Bridging loans.

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.

We can lend up to 70% LTV for most of our bridging products (both regulated and unregulated), apart from our unregulated residential first charge bridge loans where we can lend up to a maximum of 75% LTV. Maximum loan size depends on what your client will be using the bridging loan for, and their personal circumstances. The maximum loan-to-value ratio we can offer may be reduced based on the nature of the property.

If they'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.

The rate your client is offered may be influenced by several factors, including:

• What they're using the bridging loan for.

• The type and value of the property they're using to secure the loan.

• How much they need to borrow (both in total, and as a percentage of their property's value).

• Whether they have any other loans secured against the property, that won't be repaid by this loan.

• Their credit history (but not your credit score).

A bridging loan is short-term, so your client may choose one if they 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 they’re intending to turn around a project quickly.

Watch our video – How to speed up my client’s bridging loan applications with Michael Schofield – Underwriting Director to find out more about getting the best outcome for your customer. You can also visit our Chalk intermediary resource hub for more information on how to submit the perfectly packaged case.

Yes – we can lend on land for a range of purposes. And if your client has planning permission in place, we have development finance options available which can last up to 24 months.

Yes – we’ve no maximum age on some* of our Bridging loans, and we’ll consider a wide range of income (including pension) when it comes to assessing affordability.
If your client has found the perfect retirement property, they won’t need to wait around for their current property to sell, and they’ll have plenty of time to organise their move and make the transition gradually.

*It’s worth noting there is a maximum age cap of 85 years old (at end of term) on our regulated bridging loans, and 80 years old (at end of term) on our unregulated bridging loans if your client is employed and income is required. 

Yes, if your client is a sole trader, freelancer or has multiple income streams we can accept self-employed applicants with just 12 months trading history, and they’ll get the same rates as someone with a regular income.

We’ll look at their last three months’ earnings, so even if they took advantage of the Self-Employed Income Support Scheme in 2020, they’ll still be treated as normal.