What should I consider before taking out a bridging loan?

Before taking out a bridging loan, there are many factors to consider. For example, whether the loan is secured onto your property. If your bridging loan is secured onto your property, it is important to understand that your property is at risk of becoming repossessed if you are unable to meet the monthly repayments.

Additionally, before taking out a bridging loan you should consider if there are any additional fees such as exit, broker or any legal fees that could be involved. We are a direct lender so there you will encounter no hidden broker fees. We offer true daily interest, meaning that if you are able to pay off your loan before the end of the payment term, we will only charge you to the exact date of this term.

One of the most important things to consider before taking out a bridging loan is your exit strategy. In other words, how you plan to pay your loan back. One way you can do this is by selling your property. It is essential that you are confident that your property will sell before taking out a bridging loan. Alternatively, you can pay back your bridging loan by refinancing to longer term debt.

Furthermore, when discussing the term of your bridging loan, a smaller term is more likely to offer you a smaller interest fee. If you are unable to pay back your loan by the end of repayment period, then you can be penalised for this. We recommend having a plan when taking out any type of loan so you are always prepared if something does go wrong.

There are always risks with taking out any form of loan, especially since delays are possible. Therefore, it is important to be prepared before looking at borrowing money.

What information do I need to apply for a bridging loan?

When applying for a bridging loan, you must provide the lender with specific documentation to support your application.

  • Your current address
  • Your bank statements
  • Details of your employment

Individual circumstances can determine what documents you need when applying for a loan.

How much can I borrow with a bridging loan?

At Mercantile Trust, our bridging loans start from £25,000 up to £500,000. However, how much you are able to borrow depends on how much equity you have in your property.

How much you can borrow also depends on your lender’s criteria. At Mercantile Trust, we take pride in our flexible lending criteria and often accept individuals who have a less-than-perfect credit rating.

Also, it is the lender’s responsibility to ensure that they are agreeing to a loan that is affordable for you. We work closely with our customers and offer loans suited to your financial needs. We are one of the few lenders who can offer an amount as small as £25,000. So it is worth making an enquiry if you are only looking to borrow a small amount.

Enquiring is easy

It takes 30 seconds.

Simply fill out the form above, or call us to discuss your needs now.

Our team of experts are there for you.

You'll deal with the same experienced advisor throughout your enquiry.

We can get you the funds you need, fast.

You could get a lending decision in just one call.

Our flexible approach

Speed

We are proud to be a lender who can deliver loans at a fast approach, to consumers. We make this possible by carrying out our own legal checks, in house for loans under 100k, within hours. We can offer automated valuations, which are available to produce financial solutions in an instant.

Mercantile Trust regularly help their customers carry out renovations with heavy refurbishment loans, by providing finance fast.

No minimum income

At Mercantile Trust, we put our customers at the forefront of what we do.

We offer top slicing, where we can use your personal income when carrying out affordability calculations. If your rental income does not cover your mortgage repayments, we will top up the remaining amount that you cannot cover so you are able to get the loan you require.

No Exit Fees

We want you to be in control of your finance.
With no early repayment or exit fees, Mercantile Trust will strive to find a loan to meet your financial requirements.

Why apply for a bridging loan with Mercantile Trust?

Your consumer journey is our priority, that’s why we like to keep it as short as possible. We can get the funds that you need within a matter of days.

At Mercantile Trust, our flexible criteria means that we can accept 1 unit of adverse credit which some lenders don’t. We understand that your financial circumstances don’t define you and you should have access to the same opportunities as anybody else.

Not only this, we offer flexibility on your payment term. We offer true daily interest, meaning that we won’t overcharge you if you pay back your loan before the end of the term. For example, if you had a bridging loan with a 12-month term and managed to pay back the loan in 11 months, we wouldn’t charge you for the full 12-month period.

Enquiring has never been easier. You could submit an enquiry form online, start an initial chat with us on live chat or call us using the number in the top right of the screen, a member of the team will pick up. We have no phone menus so you can get in touch with a member of the team instantly.

Our bridging loan criteria

We aim to help absolutely everyone, however there are certain criteria that must be met in order to make a successful application:

  • Unregulated bridging applications only
  • Rates from 0.99%
  • Up to 75% loan to value
  • Most property constructions accepted
  • No personal income requirement
  • No exit fees
  • Minimum property value £75k
  • Minimum advance £25k max £500k
  • Confirmation of exit required
  • Minimum of one buy to let or residential property required
  • Serviced and rolled interest available
  • No ERC (Early Repayment Charge)
  • First and second charge available