Bridging Finance Overview

Bridging finance is often used as a short-term funding solution to quickly secure property purchases, generate cash flow for business purposes, or enhance a property's value through planning gain or refurbishment.

Bridging loans can be secured against all types of property.

Our bridging finance interest rates start from 0.85% per month and allow for borrowing up to 75% LTV (Loan to Value).

Depending on a borrower's requirements and circumstances, interest will either be deducted from the Gross Loan Advance (for the term of the loan) or serviced monthly. If serviced, the borrower will need to demonstrate they have the liquidity/income to service the interest for the term of the loan; i.e., we will be means-test the borrower.

Bridging loan terms typically range from 3 to 12 months with borrowers typically able to repay anytime.

Borrowers are either individuals or limited companies. If the borrower is a limited company, we will request personal guarantees and a company debenture as additional security.

We require RICS ‘Red Book’ valuations of the security property. The valuation will provide a 180-day value (open-market) and a 90-day restrict sales period value. The valuation fee is payable by the borrower and cost starts from around £500 depending on the size and complexity of the security.

In addition to the valuation, borrowers will also be required to pay for our legal fees. The amount ranges depending of the size and complexity, but typically start from £1,500.

Bridging loans can complete in a matter of days, depending on the required level of due diligence and the complexity of the transaction.

Exits or loan repayments are typically as a result of sale of the underlying security (or other assets), or refinance to another loan.

We will ask borrowers to demonstrate that there is a viable exit in place; in other words, a feasible route for the loan to be repaid. If the borrower plans on repaying the loan by selling the underlying security, we would look for confirmation the security can be sold at the projected price and within a reasonable timeframe.

Bridging Finance Products

For more information about obtaining a bridging loan from us see our Bridging Finance page, and for a breakdown of you bridging products see our Bridging Finance Products page.

How can I apply for an bridging loan?

To apply or discuss your bridging loan requirements, call us on 0207 459 4562 or email us at contact@teloscapital.co.

If your loan meets our lending criteria, we will start the application process. For more information about this process, see our Bridging Loan Application Process..

See our Bridging Finance FAQs for more information.