what are bridging loans?

At MT Finance, we believe a bridging loan should either make or save you money.

The biggest selling points of a bridging loan compared to mainstream lending are speed and flexibility. MT Finance is often able to make lending decisions within hours of initial enquiry and release funds in a matter of days, preventing property investors and business owners from missing out on time-sensitive opportunities that come their way.

MT Finance offers first charge bridging loans and second charge bridging loans fast for investment or business purposes. We also take a view on all credit histories, including borrowers with CCJs and a history of arrears. We do not require a minimum credit score, accounts or proof of income – instead, we are more focused on the property and your future plans.

product features:

  • 1st & 2nd charge loans
  • Loans from £50,000 – £10,000,000
  • Up to 70% LTV
  • Terms from 1-24 months
  • Residential, commercial & semi-commercial property
  • No up-front fees, no exit fees, no ERCs
  • No credit scoring

With no up-front fees, early repayment charges or exit fees, MT Finance will always help you access the most competitive rate, tailoring a solution to fit your financial requirements.

To find out more about bridging finance, or if you have a project you wish to discuss, contact one of our short-term loan experts today on 0203 051 2331 or fill in our contact form and someone will be in touch with you shortly.

what is a bridging loan?

A bridging loan is a short-term loan that can be secured against a property and is designed to “bridge a gap,” until longer-term finance can be arranged, or an underlying security is sold.

Our bridging loans are used when the property being used as security is for investment or business purposes and will never be occupied by the borrower or any member of their immediate family.

who would use a bridging loan?

  • Individuals
  • Business owners
  • Landlords
  • Property investors
  • Developers

when to use a bridging loan

The biggest selling points of a bridging loan is the speed and flexibility the product can offer, compared to mainstream lending. A bridging loan can be used in a wide variety of instances. At MT Finance, we can assist with bridging loans for:

  • Raising finance quickly
  • Refurbishing a property
  • Finishing a development project
  • Buying a property at auction
  • Purchasing/refurbishing an uninhabitable property
  • To “bridge” a shortfall when a sale is delayed
  • To raise a deposit for purchasing property
  • Buying property below market value
  • To prevent repossession
  • Inheritance tax and probate issues
  • Business cash injection
  • Lease extensions
  • Re-bridging
  • Gift deposits

how long will it take to get the funds?

A bridging loan lender is often able to make lending decisions within hours of initial enquiry so funds can be released quickly. Regulated bridging loans tend to take longer than unregulated bridging loans, but timescales are typically 2 to 4 weeks to fund draw-down.

MT Finance is an unregulated bridging loan lender. A bridging loan is ‘unregulated’ when the property being used as security is for business or investment purposes and has never been or will ever be occupied by the borrower or any member of their immediate family.

how much can you borrow?

MT Finance offer loans from £50,000 up to £10 million.

how long can I have the bridging loan for?

MT Finance offers bridging loans from 1- 24 months. It is important to note that all bridging loan lenders will want to see a viable exit strategy before they offer a bridging loan. The most common exit strategies are to refinance through a high street lender, or the sale of the asset.

what charge can a bridging lender take over a property?

MT Finance offer 1st or 2nd charge bridging loans.

what are the rates?

For the most recent interest rates please contact our new business team. The rate depends on the risk factor to us as the lender, for example:

  • The profile of the borrower
  • The asset the loan will be secured on

what are the interest repayment methods?

Interest is normally charged in one of three ways:

  • Paying monthly
  • Retained interest
  • Rolled up interest

At MT Finance, our loans are tailored to each borrower. This flexible approach means we can structure your loan to your exact requirements so that you get the service and loan you truly want. Options include rolling interest to the end of the loan term, monthly debt servicing, or a combination of both.

what are the fees?

  • Valuation fee: This covers the surveyor’s costs for carrying out your property valuation.
  • Arrangement/Facility fee: The cost of setting up the loan, usually around 2% of the loan
  • Exit fee: MT Finance do not charge exit fees. Our loans are subject to a minimum 1-month term, after which you may repay the loan early or make lump sum payments, without incurring any fees
  • Administration fee: The cost of our administration of the loan
  • Legal fee: usually charged at a set rate and pays our legal fees for completing the loan
  • Early Repayment Charges: After the initial minimum 1 month, MT Finance do not charge early redemption penalties if you wish to pay off the loan earlier than contracted.

how to choose the right bridging loan lender

While pricing is a significant consideration, it should not be the sole one. Borrowers should be encouraged to seek the best possible deal by considering additional matters:

  • How complex are your circumstances?
  • How important is swift and efficient delivery?
  • Is there certainty of funding from the lender?
  • What are the extra fees involved- will it work out more expensive?