Secure commercial bridging loans for property development with expert financial brokers

Expert Mortgage Brokers specialises in providing tailored bridging finance solutions for commercial properties. Our experienced team ensures you secure the right commercial bridge loan with competitive rates from trusted lenders. Get the short-term finance you need with a solid exit strategy.

Apply for a bridging loan today

  • Fast access to funds for property purchases, auctions, or renovations
  • Expert guidance through the complexities of bridging loans
  • Tailored solutions that align with your property investment goals
  • Personalised advice and support from experienced brokers

Contact us today to unlock the potential of your property investments with the right bridging loan solution. Your successful property venture begins here.

Eligible property types for commercial bridge loans

Our tailored commercial bridging finance solutions cater to a diverse array of property types, including:

  • Offices and professional practices.
  • Pubs, bars, restaurants, and eateries.
  • Hotels, guest houses, and bed & breakfasts.
  • Retail units, shops, and business parks.
  • Warehouses, factories, and industrial premises.
  • Large HMOs and unique residential investments.
  • Mixed-use developments.
  • Care homes and assisted living facilities.
  • Places of worship.
  • General commercial premises.

Whether you require short-term finance for ready-to-occupy properties, refurbishment projects, conversions, or developments, our experienced lenders can structure a suitable commercial bridge loan. We assess each case individually to provide a tailored bridging finance solution that aligns with your exit strategy and unique circumstances.

Key considerations for a smooth commercial bridging finance journey

Thoughtful planning for a successful commercial bridge loan

Securing commercial bridging finance is a significant financial decision that demands careful consideration. Before proceeding, take the time to evaluate the following crucial points to ensure a smooth borrowing experience:

  • Assess if a commercial bridge loan aligns with your goals or if alternative financing options, such as a commercial mortgage, better suit your needs.
  • Develop a clear and realistic exit strategy for repaying the loan amount within the agreed term.
  • Determine the most suitable interest payment structure – monthly servicing or allowing interest to compound onto the loan amount.
  • Thoroughly review the total cost of the loan, including interest rates, fees, and any additional charges, to ensure transparency and affordability.
  • Verify that the offered loan term is sufficient for your exit strategy to unfold as planned.
  • Understand the lender’s policies regarding defaults and early repayment penalties to mitigate potential risks.

Addressing these key considerations upfront can help you make an informed decision and increase the likelihood of a successful commercial bridging finance experience. Our experienced brokers are here to guide you through these considerations, answer your questions, and present the most suitable options tailored to your unique requirements.

Secure expert guidance for your commercial bridging finance needs

Need help navigating the complexities of commercial bridging finance. Our team of experienced brokers is ready to guide you through the process, address your concerns, and secure the best bridging loan solution for your commercial property goals.

How much can I borrow using commercial bridging loans in the UK?

How much you can borrow hinges on factors like the type of property, its location, and your exit strategy. Generally, you can get up to 75% of the property’s value. So, if you’re eyeing a commercial property, expect to borrow up to £75 for every £100 of its value. Make sure to plan carefully and choose the right loan to fit your needs!

For instance, if you’re looking to purchase a commercial property worth £500,000, you could potentially borrow up to £375,000 (75% of £500,000). The remaining £125,000 would need to be covered by your funds or other financing methods.

It’s essential to note that the maximum loan available to a borrower also depends on the type of property, its location, and the market for such properties. Lenders will assess the risk involved in lending and adjust the loan-to-value ratio accordingly. For example, if the property is in a high-demand area with a strong resale market, you may be eligible for a higher LTV ratio.

At Expert Mortgage Brokers, we specialise in helping property developers and investors secure the best commercial bridging loans for their projects. Our team of experts will work closely with you to understand your specific needs and find the most suitable financing options. Whether you’re looking to purchase a commercial property, refinance an existing loan, or secure development finance, we’re here to guide you through the process.

Simplified documentation for your commercial bridging finance application

To ensure a smooth and efficient application process for bridging loans for commercial property, you’ll typically need to provide the following information:

  • PERSONAL AND PROFESSIONAL DETAILS: Comprehensive information about yourself and any involved parties.
  • PROPERTY SPECIFICS: Detailed description of the commercial property, including its current status and intended use.
  • VIABLE EXIT STRATEGY: A well-defined plan for repaying the loan, supported by relevant documentation to demonstrate its feasibility.
  • LEASE AGREEMENTS: If the property is currently tenanted, copies of the existing lease agreements will be required.

Our dedicated team understands the complexities of commercial finance and property finance transactions. We’re here to guide you through the process, ensuring you have all the necessary documentation prepared for a seamless application experience.

Eligibility for commercial bridging loans for property development

Here are the key factors that influence eligibility for commercial bridging loans:

  • EXIT STRATEGY: The most critical factor in approval is your exit strategy. This includes how you plan to repay the loan, which could be through the sale of the property, refinancing to a long-term loan, or other means of repayment.
  • CREDIT HISTORY: While a good credit score is not essential, it can contribute to approval or rejection in combination with other factors.
  • BUSINESS FINANCES: If you’re applying as a business or limited company, you should submit your accounts. Lenders assess your profitability based on your earnings before interest, tax, and amortisation (EBITDA).
  • PROPERTY EXPERIENCE: Lenders consider your track record in developing or selling property. If you’re applying for a loan for an unusually complex project, they may want to see evidence of previous success managing similar work.
  • LOAN AMOUNT AND SECURITY: The size of the loan and the security offered are crucial. Commercial bridging loans are usually available up to a loan-to-value (LTV) of 75%, but if your LTV is low, you’ll usually be offered a much lower rate.
  • ADDITIONAL SECURITY: Offering additional security can secure a better rate. You can secure a bridging loan on the property you plan to buy, but you can also secure it on another property in your portfolio.
  • LENDER SELECTION: Only a select few specialist lenders offer commercial bridging loans. Each lender usually only works with deals of a certain size and duration, so you’ll need to find one that’s a good fit for your project.
  • PERSONAL FACTORS: Personal credit history, income sources, location of the property, and previous experience in property development can influence your eligibility. Be prepared to provide comprehensive personal and financial information.
  • LOAN TERM AND REPAYMENT: Commercial bridging loans are typically short-term, usually up to 24 months. Clearly outlining your repayment timeline is essential in the application process.
  • BRIDGING LOAN CRITERIA: The specific criteria for a bridging loan vary depending on whether you’re looking for a regulated or non-regulated loan. Non-regulated bridging loans have more flexible criteria, while regulated loans have stricter requirements.

How expert mortgage brokers can help?

When you’re looking to get a commercial bridging loan for property development, we’re here to be super helpful. We use our knowledge and connections to get you a great deal. Here’s how we do it:

  • UNDERSTANDING THE MARKET: We know the loan market well and find the best loan for your situation.
  • ASSESSING YOUR FINANCES: We look at your financial situation and work out the best loan structure for you.
  • CONNECTIONS: We have contacts with many lenders, including some you might not know about. This helps us get better loan terms for you.
  • SMOOTHER PROCESS: We help fill in the paperwork and guide you through the loan process, making things faster and easier.
  • BETTER APPROVAL CHANCES: We know how to make your application look good, advising on the best time to apply for optimal loan conditions.

In short, choosing us as your finance adviser can save you time, money, and stress when getting a bridging loan.

Frequently asked questions on commercial bridging loans for property development

A commercial bridge loan is a type of short-term financing designed to fund immediate opportunities, typically in real estate. It is used to bridge the gap between the need for capital and a more long-term financing solution.

The time it takes to secure a commercial bridging loan can vary depending on the lender, the complexity of the deal, and the borrower’s financial situation. Generally, commercial bridging loans are processed quickly, often within a few days to a week, as they are designed for short-term financing.

Only some commercial bridging loans are regulated. While many are unregulated, some may be regulated by the Financial Conduct Authority (FCA) if they are used for residential or semi-commercial properties.

Commercial bridging loans typically have a short-term nature, and the interest is usually rolled up and repaid at the end of the loan term. Some lenders may offer the option to pay interest monthly, but this would depend on the specific loan terms and conditions.