Try the MFS bridging calculator to estimate the amount you can borrow, interest and other costs. Just enter the market value of your property, any outstanding mortgage, the amount you’d like to borrow and the months you’d need the money for. The calculator is easy to use and you get instant results.
Bridging Loans For Complex Circumstances
Residential and BTL Bridging Loans
Get quick finance to purchase a new residential investment opportunity or build your property portfolios.
Large Bridging Loans
Large loans help provide urgent funding to purchase property and can help remove the worry of missing a lucrative property investment opportunity.
Commercial & Semi-Commercial Bridging Loans
Bridging loans can close the financial gap to start a new business venture or purchase commercial and semi-commercial properties to convert into residential properties.
Permitted & Light Development Bridging Loans
Our refurbish and renovation loans could help you increase their property’s value; available for a range of properties including homes of residency under a 2nd charge loan.
Development Exit Bridging Loans
Bridging finance can relieve the pressure felt from lenders to give property developers a chance to sell assets at their maximum value or arrange other long-term finance.
Auction Bridging Loans
Our auction finance provides auction buyers with bridging loans that helps them meet their tight completion deadlines. Where speed is of the essence, auction loans provide flexible and quick bridging that meets the property requirement.
Overseas Bridging Finance
We regularly provide offshore loans for property investors who are based outside the UK but are looking to invest in UK property.
Complex Bridging Finance
No matter how complex the circumstances, our bridging loans could see funds in your account in as little as three days.
Second Charge Bridging Finance
A second charge holds the potential for property owners who already have finance in place to raise additional funds for new investment purchases or to pay for renovation works quickly.
Refinance Bridging Loans
We can help you refinance or re-bridging your current loans, providing you with the breathing space to secure an exit strategy to complete on an existing loan.
Bad Credit Bridging Loans
An adverse credit bridging loan can be the lifeline for your project. No matter your circumstances, we will assess your case on its individual merits.
Business Bridging Loans
Business bridging loans can provide funding for comanies seeking to expand, invest in property and more.
Bridging Loans for Limited Companies
Bridging loans for limited companies are short-term, specialised forms of finance designed to support your investment plans. You can use these loans to invest in property, or expand your company’s reach.
Bridging Loans for First Time Buyers
Building your property portfolio is a great undertaking. Bridging loans for first-time buyers can help you achieve your goal without prejudice.
Get in touch via phone, chat or email about your query, however complex it might be. We will try our best to say yes to you, instead of finding a reason to say no.
Contact our Bridging Loans Team:
Contact our Business Development Managers:
Bridging Loans – All You Need To Know
- Why Use MFS?
- What is a bridging loan?
- Uses of bridging loans
- How do they work
- Types of bridging loans
- Advantages of bridging finance
- How much can I borrow?
- Who is eligible?
- Length of terms
- Impaired credit
- How can I apply?
- What is the bridging loan process
- How quickly can I get funds?
1. Why Use MFS?
MFS has been around since before the 2008 financial crisis and as such, we know how to deal the most complicated of circumstances. Unlike other lenders, especially those on the high street, we look for reasons to provide borrowers with funds, rather than look for excuses not to. We understand the real world is complicated. As such, we’ll have nothing to do with “check list” lending. We’ll do everything we can to support your property plans and expand your portfolio.
2. What is a bridging loan?
Bridging loans are short-term loans designed to “bridge the gap” between property purchases. They’re typically used where speed is of the essence, such as when a buyer wants to jump on a good opportunity or has a development deadline on the horizon. Bridging loans can come in many shapes and sizes, from vanilla residential loans to complicated last-minute commercial auctions.
3. Uses of bridging loans
Bridging finance is typically used for the purchasing of property, but they can also be used for several costs throughout the investment process. Bridging loans may be used to cover an existing loan which may be delaying the process. Developers can use bridging finance to keep a project from falling behind, or being forced to sell units at a loss due to quickly approaching deadlines.
Commercial property owners can also find multiple uses for bridging loans. Whether they’re planning to convert empty offices into flats, or simply expand a premises for a broadening business. Bridging loans are particularly useful for foreign investors looking to move into the UK market. Overseas buyers are likely to face more stringent rules and added paperwork than their UK counterparts when going through mainstream routes. Bridging can help reduce these potential setbacks.
4. How do they work
Providers of bridging finance add a charge to the property being used as security, which will be needed to secure the loan. In some cases, other forms of security can be used, such as valuable cars or rare artwork. While there is variation involved, all bridging loans typically fall into two categories: First or second charge. First charge loans are issued where there are no other borrowed funds secured against the property. Where a loan or mortgage is already listed against a property, second charge bridging loans will be issued.
Bridging loans are tailored towards the borrower’s circumstances and end goals. To assess this on a case-by-case basis, MFS follows a specific process: We receive an enquiry, send indicative terms out within four hours, get a decision in principle issued, valuations are then instructed, legal paperwork is supplied and finally, the funds are paid.
5. Types of bridging loans
There are a few different types of bridging loans, such as first and second charge bridging loans. First charge loans are issued where there are no other borrowed funds secured against the property. Where a loan or mortgage is already listed against a property, second charge bridging loans will be issued.
In the event of repossession, first charge loan providers will be repaid before second charge lenders are. As such, bridging lenders face a riskier market and their rates usually reflect this risk. Our bridging loans are unregulated, meaning we do not issue residential loans to borrowers for property they’re planning to live in. Residential loans can be applied for, but only where someone else will be living in the property. Bridging finance is predominately associated with property investors, as opposed to first-time buyers looking for a home to call their own.
Some lenders will provide open bridging loans, where there is no defined exit strategy in place. However, here at MFS we only lend on a closed basis, where there is a clear end-goal or a variety of suitable options for exit provided from the outset, which gives more clarity for both us and the borrower.
6. Advantages of bridging finance
Bridging loans can be issued in as little as 3 days, which could prove crucial in the current market. Buyers are chasing dwindling supplies and where opportunities do pop up, they’re unlikely to go unnoticed for long. The flexibility of bridging finance may also become increasingly important. In recent months, mainstream banks have tightened their lending criteria, while more legislation is on the way for the property market.
7. How much can I borrow?
How much an investor can borrow depends on the type of bridging loan they’re applying for. Additionally, how much they’ll be able to afford will influence what’s lent out. Across all our bridging products, the lowest amount that can be borrowed is £100,000. Our maximum is £50 million.
8. Who is eligible?
We lend to a broad range of investors and entities who are investing in English and Welsh property. This includes individuals, private companies and even complex offshore structures. We can work with buyers from most countries, so long as they’re not coming from a sanctioned state. There are also multiple interest payment options available to our borrowers so no matter how unique their setup, we can find a solution.
9. Length of terms
While all bridging loans are short-term in nature, that doesn’t mean there’s no variation involved at all. Our shortest terms are three months, with the longest lasting 24 months. For landlords, our buy-to-let mortgages cover either 24 or 36 months.
10. Impaired credit
Having a less-then-perfect credit history will not necessarily derail a bridging application. When assessing a client, we’ll look at their entire picture. Experience in the market, income levels and even their business savviness will be reviewed to get a deal over the line. All these elements will be explored with the aim of supporting a loan, not to dismiss an application.
11. How can I apply?
Investors can start the application process through multiple routes. They can simply call or email us to get the ball rolling. We also have an online form which can be filled out, as well a live chat that can be utilized from 9am-5pm.
12. What is the bridging loan process
Every application we receive is progressed as quickly as possible, but they all go through the same 5-step process. The opening stages of an application have already been covered; we receive a new enquiry, a decision in principle is issued following an initial assessment and the terms of the loan will then be agreed.
Following this, a valuation will be completed and then the solicitors involved will be instructed for completion. As the process comes to a close, the loan documents will be sent, and the final elements of due diligence will be wrapped up. Finally, funds will be transferred, and the borrower will utilise them for their investment (known as loan drawdown).
13. How quickly can I get funds?
We can lend funds in as little as three days, but we find most of our loans take around two weeks to be issued. How quickly an applicant will receive their loan will depend on a range of factors, such as how swiftly solicitors move and how quickly all the relevant documentation can be gathered from the client.