A property bridging loan is typically used to cover shortfalls in funding or finances and it is “secured” against a property. Basically, like a short-term mortgage but always for business plan purposes. Bridging finance for property development may be used to complete a property within a tight deadline, typically used by property owners, investors and developers.

Bridging finance on a property may be used by people who are looking to avoid property chains and the lengthy application process of getting a mortgage. Rather than wait many weeks or months for a traditional high street mortgage to go through, customers can apply for a bridging loan and receive the money in one lump sum in as little as 2 weeks.

A bridging loan is a type of short-term finance that typically lasts from 3 to 24 months.

Bridging loans are ideal for potential buyers, developers and investors who need a quick turnaround.

Common uses include raising money for a business, investment opportunity, property refurbishment or improvement.  In addition, when buying a property at auction, you may only have 28 days to come up with the purchase price so getting the finance you need through a bridging loan can be more time-efficient than a loan from high street mortgage application.

Buzz Capital Property Finance Ltd, the entity which provides the loans to property businesses, is listed on the FCA Register here with Firm Reference number 963654.

Yes, our bridging loans are typically secured on the property you are trying to raise money for and/or where equity has been released. The borrowing facility is based on the potential value of the property and any other available security and whether we can recover our loan and interest in the event of default.

With rates starting as low as 0.99% per month, a £100,000 bridging loan would cost £999 per month in interest and £11,988 over 12 months. So, the total repayable for a 12 month would be £111,988 being the loan and interest.

Other fees not included are the arrangement fee (2%+) and any solicitor and valuation fees we incur with your approval.

On average, the Buzz are able to send the entire funds to your bank account in one lump sum in 10 to 14 days after the loan has been approved. There is usually an average of 3 to 4 weeks from the start of the application to completing and receiving the funds.

Yes, all credit is considered. We are also a “non-status lender”, meaning that we do assess the potential and value of the property or business in question when deciding your eligibility.

A first charge mortgage refers to the first secured loan against your property and it takes first priority when you make monthly repayments or following a repossession.

A second charge mortgage is the second mortgage you have taken out against the same property, and is, therefore, the second priority when it comes to monthly repayments or following a repossession.

Whether your loan is a first charge or second charge will make a difference in the amount you wish to borrow. As the first mortgage takes priority, a second charge lender will tend to offer less if it is your second mortgage; because in order to recover its funds, it will be second in the repayment order.

There are several repayment finance options that we can discuss with you to suit your specific circumstances. This includes paying standard monthly repayments, rolling over all the interest until the end of the loan term or even deducting all or some of the interest (although this will mean borrowing less) from the initial advance.

A non-status lender means that we do not always consider credit scores during the application and approval process, but rather looking at the value of your property as a deciding factor. Non-status providers are generally not regulated by the Financial Conduct Authority but are still fully licensed to operate in the United Kingdom.

The duration of your loan can vary, with a minimum of 3 months and typically up to 12 months, although we do consider applications up to 24 months. We will always give you the option to repay your loan early, however, we may, with your agreement, charge you a minimum amount of interest.

Our typical maximum loan to value is 75%. Your LTV will depend on affordability, credit and above all, the amount you need to borrow.

We are able to consider loan applications ranging from £50,000 to £2 million, although our typical lend is between £250,000 and £750,000. The amount you can afford to borrow will depend on several factors such as the property or business in question and its potential value. Other considerations include income, affordability, credit and other security available.

The type of borrowers that apply vary and range from property developers looking to renovate, refurbish, develop construction projects or buy new properties to business owners looking to improve their business. The one commonality in all of our loans is that the borrowers own a property that we feel comfortable to hold as security until our loan is repaid.

We lend against UK property and land. The majority of our deals are over residential properties. We will consider securing over the semi-commercial and commercial securities if the loan to value and available security fits our criteria.

There is one key element to bridging finance loans which decides whether it is closed or open and that is whether or not the borrower has a clear, planned exit to repay the loan. If there is an exit strategy then it is a closed bridging loan and, if not, then it will be an open bridging loan. Buzz only offer closed bridging loans.

Yes, having a clear exit strategy is key. Exit strategies are generally things such as the sale of another property, a new or extended mortgage, or a planned payment date for another transaction. If you have evidence of how you will have the funds to pay off the loan then we will give you the rates of a closed bridging loan.

Generally, we will require a very detailed exit plan, typically including a complete-by date, before we will be willing to provide a loan.