Bridging loan applications set to boom in 2020

Thursday, 27th February, 2020
Bridging Loan

It’s not just UK property prices that are on the bounce now that the general election is behind us. Bridging loans are, too.

According to one London bridging loans specialist*, 66% of developers were more likely to purchase property in 2020 compared with 2019, suggesting that property development is back in vogue.

However, it’s not just professional property developers that can see the benefits of bridging loans  – but also property investors and everyday homeowners, too.

For developers, bridging finance represents a viable way in which to consolidate all lines of borrowing accrued over the course of a project into one manageable loan until the property is sold. For the investor that spots a property at auction and needs to act quickly, a bridging loan is an effective short-term finance solution.

The same is true of homeowners. It wasn’t that long ago that property was selling even before it officially came on the market. This level of competitiveness favours those who are ready to use cash to make a commitment. However, if you’ve found that dream property but haven’t sold your current one, then without finance it remains just that – a dream. Unless you are able to arrange bridging finance, of course.

What types of bridging loan are out there?

Bridging loans are typically open or closed. A closed bridging loan is based on an agreed point whereby the loan is repaid. An open bridging loan is where the timings are not defined. In terms of repayment, this generally takes place when the property or development is sold or refinanced – whenever that may be.

Can anyone get a bridging loan?

If you can prove that you’re creditworthy, have a good credit history and have experience of property development, then it will be easier to get a bridging loan. Even if you don’t meet one or more of those criteria, it doesn’t mean that you can’t get it. Either way, speaking with a bridging loan specialist is highly recommended.

Who shall I call?

Similar to applying for a mortgage, there are many lenders out there that offer bridging finance products. However, we’d recommend making one call to one bridging loan broker who will save you the time and effort in making multiple calls to multiple lenders. As a Guildford bridging loan specialist, Complete Mortgages will not only save you time in finding the right deal for you, but we can access some of the most competitive bridging loans on the market right now.

Bridging loans are specialist products that require specialist advice. Make sure you get the best you can by calling Complete Mortgages on 01483 238280 or emailing

*Avamore Capital

Guide to bridging loans

Thursday, 24th October, 2019
guide to bridging loans

Do you remember the heady days (and they weren’t that long ago) when a property would be sold within minutes of going on sale?

In some cases, the buyer hadn’t even seen the property – they just knew it would be a good investment, or they simply knew they had to stake their claim in order to be in with a chance to move and avoid upsetting their buyer by holding up the chain.

In both cases, applying for a bridging loan may have been essential in order to buy one property whilst still owning another.

This heated rush to buy property has cooled somewhat, arguably down to another word beginning with ‘b’, however the bridging loan (and an understanding of how to get a bridging loan) is still important.

So that you’re up to speed when it comes to short-term loans, here is a Complete Mortgages bridging loan briefing.

1. What is a bridging loan?

Let’s start with the basics. A bridging loan provides short-term finance so that you can, amongst other things, either a) fund the purchase of another property before the one you currently own has sold, or b) fund building works prior to accessing the cash via a traditional mortgage. A bridging loan will typically run for up to 12 months, although longer term products are available on the market.

2. What’s the difference between a bridging loan and a commercial mortgage?

Bridging loans are generally required for as little as a matter of months, weeks or even days. Commercial mortgages, on the other hand, are long-term loans taken by businesses looking to buy property.

3. Does that mean I can only get a bridging loan for residential property?

No. Bridging loans can be used to fund both residential and commercial properties – but only on a short-term basis. It’s simply used as an interim measure and a way in which to get access to finance when you really need it.

4. What are the restrictions on bridging loans?

Bridging loans are a flexible way in which to borrow money and can used to fund all types of property. They’re also a lot less restrictive than traditional loans and can even be used to fund self-build projects until a standard mortgage is agreed.

5. Does that mean that they’re easier to get?

In many ways, yes. If you’re a business applying for a bridging loan then the process is unregulated, which means the bridging loan application process is very quick. However, if you’re a homeowner looking to bridge the gap to your next property, then the lender will assess your income and outgoings as part of the application. As a Guildford bridging loan specialist, we can guide you through this process.

6. What about the monthly repayments?

Bridging loans don’t typically require monthly repayments as the cost is generally rolled up into the loan. However, as you might expect with a short-term loan that provides this degree of flexibility, the rates are higher than typical mortgages. The team at Complete Mortgages can provide you with a selection of products and discuss their suitability with you during the bridging loan application stage.

7. What are the next steps?

If you’re interested in applying for a bridging loan then contact a member of the team on 01483 238280 or email

As a Guildford mortgage broker we also handle other specialist mortgages such as adverse credit mortgages, limited company buy to let mortgages and mortgages for teachers, too.

Commercial and bridging loans are processed through our subsidiary company, Complete Mortgages Property Limited.

Bridge over less troubled water

Tuesday, 15th March, 2016
Short term finance

Bridging loans have reached an all-time high, accounting for £4bn (or 2 per cent) of the total mortgage lending market. A huge achievement given how prior to the financial crisis the sector was worth less than £1bn.

The meteoric rise of the bridging loan began when, during the troubled times that followed the crisis, lenders stopped lending and the economy stopped growing, forcing those in need of finance to ‘bridge the gap’ on any finance-related agreement they either had or were in the process of arranging.

Nine years later, however, and during a period when economic growth is steady and mortgage deals are amongst the most competitive we’ve seen in years, we’re still witnessing a 300 per cent increase in the value of bridging loans being granted. So, what’s behind this ascent and can we expect to see this upward trend continue?

In short, the answer is ‘yes’ and it is mainly attributable to the exponential rise in property prices and lenders’ increasing willingness to lend on projects that, not too long ago, they wouldn’t have even considered. Let’s not forget that the average property price in 1975 was £10,388 compared with £195,279 in 2015* – a huge gap and one that traditional mortgages alone have, arguably, struggled to fill.

The flexibility of a bridging loan, the fact that it’s granted on the basis of the borrower’s security in addition to its clearly defined loan term, also has wide appeal (for both borrowers and lenders), too. Its short-term nature, where a borrower agrees to pay back the entirety of the loan plus a pre-agreed amount of interest by an arranged date is, for many, a stronger proposition than a conventional loan, where on-going repayments are made on loans often spanning decades. A bridging loan can also be granted within seven to 10 days. And it’s these factors that are seeing bridging loans increasingly being used for a variety of purposes and not just property purchases.

As a Guildford mortgage broker that specialises in bridging loans, having recently secured the coveted consumer credit licence, we’re seeing the perception of a bridging loan shift from last-minute property measure to a serious alternative to mainstream lending. In fact, our clients have used bridging loans for buying property at auctions through to financing business operations and even paying that untimely (and surprise) tax bill.

However it is not always straightforward and as an experienced mortgage broker, it is Complete Mortgages’ job to help you establish a) if bridging finance is available to you and b) if a bridging loan is the right solution for you. After all, and in the interests of transparency, short term and quick access finance often comes at a price and if there’s a better, more suitable option for a borrower, then it’s our responsibility to find and present it to the client.

In summary, bridging loans are now a much more common route to finance however the pros and cons need to be explored before you sign an agreement. For those considering arranging a bridging loan or if you simply want to explore your short-term finance options, then get in touch with someone at Complete Mortgages on 01483 238280 or email

And remember that we don’t just specialise in bridging loans, but also buy-to-let mortgages, commercial mortgages and insurance, too. Call us to find out how we can help you in 2016.

Your property may be repossessed if you do not keep up repayments on your mortgage.


By Mark Finnegan of bridging loan specialist Complete Mortgages