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How much do you want to borrow? £100,000
£25,000
£1,000,000
Over how many months? 6 Months
3 Months
12 Months

The UK’s Bridging Loan Experts...

We specialise in providing fast, easy access to bridging finance for UK landlords.

We know that running a property business can be unpredictable. Whether you own just a single buy to let property, or have a large property portfolio, unexpected costs always arise. You may be expanding your business by buying another property at auction; if so you might need a bridging loan to pay for the property while you arrange a longer term finance solution.

You may wish to purchase a new property and need some short term finance whilst you wait for another property to sell, or fund some property development; if so, a bridging loan could help. Whatever you may need to raise additional finance for, we may be able to be of assistance to you.

The loan amount can be tailored to suit your needs, and the term of the loan can range from 3 months up to a year. In addition, if you repay the loan early, there are no exit fees or redemption penalties!

Bridging Loan Rates and Fees

We can provide first charge buy to let bridging loans up to £1,000,000.

We can provide first and second charge commercial bridging loans up to £250,000.

We can provide second charge buy to let bridging loans up to £500,000.

Your bridging loan deposit can be as little as 25%, with Mercantile Trust able to offer bridging loans up to 75% LTV

We can help landlords with a single buy to let property, or those with a large portfolio of BTL or commercial rental properties. We can also provide loans for Limited Companies as well as bridging finance for HMO’s (“House of Multiple Occupancy”).

But it’s not just landlords we can help. If you have a suitable asset and require short term credit, we are here to help you.

Whatever your circumstances, we specialise in helping customers just like you. Our commitment to providing the highest level of service possible, along with competitive loan rates and flexible terms, makes us a company you can trust to deliver the deal and loan you want.

Bridging Loan Application Criteria

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

Loan Criteria:

  • Buy to let / BTL 1st charge bridging loans available up to £1,000,000
  • Buy to let / BTL 2nd charge bridging loans available up to £500,000
  • Commercial 1st and 2nd charge bridging loans available up to £250,000
  • Loans available In England, Mainland Scotland and Wales
  • We can provide up to 75% LTV (25% deposit required)
  • Portfolio Landlords Welcome
  • Minimum rental cover 125% for buy to let
  • HMO (“House of Multiple Occupancy”) and LTD Companies welcome
  • Serviced and Rolled interest available
  • Applicants must own a minimum of 1 buy to let property
  • Declaration of exit strategy required

Applicant Criteria:

  • Minimum applicant age: 18 years old
  • Maximum applicant age: 80 years old
  • Individual and Corporate Ownership Welcome
  • Maximum number of Applicants – 4
  • Up to 5 loans per applicant
  • 3 Years residency history
  • 12 month mortgage or rental history needed
  • E-ID or proof of ID where E-ID fails

What is a Bridging Loan?

A bridging loan provides a short term, secured finance agreement that lets you borrow money using an asset such as a property as security.

Sometimes you need to raise money fast, but only require credit for a short period of time. Longer term financial agreements like mortgages can be too slow to arrange, and are usually repaid over longer periods of time. In most cases, if you repay them early, you will be charged additional fees for doing so. This makes them less suited as a short term financial solution.

As a result, bridging loans were developed to allow you to borrow larger sums of money at short notice, but over shorter periods of time. This makes them ideal for situations such as purchasing property at auction, funding redevelopment projects or to fund the purchase of a new property without having to wait to sell another property.

Bridging loans require an asset to be used as security. This will usually be a property as they generally of a high enough value to cover the amounts of credit required. Lenders will need proof that a borrower has a plan for repaying the loan, known as an "exit strategy". Because the loan is secured, it is essential to ensure that you can have a viable exit strategy for repayment, as your property / home may be repossessed if you do not.

What Are First and Second Charge Bridging Loans?

A "first charge" loan means that it is the first priority for repayment, should you fail to repay it and the asset used as security is taken in lieu. A "second charge loan" indicates that a higher priority, "first charge" loan is already secured against the asset / property (typically a mortgage), which should be repaid before the second charge loan, should the asset ever be repossessed.

Typically, if you are using a bridging loan to fully repay an existing mortgage, the bridging loan will be considered as "first charge", as the mortgage will have already been repaid, and no longer be using the property as security. If you are using the loan to fund an additional property, and a mortgage remains in place on the asset, then the bridging loan will be considered as "second charge".

If you are using the new property as security for the bridging loan, it will be considered as a "first charge" bridging loan, as no mortgage was in place at the time it was secured. It's important to note that if your loan uses both an existing and a new property as security, both could be at risk of repossession should you fail to repay the loan.