Bridging Finance

Bridging finance offers flexible, short-term funding solutions designed to meet diverse property-related needs, including capital raising, auction finance, development exits, finish and exit, and very light refurbishment projects. Whether you’re a property developer, investor, or individual, our bridging loans provide the support needed to bridge financial gaps effectively.

Lending Criteria Overview

Borrower Details
Types

UK individual, LTD Co/LLP, Offshore LTD Co.

Trusts may be considered.
Address history 3 year address history
Adverse credit

CCJs: Up to £10k in past 24 months, settled.

Arrears: Rolling arrears accepted.

Missed mortgage payments: Up to 4 in the last 12 months, none in the last 6

Bankruptcy/IVA/CVA: Over 3 years old. Bankruptcy/IVAs discharged/cleared LTV reductions may apply for adverse credit
Loan Details
Terms

Up to 24 months.
ERCs

No ERCs, 1 to 3 months minimum interest.
Loan sizes

£100k to £10m.
Interest

Serviced, blended or retained
Transactions

Purchase, refinance, capital raise, development exit, finish and exit, auction finance. 
Property Requirements

Property types

 A wide range of property types allowed.

Refurbishment

Very light refurb permitted up to 10% of OMV.

If funded by the borrower, refurb permitted up to 25% of OMV.

Development exit

 Up to 10% of OMV of remaining works allowed for Development exit finance/finish and exit, higher may be considered by exception.
Maximum LTVs

Residential up to 80% LTV.

Semi-commercial up to 75% LTV, residential element must be >50%.

Commercial property pre-planning to 65% LTV, must have obvious C3 mixed-use/ residential opportunity.

Above 70% LTGDV maximum unit value £750,000, higher considered by exception.
Below Market Value (BMV) Transactions

BMV purchases up to 85% loan to cost (qualifying costs being all purchase costs, tax, all refurbishment costs to date, and fees associated with borrowing) or 75% OMV, the lower of the two.
Property location

England and Wales.

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First Charge fixed monthly rates

% of Open Market Value Fixed rates from
65% LTV 0.79%
70% LTV 0.82%
75% LTV 0.85%
80% LTV 0.89%

Second Charge fixed monthly rates

% of 180 Day Value Fixed rates from
70% LTV 1.09%

Unregulated Bridging Finance

Our unregulated bridging finance solutions are tailored to support property transactions that fall outside the scope of regulated lending. This includes opportunities in capital raising, purchasing at auctions, and funding for development exits or light refurbishment.

 

Key Benefits of Bridging Finance

  1. Fast Access to Capital: Bridging loans provide quick access to funds, making them ideal for time-sensitive transactions such as property auctions.
  2. Flexible Terms: Loans are available for up to 24 months, giving borrowers flexibility to manage their financing needs effectively.
  3. Varied Interest Options: Choose from serviced, blended, or retained interest, allowing borrowers to structure repayments in a way that suits their cash flow.
  4. Wide Range of Property Types: Our loans cover residential, semi-commercial, and commercial properties, offering flexibility for different types of investments.

 

Loan-to-Value (LTV) Ratios and Rates

Our bridging loans offer competitive fixed monthly rates with options tailored to the loan’s security:

  • First Charge Bridging Loans: Up to 80% LTV of OMV, with fixed monthly rates starting from 0.79%.
  • Second Charge Bridging Loans: Up to 70% LTV of 180 day value, with fixed monthly rates starting from 1.09%.

Whether you need a first or second charge loan, our competitive rates provide affordable solutions for short-term financing.

 

Who Can Apply for Bridging Finance?

We work with a broad range of borrowers, including UK individuals, limited companies (Ltd Co/LLP), offshore limited companies, and trusts, which may be considered on a case-by-case basis. Our criteria are designed to accommodate diverse financial histories and needs:

  • Adverse Credit: We accept borrowers with settled CCJs up to £10,000 in the past 24 months, missed mortgage payments (Up to 4 in the last 12 months, none in the last 6), or discharged bankruptcies/IVAs over 3 years old. Those with an adverse credit history can be helped by our flex bridging product by referral.
  • Property Location: Our bridging finance is available for properties across England and Wales.

 

Flexible Property Loan Options

Our bridging loans are available for various purposes, including:

  • Development Exit Finance: Up to 10% of Open Market Value (OMV) of remaining works, allowing property developers to secure additional funds toward the end of a project.
  • Auction Finance: Fast funding tailored for auction purchases, ensuring buyers can meet strict deadlines.
  • Light Refurbishment Finance: Suitable for minor property improvements, allowing for up to 10% OMV refurbishment, or 25% if borrower-funded.

 

Lending Criteria Overview

Our flexible lending criteria ensure that bridging finance solutions are accessible to various borrowers and scenarios:

  • Loan Sizes: Ranging from £100,000 to £10 million.
  • No Early Repayment Charges (ERCs): Choose from options with no ERCs and a minimum interest period as low as 1 to 3 months.
  • Maximum LTVs:
    • Residential properties up to 80% LTV of OMV
    • Semi-commercial properties up to 75% LTV of OMV, with at least 50% residential use
    • Commercial properties up to 65% LTV of OMV, with specific mixed-use/residential opportunity

    Ideal for Below Market Value (BMV) Transactions

    Our bridging loans are suitable for Below Market Value (BMV) transactions, enabling borrowers to finance properties at up to 85% of land and acquisition costs or 75% of OMV, whichever is lower. This feature is ideal for investors purchasing properties at a discount or managing refurbishment projects.

     

    How Bridging Finance Works

    1. Application: Complete our application process, detailing the property and financing needs.
    2. Approval: We review the property and borrower’s profile to provide quick approval.
    3. Funding: Receive funds swiftly, allowing you to complete the transaction or project on time.
    4. Exit Strategy: Repay the loan upon sale, refinancing, or completion of the property project.

     

    Why Choose Our Bridging Finance?

    Our bridging finance offers competitive rates, flexibility, and a broad lending scope, making it a popular choice for investors and developers. We are committed to supporting property professionals in realising their investment goals, from auction purchases to development exits.

    Catalyst takes huge satisfaction in being able to help most people looking for short-term finance with our range of bridging loans. We are a provider of short-term property loans to 80% LTV and we excel at delivering the bridging products you need and the service you and your clients deserve. If you would like to talk to us about our bridging finance and semi-commercial bridging loan options, contact our team today 

    How does ‘bridging finance’ help brokers and their borrowers? Our team share their thoughts:

    Dan Burden, Credit Analyst, says: ‘’Available on a variety of different property types and with loans up to £10m, this product is great for a range of different customers that require secure short-term finance with a quick turnaround.’’

Please note that all loans are subject to lending criteria and underwriting.

To discover how much bridging finance you can borrow, and at what monthly rate, please contact our New Business Team or send us a message with your contact information and we will get back to you quickly with heads of terms.

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