Find The Best Bridging Lenders With KP Finance
KP Finance can help you find the right bridging lender in the UK to suit your requirements. With funding starting from £1 million upwards, we can facilitate flexible funding repaid over 3-24 months.
For a property purchase or renovation project, the ability to access fast funding with the right terms can be crucial to the success of your project.
Our expertise is being able to find a bridging lender that does not simply offer cheap terms, but rather gives you a repayment structure and the flexibility to grow your portfolio or business to its full potential.
Drawing on more than 30 years of experience in the bridging loan industry, our team is available to assist you with your funding requirements today. Start by completing our enquiry form, or you can call us on the number provided or email us at enquiries@kp-finance.com
We can provide a decision in principle in 24 to 48 hours of receiving your loan request and offer a funding timeframe of 2-4 weeks.
Call +44 203 488 1128
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Samuel Kalms, Director
What Can a Bridging Loan Lender Help Me With?
A bridging lender can offer fast funding for a property-related purchase or expansion. The role of bridging finance acts as a short-term financing solution, to provide the full loan amount upfront to be used to purchase a property or working capital, so that the loan can be refinanced upon exit or through a longer-term mortgage or financing.
Bridging finance lenders can assist with:
- Property purchases
- Investment property purchases
- Residential property
- Commercial property
- Light property refurbishments
- Heavy property refurbishments
- Buying property at an auction
- Chain breaks in property sales
- Land acquisition
- Hotel acquisition and renovations
How Does a Bridging Lender Work?
A bridging lender takes a first charge on a property that is used as security. The lender offers up to 75% LTV on the property and charges a monthly interest rate (circa 1%) until the loan is fully repaid.
Some lenders require a monthly payment (serviced), but most roll up interest repayments which are paid on exit of the loan term.
The loan duration ranges from 3-24 months depending on the lender with some lenders charging early exit fees and some do not.
If the loan is not repaid in full at the end of the loan term, the lender usually charges a default fee (1-2%) and may continue to monthly interest or extend the loan under new terms.
In the even that the debt is not repaid and there is no repayment in sight, the lender may exercise their right to repossess the property in order to recover their losses.
What Information Do I Need To Provide a Bridging Lender?
- Information about the property being used as security – including address, survey and valuation
- Outline of building work – including plans by architects, engineerings, cost analysis and forecasts
- Clear exit strategy – outlining what will happen at the end of the loan term, such as refinancing or resale
- Previous financial records and statements of the borrower
- Proof of funds and deposit from the borrower
What Terms Do 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 With a Bridging Lender in 5 Steps
- Make an enquiry
- Get an offer
- Get a property valuation
- Complete with solicitors
- Your funds are released
When a borrower applies, the property or asset they apply with becomes security and the lender will evaluate the risk and offer terms based on the customer’s experience, financial background, the value and potential of the property.
All property purchases will be subject to a valuation and legal review and once fully checked over, the loan funds are released in one lump sum.
For lenders, it is imperative that the borrower has a clear exit strategy for the end of the loan term – and can demonstrate well-thought out plans and costs for the purchase and any necessary building work.
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.
Can You Help Me Find Bridging Lenders in London?
Yes, based in the centre of London, we are in a perfect position to help you find the best bridging lenders in London, with close relationships with lenders and private individuals in the area.
We can be available to meet for a face-to-face meeting or on-site and discuss through your plans and how we can facilitate this in the quickest and most cost-effective way possible.
Outside of London, we have access to bridging lenders in Manchester, Liverpool, Leeds, Birmingham and more – and we consider the entire market when trying to find you the right financing option.
How Much Can I Borrow With a Bridging Lender?
Bridging loan companies can offer up to 75% LTV maximum with loans from KP Finance starting from £1 million upwards, to £5 million, £10 million or higher.
What Kind of Properties Can You Offer Finance For?
- Residential
- Commercial (all asset classes)
- Mixed-use
- Land purchases
- HMOs
- Hotels
- Warehouses
- Garages
- Student accommodation
- Leisure centres and gyms
- Offices
- Blocks of flats
Bridging Loan 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)
Case Studies
Why Use KP Finance To Find a Bridging Lender?
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 bridging finance lenders to get you the best terms possible.
KP Finance can help you access the most competitive rates and flexible terms across the entire UK market. We understand the needs of property developers and investors. When timing is of the essence, we are able to provide fast decisions and help put your application in the best position possible so that it can be approved and funded quickly.
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.
The team at KP Finance would be delighted to hear more about the project you are looking to raise capital for.
We have the ability to offer feedback on various aspects relating to the purchase or refurbishment work that can help you secure the best bridging terms and meet your desired timeframes.
Frequently Asked Questions
How Much Interest Does a Bridging Lender Charge?
A bridging lender typically charges 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 Additional Fees Does a Bridging Lender Charge?
- Arrangement fees (typically 2%)
- Valuation fees
- Legal fees
- Exit fees (if applicable)
Which Areas of The UK Do You Lend To?
We proudly offer bridging loans in Aberdeen, Birmingham, Brighton, Bristol, Cardiff, Cornwall, Durham, Edinburgh, Glasgow, London, Liverpool, Leeds, Leicester, Manchester, Nottingham, Newcastle, Sheffield, Southampton and many more.
Do You Work With Regulated and Unregulated Bridging Lenders?
We can help facilitate regulated and unregulated bridging loans – and can offer funding options for any customer where the property is used as security.
Is a Bridging Loan Always Secured?
Yes, a bridging loan is secured against the enquired property or assets as a first legal charge.
What Loan-To-Value Can You Offer Me?
Our lenders offer a maximum loan-to-value (LTV) of 75%.
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 Fast Are Bridging Loans Funded?
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.
How Do Repayments From Bridging Lenders Work?
The interest and repayments for bridging loans are usually rolled up and paid on exit of the loan term. Other options exist such as monthly (serviced) or interest deducted upfront (retained).
Do Bridging Lenders Run Credit Checks?
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.
What Happens if My Bridging Loan is Not Repaid On Time?
If your loan reaches maturity and you are not in a position to make repayment, the lender may extend your terms and you 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.
In the worst case scenario, the lender may repossess the property, taking it as security, in order to recover their losses.
At this point, we will assist you and help to negotiate the best possible outcome. We want to ensure that all parties are happy and from the start, we want to connect you to the best lender for your needs, not just the one that offers the cheapest rates.
