A common way of applying for a bridging loan is through a finance broker. Whilst some people prefer to go direct, others find it more helpful to use a loan expert that offers support in finding the right deal for them.
Bridging loan brokers can be particularly useful for people who are considering taking one out for the first-time, giving them more insight and guidance about the entire process.
A bridging loan finance broker acts as a professional intermediary to help people find the most suitable bridging loans for their circumstances. They use their industry knowledge and experience to act as a middleperson between the borrower and the lender to identify the best solution for both parties.
How much does a bridging loan cost? Try our calculator to get a free estimate.
Some of the benefits of using a bridging loan broker include:
Brokers have access to a wide range of lenders, which enables them to compare rates and find the most competitive deals. At Willows, we work with a panel of accredited lenders that specialise in bridging loans
If a bridging loan lender declines your application, you may still have other options available. This is something we can discuss with you if you need to look at alternative avenues.
Thanks to the relationships we have with our lenders, we can often encourage them to compete for your application, which can result in tailored, lower-cost deals
Not all lenders work directly with the public. Bridging loan brokers can access specialist or exclusive lenders and deals that are not otherwise available, giving you even more options.
Some applications are more complex than others, especially those with adverse credit or that have very specific circumstances. The Willows team has a lot of experience in this area and can help you find the right fit for your finances.
Dealing with documentation and paperwork for a bridge loan application can feel confusing for some. We’ll guide you through every step of the process, so you know exactly what you need to submit and when.
Long delays and complicated processes are not helpful when you are trying to secure a bridge loan. We typically start with the most suitable lender for your application, which supports a smoother process overall.
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When taking out a bridging loan, you should be aware of the potential risks:
If your exit strategy to repay the bridging loan solely relies on selling the property, there is always a risk that you may not be able to sell in time. This could lead to additional interest and fees, or as a last resort, repossession.
Some people choose to remortgage as part of their exit strategy. However, there is no guarantee that the new mortgage will be approved. At Willows, we only proceed with an exit strategy if a Decision in Principle (DIP) is in place, which we can help to arrange.
In refurbishment projects that involve buying an old property for renovation, it is not uncommon to experience delays. This could also have an impact on your exit plan if the property is not ready and sold in time.
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If a bridging loan is not repaid on time, there is a possibility that it could be repossessed and sold by the lender. This is usually a last resort for most lenders as they may be willing to grant an extension – however this will typically come with additional fees and a higher interest rate.
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Even the most well-thought-out exit strategy can experience unexpected issues, so it’s advisable to have a contingency plan in place, just in case things don’t go as expected.
In addition to the lump sum repayment and interest, there will also be some additional fees you will need to factor in:
This is usually calculated as a percentage of the loan and charged by the broker for sourcing, securing and processing the deal. This is typically taken from the gross loan amount and payable once the term has finished.
Lenders also charge a fee for arranging the loan. Although it can vary depending on the lender, it generally ranges from 1% to 2.5% of the loan amount.
This may not always be a requirement, as some lenders use their own in-house solicitors, so there are no external costs for them to cover. If this is the case for your loan, the solicitor fee will be included in the lender’s overall costs. In cases where an external solicitor is required, fees will vary based on the property value and complexity of the process. If you need to hire a solicitor, we recommend using a firm that is experienced in bridging finance, as there are some key differences compared to standard residential conveyancing.
Some lenders use online valuation systems, which often (not always) removes the need for an in-person valuation. This usually means you will not have to pay a valuation fee. If you do need an in-person valuation, the cost will vary depending on the fees applied by the conveyancing firm.
There’s a lot to consider when taking out a bridging loan and having an expert to-hand could make all the difference.
From finding exclusive deals that can lower costs and sourcing a solution that fits your needs to guiding you through a complex application and getting the funds to you as quickly as possible, their knowledge often proves invaluable.
The Willows team is ready to answer your questions and get started on your application. Call us on 01656 766 158 to find out more.
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Getting a quote won’t affect your credit score
We’re extremely proud to be rated ‘Excellent’ for our service standards year after year. Since 2008 we’ve helped thousands of customers across the UK to find the right finance for their needs – no matter how complicated the circumstances.
At Willows Finance we ensure your personal information is kept secure and confidential.
PRIVACY OF YOUR INFORMATION
At Willows Finance Ltd, we appreciate that your privacy is extremely important to you. With this in mind, we have put in place a number of measures to ensure that any personal details we obtain from you as a result of visiting this website is processed and maintained in accordance with accepted principles of good information handling and also in accordance with the Data Protection Act 1988.
This statement provides you with details of the type of information we may hold about you, how we obtain and use information and how we protect your privacy.
Willows Finance Limited
Brocastle, Bridgend, CF35 5AS
Authorised and regulated by the Financial Conduct Authority
Firm Reference Number: 670052
Company Number: 6678545 (Registered in England and Wales)
This document outlines the services we provide. If you need clarification, please contact us at 01656 766158.
We offer first and second charge regulated mortgage contracts for business or personal use.
Other finance options may include:
Regulatory Status:
We offer an advised mortgage broking service and provide enough information for you to make an informed decision.
We are not independent financial advisers. Free debt advice is available from the Money Advice Service.
You can view our privacy policy at: https://willowsfinance.co.uk/privacy-cookie-policy/.
Lenders may also have their own privacy policies which will be provided to you.
We charge a broker fee upon loan completion. The average fee is approximately 5%, depending on your situation.
Fee details:
No refund is offered after completion. You may pay upfront or add the fee to your mortgage. Fees and commission will be detailed in your ESIS and Mortgage Agreement.
You will receive a Mortgage Agreement and an ESIS document detailing:
You may cancel your application anytime before completion without any charge. Mortgages cannot be cancelled after completion.
Missing payments can lead to charges, repossession, and negative impacts on your credit rating.
Consolidating debt may result in higher long-term interest. Securing debt against your home increases risk.
Your home may be repossessed if you do not keep up repayments on a mortgage or other loan secured on it.
If you wish to complain, contact us at:
Willows Finance Limited
Brocastle, Bridgend, CF35 5AS
Tel: 01656 766158
You may be able to refer your complaint to the Financial Ombudsman Service.
We are covered by the FSCS. You may be eligible for compensation of up to £85,000 per person per firm for mortgage advice and arranging.
More info: www.fscs.org.uk
After processing your application, you’ll receive a Mortgage Agreement and have a 7-day reflection period.
Contact us during this period with any questions. To proceed, sign and return the agreement.
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