 3) Property valuation showing sufficient equity, 4) Basic financial information. Unlike traditional lenders, we don't require extensive income documentation or perfect credit scores. Our focus is on the asset value and your ability to repay through the exit strategy.

Question 3

Bridging loan vs mortgage - what's the difference?

Accepted Answer

Bridging loans and mortgages serve different purposes: Bridging loans are short-term (1-24 months), asset-based, fast approval (7 days), higher rates (0.45-2% monthly), flexible criteria, and designed for quick property transactions. Mortgages are long-term (25+ years), income-based, slower approval (4-8 weeks), lower rates (2-5% annually), strict criteria, and designed for long-term homeownership. Bridging loans bridge the gap between property transactions, while mortgages provide long-term financing.

Question 4

How much do bridging loans cost?

Accepted Answer

Bridging loan costs include: Interest rates from 0.45% monthly (5.4% annually), arrangement fees typically 1-2% of loan amount, valuation fees £300-800, legal fees £500-1500, exit fees when repaying early. Total costs depend on loan amount, term, and property type. For example, a £500k loan for 6 months might cost £13,500 interest + £5,000 arrangement fee = £18,500 total. Our calculator helps estimate exact costs for your situation.

Question 5

Can I get a bridging loan with bad credit?

Accepted Answer

Yes, bridging loans are available with bad credit because they're asset-based rather than credit-based. We focus on: Property value and equity, Exit strategy viability, Asset quality, rather than credit scores. While credit history is considered, poor credit doesn't automatically disqualify you. We've helped clients with CCJs, defaults, and bankruptcy secure bridging finance. The key is having sufficient property equity and a clear exit plan.

Question 6

How long does bridging loan approval take?

Accepted Answer

Bridging loan approval is much faster than traditional mortgages: Initial decision within 24-48 hours, Full approval within 5-7 days, Funds available within 7-10 days. Our streamlined process includes: Same-day application review, Quick property valuation, Fast legal completion. This speed makes bridging loans ideal for auction purchases, chain breaks, and urgent property transactions where traditional finance would be too slow.

Question 7

What is the maximum bridging loan amount?

Accepted Answer

Our bridging loans range from £100,000 to £25,000,000, with loan-to-value ratios up to 90%. Maximum amounts depend on: Property value and type, Borrower experience, Exit strategy strength, Asset quality. Residential properties typically allow 75-85% LTV, while commercial properties may allow up to 90% LTV. We can arrange larger loans for experienced investors with strong portfolios and clear exit strategies.

Question 8

What happens if I can't repay my bridging loan?

Accepted Answer

If you can't repay your bridging loan, we work with you to find solutions: Extension options with revised terms, Refinancing to longer-term finance, Sale of the property to repay the loan, Restructuring the loan terms. We understand property transactions can face delays, so we offer flexibility rather than immediate enforcement. However, it's crucial to maintain communication and have a realistic exit strategy from the start.

Question 9

Are bridging loans regulated by the FCA?

Accepted Answer

Bridging loans are regulated by the FCA when provided to consumers (not businesses). This means: Consumer protection rules apply, Clear terms and conditions required, Complaints procedures in place, Professional conduct standards. Business bridging loans have different regulatory requirements. We ensure full compliance with all relevant regulations and provide transparent, fair terms to all our clients regardless of loan purpose.

Question 10

Can I use a bridging loan for property development?

Accepted Answer

Yes, bridging loans are excellent for property development projects: Stage-release funding as work progresses, Flexible terms to match project timelines, Higher loan amounts for development projects, Quick access to funds for materials and contractors. We understand development cycles and can structure loans to release funds at key project milestones. This helps manage cash flow and ensures you have funds when needed for each development phase.

Bridging Loan FAQ

How to get a bridging loan?

What are bridging loan requirements?

Bridging loan vs mortgage - what's the difference?

How much do bridging loans cost?

Can I get a bridging loan with bad credit?

How long does bridging loan approval take?

What is the maximum bridging loan amount?

What happens if I can't repay my bridging loan?

Are bridging loans regulated by the FCA?

Can I use a bridging loan for property development?

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