Access Bridge Finance From £1 Million Upwards
Bridge finance is available from £1 million upwards from KP Finance to help bridge the gap between the purchase of one asset and sale of another.
For developers and investors looking to complete property transactions quickly, bridging finance offers a fast and effective short-term finance solution until more longer term funding becomes available.
KP Finance can assist with new property purchases, breaking chains, auction purchase, refurbishments and more – offering flexible terms that are structured to your personal requirements.
We understand that every project is different and a bridge loan can offer more flexible repayment schedules than traditional financing options.
Our funding line starts from £1 million, with repayment periods of 3-24 months with no early exit repayment fees.
To make an inquiry, call the number below or use the form provided. The KP Finance team can offer clear and constructive feedback whilst helping you get an initial decision in principle and funding within 2-4 weeks or sooner.
Call +44 203 488 1128
Samuel Kalms, Director
What is Bridge Finance?
Bridge finance is a short-term financing option and is one of the fastest ways to access immediate capital for property purchases and renovations.
The loan is secured against an asset, usually the property that is being purchased or having renovation work done to it.
Where traditional banks and high street lenders might be more restrictive with their criteria, bridging lenders are more open-minded to take a view on individual projects and cases, offering structured deals and repayments to suit the customer’s needs.
Whether it is residential, commercial or investment, the speed of bridge finance is what makes it most attractive for developers and investors looking to grow their portfolios. Initial decisions can be presented in 24-48 hours and funding can be processed and made in 2-4 weeks or sooner.
How Does Bridging Finance Work?
Bridge finance covers the gap between the purchase and sale of a property. Hence, it is most often used by developers and investors in the property industry who wish to purchase properties fast and grow their portfolios, even if their funds are tied up elsewhere.
With a maximum loan-to-value of 75%, borrowers only need to provide 25% of the overall property value to access funds.
Borrowers will often carry out renovation work to upgrade the property and then resell it on the open market or rent it out to tenants, both residential and commercial.
At this point, the loan is converted into something more long-term and with more affordable rates such as a commercial mortgage or buy-to-let mortgage.
What Are The Terms You Offer?
| Term | Details |
|---|---|
| Loan Term | 3-24 months |
| Loan Amount | £50,000 – £10M+ |
| LTV | Up to 75% |
| Interest Rates | From 0.70-1.20% per month |
| Repayment Type | Retained, Rolled-up or Serviced |
| Security | First charge |
How To Apply For Bridging Finance Step-By-Step
- Make an enquiry
- Get an offer
- Get a property valuation
- Complete with solicitors
- Your funds are released
You will start your application by sharing information about the property and your plans for it.
The property you are looking to purchase or renovate will be used as security during the loan team. The lender will consider the risk and offer terms based on the customer’s experience, financial background, the value and potential of the property.
All transactions will be subject to a property valuation and a legal review and once fully checked, the loan funds are released in one lump sum.
For lenders, it is key that the borrower has a clear exit strategy for paying off the loan at the end of its term. As an applicant, you will need to demonstrate clear plans, purchase costs, building costs and any necessary building work such as architect and engineering plans.
The loan is commonly repaid via a re-sale of the property, refinancing under new terms or alternative funding, such as moving the loan to a buy-to-let mortgage.
What Can I Use Bridge Finance For?
- Property purchases
- Investment property purchases
- Residential property
- Commercial property
- Buying property at an auction
- Renovations and refurbishments
- Chain breaks in property sales
- Land acquisition
What Kind of Properties Can You Purchase?
- Residential
- Commercial (all asset classes),
- Mixed-use
- Land purchases
- HMOs
- Hotels
- Warehouses
- Garages
- Student accommodation
- Leisure centres and gyms
- Offices
- Blocks of flats
What Are The Benefits of Bridging Finance Over Traditional Financing Options?
Faster Access To Funds – Bridging lenders are more independent than high street banks, enabling them to make faster underwriting decisions and process loan applications quicker. Bridging deals are transacted in around 2-4 weeks where mortgages can take several months.
Break Chains – For buyers caught in property chains with several other people, this can significantly slow down the sale process, since you are waiting on the solicitors and finances for several other parties. Using bridging finance turns you immediately into a cash buyer, so you can move quickly on a property deal.perty as quickly as possible.
Flexible Terms – Bridging loan terms can be structured entirely to the needs of the customer and their project. This includes the loan-to-value ratio, the loan duration and repayment terms to ensure that there is healthy cash flow during any building works and can be exited smoothly.
No Early Repayment Penalties – Most bridging lenders do not charge early repayment fees if you are able to exit and repay your loan in full early.
What is The Criteria For Bridging Finance With KP Finance?
- UK resident or company
- Property used as security
- Property is in UK, Scotland or Wales
- Clear exit strategy
- Financial records and statements
- Proof of funds/deposit
- Good credit history preferred but not essential
Repayment Example
- Loan Amount: £1,000,000 (at 70% LTV, property value = £1,428,571)
- Term: 12 months, Interest Rate: 1% per month
- Repayment Type: Rolled-up (interest paid at the end)
- Total Interest: £10,000 × 12 = £120,000
- Total Repayment: £1,120,000 (loan + interest)
Why Should I Use KP Finance For Bridge Finance?
We understand the needs of property developers and investors. When timing is of the essence, we are able to provide fast decisions, approvals and funding where needed.
KP Finance can help you access the most competitive rates and flexible terms across the entire UK market.
Founded in 2016, our expert advisors have more than 30 years combined experience in the bridging sector and will offer market knowledge and established relationships with lenders to get you the best terms possible.
KP Finance is not simply an intermediary. We are involved in the entire transaction from initial enquiry to post completion and want to help you achieve your goals in the most practical and effective way.
Frequently Asked Questions
Are You a Lender or a Broker?
KP Finance is a bridging loan broker. Our expertise and experience in the bridging finance industry allows us to place your loan requirements with the best and more suitable lender. This is not about just getting the cheapest rates possible, but rather connecting you to a lender that understands your personal needs and requirements and can offer flexible terms that are structured for you.
Our track records demonstrates our ability to maximise approvals for our customers, helping them access fast funding to bring their projects to life. Please contact us at enquiries@kp-finance.com or call 0203 488 1128 to speak to a team member today.
How Much Does Bridging Finance Cost?
Interest rates for bridging loans start from 0.40% per month over BOEBR (variable) or c.0.7%-1.25% fixed) and will vary depending on the level of risk and experience of the customer.
What Are The Additional Fees Involved?
- Arrangement fees (typically 2%)
- Valuation fees
- Legal fees
- Exit fees (if applicable)
Which Parts of The UK Do You Cover?
We proudly offer bridging finance in Aberdeen, Birmingham, Brighton, Bristol, Cardiff, Cornwall, Durham, Edinburgh, Glasgow, London, Liverpool, Leeds, Leicester, Manchester, Nottingham, Newcastle, Sheffield, Southampton and many more.
Is My Loan Secured?
Yes, bridging finance is secured against the enquired property or assets as a first legal charge.
How Soon Can I Receive a Decision in Principle?
KP Finance can typically provide an initial decision within 24 to 48 hours. We will require information about the property, its value and your plans for it. We may also request proof of funds for a deposit and recent financial records.
How Soon Could I Receive Funding?
Bridging loans can be funded as quickly as 5 days (should circumstances allow) but the full process from start to finish can typically be 3 to 4 weeks.
Are Repayments Made Monthly or Rolled Up?
The interest and repayments for bridging finance are usually rolled up and paid on exit of the loan term. Other options exist such as monthly (serviced) or interest deducted upfront (retained).
Are There Credit Checks During The Application?
A bridging lender will sometimes run a credit check upon application. At KP Finance, we do not run credit checks ourselves, but undertake our own initial KYC/AML and PeP checks to ensure the suitability of our customers.
Will My Property Be Repossessed if I Cannot Repay?
If your loan has been in arrears for a long time and there is no immediate sign of repayment, the lender may repossess the property in order to recover their losses.
However, before entering this stage, the lender may extend the terms of your loan, giving you longer to repay, but this will incur additional interest and possibly a late charge.
Other options include the opportunity to refinance under new terms, which may be less favourable than the original ones.
At this point, KP Finance will be on hand to assist you and help you to arrange the best possible outcome.
