UK Bridging Loan Guide

When searching for a UK bridge loan or UK bridging financing it is always worth shopping around to see what’s out there.

The following document was created by Commercial Lifeline and is a PDF entitled Bridging Finance Guide.

Below are some highlights from the guide:

What is a bridging loan?

A bridging loan is a short term loan traditionally used when purchasing commercial property.  These large, short term loans assist the buyer with closing a purchase on a new property while still wrapping up the financials on a property for sale. Hence the name “bridge” - this is a connecting loan.

Where do I get a bridging loan?

Any commercial lenders can offer bridging loans.  Quite often the buyer will use the same lender for both the mortgage on their commercial property and the bridging loan.  This is a convenient option as the lender would have already checked your credit history and ability to repay for the mortgage, so there is no need for duplicate paperwork.

Common fees of bridging loans

The fees associated with a bridging loan are similar to those of a standard commercial mortgage.  Typical fees may include an arrangement fee, a completion fee and legal fees.  Another fee might be a good-faith deposit which is paid to the lender as a guarantee that you will not back out of the loan.  If you back out of the loan agreement then this amount will not be refunded, but instead be kept by the lender to cover their time and expenses.

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