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Bridging loans

Our extensive portfolio of bridging loans delivers the speed and flexibility needed to help get your client’s project safely over the line.

All of our loans are available as first or second charge, and have no early repayment charges.


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Using our own data, as well as statistics from the ASTL – Association of Short Term Lenders and other leading lenders, we produce the West One Bridging Index. Catch the latest commentary on the state of today’s bridging market, curated by a team of experts.

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The West One way

  • Highly competitive introducer fees – paid within three days of loan completion
  • Easy application process
  • Fast loan decisions
  • Loans from £30k to £10m+
  • Attractive commission rates – typically around 1% of the loan amount
  • Retained and rolled-up interest basis loans available
  • Loan to value up to 75%
  • No early redemption charges
  • A flexible approach – we consider borrowers the high street can't and judge each case purely on its merits

Frequently asked questions

The basics

What is a bridging loan?

A bridging loan is a short-term interest-only loan available to those that need immediate access to capital. Usually used for a property purchase, it is a loan to ‘bridge’ the gap while other finance (such as a mortgage) is secured by the borrower. Bridging finance is secured, meaning the borrower uses property (or land) as security to the lending institution.

Who can apply?

Any individual or limited company can apply for a bridging loan.

Who might use a bridging loan?

Bridging loans are mainly used by clients who need quick, short-term capital to fund a property purchase. They include those who:

  • need to complete quickly. This might include property developers, who often have the opportunity to secure a great deal if they can complete quickly.
  • buy through a property auction. Bridging finance is popular with those buying property at an auction. Here, completion has to take place within 28 days, which means traditional financing is not usually an option.
  • are in a broken property chain. A bridging loan enables a seller of one property to secure their new property before the sale of their existing property goes through.
  • want to buy an uninhabitable property. Traditional lenders will often not lend on a property if there is no kitchen, bathroom, central heating or running water (especially buy-to-let mortgages). A bridging lender will base its lending on the property’s value in its current condition, however. This enables the buyer to access the property and work on it to make it habitable.
  • are renovating or developing a current property. A property investor may want to renovate a property within a few months and either sell it on or refinance. A bridging loan can often be the perfect vehicle for this short-term capital requirement.
  • have to get planning permission. In order to obtain planning permission and secure development funding, the developer may need immediate access to capital.
  • need a lease extension. When a property has a short lease, a borrower will likely be refused a traditional mortgage. A bridging loan can be used to extend the lease, which then makes the property mortgageable through conventional lenders.

What is the difference between a first and second charge loan?

A ‘first charge’ is the primary mortgage or loan secured against a property. This takes precedence over all other finance secured against it. However, if there is sufficient equity in the property, a ‘second charge’ loan could be secured against it.

Criteria

Do you only lend on specific types of properties?

No. We lend on residential, semi-commercial and commercial properties and land. The construction, type or use for the property doesn’t matter either.

Are there any employment criteria for the borrower?

No.

Is my client subjected to a credit check?

A credit check is not carried out by West One unless we are given permission to do so by your client.

What is an exit route?

Since bridging loans are for the short-term, each client must have a plan in place to pay off the loan. This is known as an ‘exit route’. A viable exit route is a must on all bridging loan applications.

Terms

How long can a bridging loan be taken out for?

As a short-term finance solution, a regulated bridging loan is generally taken out for up to one year. However, it is not uncommon for some unregulated bridging loans to last for up to two years.

How much can be borrowed?

Typically, we lend from between £30k to £2.5m for a bridging loan, however we have vast experience in lending multi-million pound sums on referral.

Application process

When will my client find out if their application has been successful?

Our experience means that in most cases we will be able to confirm almost immediately whether your client’s application is likely to be successful.

What is the process once the application has been sent?

Once we receive the bridging finance application form (and the certified identification documents), we will issue indicative terms, which need to be signed by the client. We will then book a valuation. Once the valuation report is completed, we will instruct our solicitor to carry out all due diligence and provide a report. Funds will then be sent to the solicitor for completion.

How long will a bridging loan application take to complete?

From the initial enquiry through to completion, our average turnaround time is just two weeks.

How long does it take for a client to receive funds?

Each case is reviewed individually. However, if all the paperwork is complete then a client could receive funds in as little as 48 hours.

Fees, repayments & commission

Are there any upfront fees?

No. Although valuation fees will apply and other fees will be deducted from the loan.

What interest rate will the client pay?

This depends on the individual circumstances of the borrower. However, the interest rate ranges from between 0.55% to 1.5% for each month of the loan, and the borrowing is arranged on an interest-only basis.

Can the loan be repaid early?

Yes. Once the borrower secures longer term funding, or another exit – such as sale of property - the bridging loan can be paid early without penalty in most cases.

What commission does West One pay to intermediaries on a bridging loan?

Our long-standing relationship with lenders and our high loan conversion rates mean we are able to offer intermediaries some of the best commission rates on the market. Commission is typically around 1% of the loan amount.

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Cut through the red tape with our hassle-free application process. We can typically confirm almost immediately whether your client’s application is likely to be successful.

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