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Bridging Loans

Everything You Need To Known About Bridging Loans

If you are looking to purchase a property within the UK or in Europe, but are worried about arranging funds, a Supreme Finance bridging loan could be the answer. Let us walk you through the world of bridging loans with our frequently asked questions.

A bridging loan is a form of short-term financing secured against for businesses or private individuals for residential or commercial properties and developments and land purchases.

Supreme Finance is a principal lender, which means we lend our own money on a commercial basis. This is why we are able to make decisions and issue loans quickly.

As an experienced principal lender, we understand the urgent financial requirements of all of our clients, so our aim is to process all enquiries and applications as soon as we receive them. If all the necessary documents are provided at the time of application, you can get expect to receive your bridging loan within 24 to 48 hours.

The process of obtaining a bridging loan with Supreme Finance is fast and flexible, and our lending will always be adjusted to meet your bespoke requirements.

There can be times when you want to buy a new property, but selling your existing oneis taking much longer than expected. In this type of situation, a Supreme Finance bridging loan could be the easiest way to arrange short-term funding quickly and without hassle. As the name suggests, this will enable you to ‘bridge’ the gap between the sale of your existing home and the purchase of your new property.

Bridging loans are also used by buyers bidding at property auctions and by landlords and property developers to carry out renovation work finance for a quick sale or to obtain a conventional mortgage.

Here, at Supreme Finance, we provide bridging loans for most types of property purchase, including:

  • Residential properties
  • Commercial plots or Semi-commercial properties
  • Auction properties
  • Retail shops
  • Development sites

Bridging loans are typically arranged quickly with relatively little documentation compared to conventional loans. At Supreme Finance, we typically make loans available within 24 hours.

At Supreme Finance, loans are available from £25,000 to £10 million.

As bridging loans are short-term finance solutions, the interest rates charged are generally higher than traditional loans. This is primarily to compensate for the additional risk incurred by the provider.

With Supreme Finance being a principal lender, we offer some of the most competitive rates for bridging loans on the market, starting at 1.5%.

The repayment term is generally between three to 12 months. It is most important to repay the loan on time; however, in some cases, an extension can be arranged.

The LTV, or loan-to-value, ratio is a financial term which describes the size of a loan you take out compared to the value of the property securing the loan. Lenders use LTVs to determine how risky a loan is. Here, at Supreme Finance, we offer LTVs of 80% or lower, which is considered preferable for most bridging loan scenarios. This means that we can offer our clients the best chance of being approved at competitive interest rates, as well as allowing us to consider higher-risk borrowers.

Bridging loans are secured loans. This means that Supreme Finance, as the lender, will place a first charge either on the borrower’s existing property if it is unencumbered, or they can use the property they wish to buy as security.

People often hesitate when they consider applying for a bridging loan because they have a poor credit history. However, the good news is that those with poor credit scores can also benefit from a bridging loan. That is because this form of interim financing is secured on either an existing property or against the new property for which the loan is required. Better still, a bridging loan can even help to improve your credit score if loan payments are made on time. Getting a quote from Supreme Finance will not affect your credit score.

Yes we do. We are fully aware that, when any property which is bought at auction, there are usually 28 days to complete. Supreme Finance is specialised in arranging bridging loans for auction purchases quickly.

How to apply

Simply complete our enquiry form and one of our highly experienced professionals will contact you as soon as possible to discuss your application in detail.