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.

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.

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.