What is bridging finance?

A bridge loan (also known as bridging finance) is a fast short-term debt funding solution. It bridges the funding gap and is often used to quickly secure property purchases, generate cash flow for business purposes, or enhance a property's value through planning gain or refurbishment.

For more information see our bridging finance guide here.

Do you offer different bridging finance products?

Yes, we offer a number of bridging finance products depending on your requirements. We offer bridging finance options for: open market purchases; auction purchases; development exits; bridge-to-lets; refinances; refurbishments; land (with or without planning); and brdging for business purposes.

For more information, see our detailed bridging finance product offering here.

How much can I borrow?

We offer bridging loans 75% loan to value (LTV) and up to £10m . The LTV can increase if additional security is offered.

How much does a bridging finance cost?

Our bridge loan interest rates start from 0.85% pm (per month), we charge an arrangement fee and sometimes an exit fee. If you have been working with an introducer / broker, they will charge a fee which is deducted from the loan advance.

In addition to the above a valuation and legal fees will also be payable. Please see our tariff of charges for more information.

How long does it take to complete on a bridging loan?

We are experienced lenders and are setup to complete on bridging loans in as little as 3 days depending on the loan and how quickly your solicitor can provide us with the required information.

On average, our bridging loans typically complete in 2-3 weeks.

Do you charge any hidden fees?

We are very transparent and do not charge any hidden fees. All costs will be clearly stated within you offer letter / facility agreement. Please also see our tariff of charges here.

Are there any upfront costs?

Telos Capital does not charge a commitment or an admin fee.

However, when you decide to proceed with the loan, you will incur the following costs:

• Your own solicitors fees

• Our solicitors fees – you will need to provide our solicitor with an undertaking to pay their fees. Our solicitors fees will be deducted from your loan advance. If for any reason the loan does not proceed, our solicitor will still need to be paid their abortive costs.

• A valuation fee – this fee is payable directly to our appointed valuer and they will contact you to collect payment and arrange access to the security property.

Do you offer bridging finance to borrowers with a bad credit rating?

Yes. We do lend to borrowers with poor credit ratings.

What happens if I am unable to repay my bridging loan at the end of the term?

If you anticipate difficulties in repaying your bridging loan at the end of the term, it is important you contact us as soon as possible. We understand that unforeseen circumstances can arise, and we are committed to helping our borrowers find a viable solution. This could include providing a loan extension or taking additional security. The sooner you contact us, the more options we will have to find a solution.

Can I request additional funds / a further advance once my bridging loan is in place?

Yes, we do provide further advances. All further advances are subject to our lending terms and review. Please get in touch with us if you would like to request a further advance.

What is the difference between bridging finance and development finance?

Bridging and development loans are both types of short-term funding solutions but serve different purposes and have unique structures.

Bridging Loans are secured against the current value of the underlying property. Loans can be for several purposes ranging from assisting with purchasing a property from the auction through to providing liquidity for business purposes.

Bridging and development do share some similarities, where bridging finance can assist with light refurbishment projects where the value of the underlying project is not at risk.

Interest is either retained i.e., deducted from the loan advance, or serviced monthly.

Learn more about our bridging finance products.

Development loans on the other hand are secured against the future gross development value (GDV) of the underlying project. Development finance is structured to finance the construction costs and land costs.

Loan funds are drawn against the current land value in the first instance (the ‘land loan’) and then monthly in line with the project’s construction progress (the ‘construction loan’).

Given development loans are secured against the GDV and the construction programs are more complex than light refurbishments, we take a more active roll and monitor the construction progress via our appointed monitoring surveyor.  

Interest for development loans are rolled-up and paid at the end of the loan term.

Learn more about our development finance.

What are the advantages of bridging loans?

Bridging loans offer several benefits to borrowers, including:

• Speed: Loan funds can be drawdown quickly. We can typically complete on a bridging loan within 2 weeks or sooner, if required.

• Flexibility: Our bridging loans can be used for a wide variety of purposes (see our Bridging Finance Products & Uses for a full breakdown), secured against a most types of property (see our list of acceptable security) and loan terms can be from anywhere between 3 and 24 months.

• Short-Term: Our bridging loans structured for the short-term funding requirements but can also be extended.

• No monthly interest payments: Where interest is deducted from the loan advance, interest does not need to be serviced monthly. Depending on the loan terms, you may only have to pay the interest when you repay the loan.

What types of property do you lend against?

We take security over all types of property, including:

• Residential

• Mixed-Use

• Land (with and without planning permission)

• Office

• Commercial

• Retail

• Industrial such as warehousing

• Hotels

• HMOs

• Student Accommodation

• Care Homes, Nursing Homes and Retirement Living

• Sui Generis (such as Petrol Stations and Pubs)

How long does it take for Telos Capital to issue loan terms?

We aim to issues loan terms on the same day as receiving details and speaking with the borrower.

How can I apply for a bridging loan?

To apply, call us on 0207 459 4562, email us at contact@teloscapital.co or fill out our Bridging Loan Application Form.

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.