There’s a lot of information to take in when it comes to bridging loans. From eligibility criteria and interest rates to repayment terms and borrowing limits, you need to ensure it is the right fit for your finances.
This depends on several factors, such as:
We work with lenders who offer bridging loans ranging from £10,000 to over £1 million. Once you provide a few simple details, our team can give you a better idea of how much you may be able to borrow. Use our free calculator to explore your options
Bridging loans are designed as short-term financial solutions, typically lasting between 3-12 months. In some cases, terms of up to 18 months may be available.
At the end of the loan term, the loan gross amount will need to be repaid, which will include the fees and interest that was initially deducted.
In most bridging loan scenarios, the interest or monthly payments are added to the gross loan. As a result, lenders usually do not require income proof or conduct an affordability assessment.
The only exception is when the planned exit strategy involves refinancing (e.g., remortgaging in 6 months). In such cases, whilst the bridging lender may not directly require income proof, they might ask to see a Decision in Principle from the remortgage lender. You may need to provide income documentation to obtain this.
If a borrower opts to service the interest monthly in order to secure a higher loan amount, the lender will require proof of income to ensure affordability of the monthly interest payments.
Bridging loans typically have the interest added to the loan, which is referred to as the “gross loan“. The interest is then deducted from the gross amount (along with any fees), which leaves a “net loan” – the funds you receive to use.
Alternatively, you may choose to service the interest monthly by making physical payments, similar to a standard loan. In this case, the interest isn’t deducted from the gross loan, which increases the net loan amount available to you. However, this option will require income verification.
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Bridging lenders tend to be flexible when it comes to employment status. If income proof isn’t needed, applicants can include those who are newly self-employed (even just a few weeks into trading), as well as retired individuals relying on pension or other income sources.
If the loan exit strategy does not involve refinancing (e.g., property sale, inheritance, or pension drawdown), then age and employment status are typically not significant factors in the lender’s assessment.
Because bridging loans are short-term and provide a shorter window to repay the loan compared to traditional mortgages, there is generally a greater risk involved. This is why it is important to make informed and considered decisions about your suitability for this type of finance.
Get in touch with the Willows team to discuss the options available to you and we’ll happily answer any questions you have about the bridging loan process.
Bridging loans provide quick access to funds that can be used to purchase a buy-to-let property. This is an option often used for new and experienced landlords who need financial support in expanding their portfolio.
Bridging loans can also be used for:
Once you start looking into bridging loans it’s easy to get overwhelmed with all the information and the many deals that are available.
Willows Finance simplifies the process, helping you to fine tune your options based on your individual circumstances.
No matter how complex your situation, our team can offer the support you need to navigate the process with confidence.
Call us on 01656 766 158 and let us know how we can help.
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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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