What are Bridging Loans?

Bridging loans are fast, short-term and flexible property loans used to fill / ‘bridge’ gaps in funding and generate cashflow. They are commonly used by individuals or companies for purposes such as quickly securing property purchases, generating cash flow for business purposes, or enhancing a property's value through planning gain or refurbishment.

Bridging loans can be secured against various types of properties, including residential, commercial, and industrial. Bridging loans can be structured as either first charge loans, where the loan has first-ranking security, or as second charge loans, where they rank behind an existing first charge loan.

The interest on a bridging loan can either be deducted from the gross loan advance or serviced/paid on a monthly basis.

Bridging loans can complete in a matter of days depending on the required level of due diligence and the complexity of the transaction. Loans terms typically range from 3 to 12 months (or longer depending on the borrower’s requirements).

Owing to their short-term nature, bridging loans are generally repaid in full (bullet repayment) through the sale of the underlying security property, other property assets held by the borrower, or via refinancing with another loan product, such as a buy-to-let mortgage.

How can I apply for a Bridging Loan?

To apply, 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 the application process, see our Bridging Loan Application Process page. For more information about Bridging Loans, see our Bridging Finance page.