Downsizing bridging loans.
- Flexible on income & credit status
- On a huge range of property types
- No Early Repayment Fees
Why choose Together?
FlexibleYou're more than a credit score. If the sums show that you can afford the property, we do our best to make it happen.
TrustedWith nearly 50 years of lending experience under our belts, you can trust us to get things right for you.
Open-mindedUnlike many, we lend on properties like ex-council properties, high-rise flats and those made of non-standard materials.
SmartReceive updates on your application, upload files & e-sign most documents to open your Together account - all using our secure app.
0.90%Rates from 0.90%
70%Borrow up to 70% of the property's value
12 monthsAvailable over standard 12 months
✓No monthly payments.
*The maximum loan, rate and loan-to-value ratio offered may vary based on your individual circumstances.
Purchase your new home with a downsizing bridging loan
If you've found the perfect new home and want to move as soon as possible, you needn't be forced into a quick sale of your old property. Instead, you can use a bridging loan to try and get the best possible price. You'll then have up to 12 months to sell your old home and repay the loan in full.
There are no monthly payments and no early repayment charges. Instead, you'll just pay back what you borrow, plus any interest, in a lump sum using the proceeds of the sale of your previous home.
We use our common sense when deciding when we can lend – so we can be more flexible. For instance, we have no maximum age if you're using one of our bridging loans this way.
We understand every situation is unique
Here's the story of Bethany and Ben, two new customers we helped recently.
Bethany and her husband Ben left their office jobs in 2018 to set up a company of their own, which is now thriving. Last year they decided to sell their home and purchase a new build in their home town.
However, with the buyers of their existing property stuck in a chain, Bethany and Ben risked losing out on their dream home when trying to find a mortgage for moving home. Despite their perfect credit histories, their bank wouldn’t help as both Bethany and Ben are self-employed.
So Bethany and Ben came to Together, and we gave them a short-term bridging loan that effectively turned them into cash buyers to secure their new home. And when their own sale went through a few months later, they used the proceeds to pay off their bridging loan in full. Ready to see how we could help you?
0.85% per month
Time from application to funding
Common questions about Bridging Loans
What is a bridging loan?
A bridging loan is a short-term loan, which covers the gap between paying out for a new home before receiving the proceeds of the sale of another, they usually lasts up to 12 months.
Why might you choose a bridging loan?
A bridging loan is short-term, so you may choose one if you only need money temporarily – perhaps to sort out a cash flow problem, to bridge the gap between buying a property and securing a mortgage, or because you're intending to turn around a project quickly.
How much can I borrow, and how much deposit will I need?
We can lend up to 70% of your property’s value depending on, what you will be using the bridging loan for, and your personal circumstances. The maximum loan-to-value ratio we can offer may be reduced based on the nature of the property.
Can I apply for a bridging loan if I have poor credit?
If you’ve got less-than-perfect credit, such as a small blip that’s caused a big impact on your credit score – we’ll use our common sense when reviewing your application, and look at your credit history instead.
We can also ignore adverse credit that’s over 12 months old when it comes to deciding your interest rate.
Can I get a bridging loan if I’m retired?
Yes – we’ve no maximum age on our Bridging loans, and we’ll consider a wide range of income (including your pension) when it comes to assessing affordability.
So if you’ve found the perfect retirement property, you don’t need to wait around for your current one to sell, and you’ll have plenty of time to organise your move and make the transition gradually.
Can I get a bridging loan if I’m self-employed?
Whether you’re a sole trader, freelancer or side-hustler, we can accept self-employed applicants with just 12 months trading history, and you’ll get the same rates as someone with a regular income.
We’ll look at your last three months’ earnings, so even if you took advantage of the Self-Employed Income Support Scheme in 2020, you’ll still be treated as normal.
Can I get a bridging loan on land?
Yes – we can lend on land for a range of purposes. And if you’ve got planning permission in place, we have development finance options available which can last up to 24 months.
How do you decide my interest rate?
The rate you're offered may be influenced by several factors, including:
What you're using the bridging loan for.
The type and value of the property you're using to secure the loan.
How much you need to borrow (both in total, and as a percentage of your property's value).
Whether you have any other loans secured against the property, that won't be repaid by this loan.
Your credit history (but not your credit score).
How long does a bridging loan take to arrange?
We’ve got decades of experience in getting bridging cases over the line quickly – and much faster than a typical fixed-term loan or mortgage. This means a bridging loan could get you the cash you need while waiting for longer-term borrowing to be arranged.
Overall cost for comparison
For example: A bridging loan of £250,000 repayable after 12 months on a fixed rate of 13.08% would require a single payment of the capital borrowed plus the accrued interest totalling £289,843.38 including fees.
The total amount payable would be £289,843.38 made up of the loan amount (£250,000), plus interest on the loan (£34,843.38); arrangement fee (£5,000.00); and the redemption administration fee (£110.00).
The overall cost for comparison is 16.3% APRC representative.
The actual rate available will depend upon your circumstances. Ask us for a personalised illustration.