Large Bridging Loans

How much can I borrow?

Loans between £2m and £50m are considered large bridging finance. However, from MFS a client can borrow from as little as £100k if they wish. It is all dependent on the amount the client needs, and the value the asset that they are lending against. At MFS, we lend up to 75% of the property value, otherwise known as 75% Loan to Value (LTV).

What can I use high-value bridging finance for?

Large bridging finance can be used when a borrower wants to take advantage of a new opportunity with a loan value of over £2m. A borrower can utilise the loan to buy portfolios of properties, buy large single assets such as luxury city centre property, or exit a large Development Finance facility to name just a few scenarios.

What types of property can I purchase?

A borrower can purchase various types of property located in Wales & England with a large bridging loan. This can include luxury flats in prime locations, to large country houses spanning acres. They can also be utilised for different property uses, such as residential buy-to-let properties, to large shopping centres or hotels.
The range of property types that are acceptable are vast, so we recommend contacting our Underwriting team to discuss your requirements.

Advantages of large bridging loans

The benefit of high-value bridging finance is the ability to utilise it for those larger and more complicated purchases quickly, without the red tape of the high street banks. This allows for opportunities to be seized more quickly to ensure they’re not missed out on, and additional breathing space to put those more traditional finance facilities into place.

Furthermore, for portfolios, or blocks of flats, where there may be multiple units in play, the transaction can be completed as one loan, as opposed to lots of smaller loans. This simplifies the process for all parties.

Can I get a large bridging loan with an adverse credit history?

Yes, all our specialist loans are open to those with less-than-perfect financial records. This can include missed payments, CCJs, and even bankruptcies. Our underwriters will assess your large bridging loan application on its individual merit, taking into account the wider market and state of the economy.
In the interest of transparency, underwriting will be done from the outset and the terms available to you will be agreed early on, meaning you’ll know exactly how your background will affect the funding, and your repayments. We want you to know exactly where you stand so that you can move forwards with confidence.

Can I use a large loan for auction property?

While the two products work similarly, we separate our large loan and auction products. Our large bridging loans go up to £50m. Meanwhile, our auction finance is currently capped at £20m.

However, our auction loans can be used for a range of substantial investments. This can include luxury apartments in prime locations, blocks of flats, or commercial units.

Regardless of the size of your loan, our auction finance can be with you in a matter of days. Allowing you to meet the tight deadlines involved.

Who is eligible?

Almost everyone that wants to invest in UK property will be eligible for high-value bridging finance, however for large bridging loans specifically, the property(s) which the borrower wants to utilise as security must have a value of at least £2.7m.

They are available for:

• High-net-worth individuals
• Property investors
• Limited companies
• Foreign investors (both individuals and companies)
• UK expats

How long does to arrange large bridging finance?

At MFS we can work as quickly as the client can, with funds being available within 3 days in some cases. We also have a 4-hour turnaround time to respond to enquiries, meaning that you can be sure that someone will come back to you and you won’t be left in the dark. If a client is working to a certain date, we will work with our solicitors to ensure their deadlines are met from our side.

Does high-value bridging finance have higher interest rates?

The interest rate for your loan will be varied by a range of elements. This includes the size of your deposit, movements in the wider economy, and changes to the base rate. Generally, our larger bridge loans do not feature higher rates purely as a result of their size.

As we underwrite from day 1, we can be fully transparent on rates upfront. We aim to make the process as simple as possible, for borrowers and brokers alike. This means we’re keen to provide you with the essential figures you need to make an informed decision.

Additional fees

We do not charge any early repayment charges on any of our loans, although we do have a minimum loan term of 3 months. We do charge a commitment fee on our loans; however, this is refunded when the loan is drawn down. It simply just shows the borrowers commitment to completing high-value bridging finance with us. We also charge an arrangement fee which starts from 1% of the gross loan amount, this will be communicated to the borrower early on in the process so that it is clear.

What is the difference between large and other bridging finance?

The only difference between our large bridging finance, and our other loans is purely the loan size. The underwriting process, documentation required, and the speed of which we can get the deal done remain the same. Similar to our other loans, borrowers are also able to make the right decision regarding interest payments to suit their individual circumstances.

What information do you need to process large bridging funds?

Depending on your case, we will ask you for certain paperwork. These include:

• Purpose of the large bridging loan & evidence how it will be used
• Details of your exit strategy
• Is the property purchased by an individual or a company?
• Details about your security property: full address, value/purchase price, outstanding balances on the property
• Is your security property tenanted or vacant, and what is the rental monthly/yearly income?
• Asset & Liability Statement

Some additional documents might be required. However, our underwriter will give you more detailed information specifically for your case.

How can I apply?

The first step will be to discuss your potential case with one of our underwriters, or BDM team. Just go to our contact page to find the best way to communicate for you – whether it be phone, email, scheduling a call back, or starting a live chat.

Are large bridging loans FCA regulated?

No, our large loans, along with all our bridging products, are unregulated. This means they can provide more flexibility than what may be available on the high street. This flexibility also allows for a speedy process. Where everything is accounted for, our high-value bridging finance can be issued within 3 days of your initial enquiry.
There are many benefits to using unregulated finance to support your auction plans. But if you’re unsure if it’s the right move for you, you may want to seek guidance from mortgage brokers, financial advisors, accounts, and other qualified professionals.

Acceptable exit strategies

Multiple exit strategies are available for our large bridging finance. Common examples include moving onto long-term finance such as a mortgage, or selling your property on to cover the repayments. You may also be able to sell other assets in your portfolio to cover the exit strategy.

Cash settlements could also be used, which may include an inheritance. Development exit finance can be used by property developers, while specialised BTL mortgages can be used by landlords. What’s important to note, is that we will need confirm your exit strategy plans before we issue capital.

Process to pay back the loan

Our flexibility extends to how you can repay your large bridging finance. The interest payments can be covered via a fully rolled structure, part serviced, or serviced monthly.

Your assigned underwriter will work with you to incorporate your preferred option. Your preference may be affected by the term of your loan. For our large bridging loans, there is a minimum term of 3 months, and a maximum of 24.

There may also be an exit fee, with the price determined on application. If you’d like to factor in your options ahead of time, our bridging loan calculator can help.

Why choose MFS

We have been providing specialist finance for over 16 years and in that time, we’ve built up a lot of experience. We understand what property investors need, regardless of whether they’re investing in a flat valued at £250,000, or a full portfolio worth £30,000,000.

And despite all the challenges we’ve faced – a global credit crunch, multiple recessions, and a pandemic – we have never stopped lending.

Our expertise allows us to overcome every problem that a property investment may throw up. If you want to work with a specialist provider who looks for reasons to lend, we’re here for you.