UK Bridge Loans

Bridge loans for customers in the UK and beyond. Arranging efficiently and quickly real estate bridge loan in the UK is our flagship service.

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FLEXIBLE
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    UK Bridging Loans

    Bridge Loans

    A “bridge” or “bridging” loan or finance is a short-term financing deal, taken by a customer quickly to cover an interval between two transactions, typically the buying of a property and then refinancing through a long-term mortgage or selling a property.

    Ploutos Associates has access and relations with more than 300 lenders. This provides us “whole of the market” coverage and enables us to achieve best terms for the customers. What makes us especially different from other finance brokers is an ability to access private lenders and family offices, which enables us to place almost all types of reasonable real estate risks.

    Apart from smaller bridging firms, family offices and private lenders, we are also working with extremely large direct lending institutions, some of which start considering loans from £100m onwards. This gives us one of the widest deal size capabilities, when we can place deals as small as £50k and as large as £2bn from a single lender. We work equally well with first and second charge bridge lenders.

    Here Are Some of Capabilities for Bridging Finance

    Bridging loans 1

    The highest
    level of service

    Customers who come to us with a need to borrow also see a patient and friendly approach when we listen and spend time in order to understand the needs of our customers.

    Bridging finance 1

    Whole market
    approach

    More than 300 quick private direct lenders, including niche family offices and private individual lenders that lend quickly and in flexible manner with money-in-the-bank profiles.

    Bridge debt 1

    Widest deal
    size range

    We are equally strong with quick smaller loans (£100k-£10m), fast medium size loans (£10m-100m) and speedy very large loans (£100m-£3bn). More than £3bn deals closed.

    Bridging debt 1

    Fastest execution

    Working with some of the quickest lenders in the market: 24-hour to term sheets and sometimes 48-72 hours to completions and money transferred for the needs of the project.

    Bridge credit 1

    Highest LTV

    In the UK, up to 90% of purchase price / 100% refurbishment / extension costs covered. Different metrics apply for properties in other countries.

    Bridging credit 1

    Affordable

    In the UK, monthly interest rates could be as low as 0.43% (5.16% APR and additional fees apply) for bridging deals and could be lower for development and term deals.

    Borrow on bridge basis 1

    Overseas and local
    customers accepted

    We do only unregulated quick loans for either corporate borrowers or for individuals for business/investment purposes from money-rich lenders.

    Bridge Loans 2

    Top investment
    bankers

    Team of top ex-investment bankers and private debt lenders with track record of more than £3bn in deals closed. We assist throughout the loan application.

    Bridging loans 2

    All types of
    collateral

    All types of real estate / liquid financial assets (shares, bonds, ETFs, cryptocurrency) / luxury items collateral (jewellery, fine art, rare wine collections etc) / corporate receivables / debtor book or stock.

    Bridging finance 3

    The highest
    level of service

    Customers who come to us with a need to borrow also see a patient and friendly approach when we listen and spend time in order to understand the needs of our customers.

    Bridge debt 2

    Whole market
    approach

    More than 300 quick private direct lenders, including niche family offices and private individual lenders that lend quickly and in flexible manner with money-in-the-bank profiles.

    Bridging debt 2

    Widest deal
    size range

    We are equally strong with quick smaller loans (£100k-£10m), fast medium size loans (£10m-100m) and speedy very large loans (£100m-£3bn). More than £3bn deals closed.

    Bridge credit 2

    Fastest execution

    Working with some of the quickest lenders in the market: 24-hour to term sheets and sometimes 48-72 hours to completions and money transferred for the needs of the project.

    Bridging credit

    Highest LTV

    In the UK, up to 90% of purchase price / 100% refurbishment / extension costs covered. Different metrics apply for properties in other countries.

    Borrow on bridge basis 2

    Affordable

    In the UK, monthly interest rates could be as low as 0.43% (5.16% APR and additional fees apply) for bridging deals and could be lower for development and term deals.

    Bridge Loans 3

    Overseas and local
    customers accepted

    We do only unregulated quick loans for either corporate borrowers or for individuals for business/investment purposes from money-rich lenders.

    Bridging loans 3

    Top investment
    bankers

    Team of top ex-investment bankers and private debt lenders with track record of more than £3bn in deals closed. We assist throughout the loan application.

    Bridging finance 4

    All types of
    collateral

    All types of real estate / liquid financial assets (shares, bonds, ETFs, cryptocurrency) / luxury items collateral (jewellery, fine art, rare wine collections etc) / corporate receivables / debtor book or stock.

    Finance for Overseas Clients

    Financing real estate for overseas client is one of our specialities. With growing rate of international uncertainty, UK property is considered one of the safest and stable asset classes. This is why many wealthy individuals, businesses and institutions continue investing in the UK property at growing rate.

    Bridge debt 3
    Deal size £100k–£1bn

    For many overseas clients UK real estate is an attractive asset class.

    Very often, overseas clients looking to acquire UK real estate, find it difficult to obtain mortgages or other types of financing. Sometimes even if a mortgage could be provided, the process can take more than 5-6 months and the criteria is very stringent. Finally, even when the mortgage is provided, it may cover very small portion of acquisition price, such as 35-40% of acquisition price.

    In addition, overseas clients may also come across to other difficulties, including foreign exchange rates, transferring the funds, compliance, source of funds verifications, notarisations and many other complications.

    2-Stage Process

    In approaching real estate finance for overseas client, we propose a two-stage process:

    Bridging debt 3
    Stage 1

    Finance quickly UK real estate acquisition with short-term loan (typically 9-18 months), with interest retained or rolled (or could be serviced), typically covering around 65-75% (around 2/3) of the property open market value, with no interest service for 12 months. If the client could service the interest the Day 1 advance will be higher.

    Please note:

    The funding is offered on an open market value basis, so if the client acquires the property at say 10% discount to the market, the funding metric will increase, and equity need decrease. We have funded deals at 90% of purchase price.
    If the property needs refurbishment, extension, or any other works, resulting in value appreciation, our lenders will also cover 100% of refurbishment costs.

    Although the cost of this type of finance (rates differ from lender to lender) may seem high, we would take it in the context of overall real estate funding strategy, because person’s equity is the most expensive source of funding. In addition, this funding is provided within 2-3 weeks (could be shorter depending on the information available for the application) and this means if acquisition is negotiated on “cash on the table basis”, the acquisition price could compensate for such cost.

    We advise incorporating a UK limited liability company in order to acquire the property. If needed we could refer to incorporation advisors to assist with such process.

    For transactions above £20m, if the client has property in Western Europe (Ireland, Austria, Germany, Switzerland, France, Spain, Portugal, Benelux, Scandinavia) or liquid marketable securities (shares, bonds, ETFs, Mutual funds, liquid cryptocurrency) or could produce home country bank guarantees or other types of hard collateral (gold, fine art, jewellery, etc) we could finance transactions up to 100% of purchase cost.

    Bridge credit 3
    Stage 2

    Once the property is renovated and tenanted and the business (referred to the company owning the property) starts producing rental income and in some cases other type of income (for instance data centres, student accommodation, medical clinic or a hotel could generate auxiliary income), we will assist in refinancing the short-term loans with longer-term mortgages at a favourable rate. Please note we do not get involved in regulated mortgages but could assist with unregulated commercial mortgages or business term facilities or refer to specialised brokers in this area. Unsecured business loans could also be available, depending on the type of business.

    Bridging credit 3

    Bridge Loans for Home Movers

    If you bought a new house and waiting to sell your existing house or raise short-term finance to finance your down payment of a new house or liked a new house, but mortgage is taking time to get bridging loan approved or the new house is not mortgageable and needs acquiring and doing up.

    For all these purposes you might need a bridge loan. We can offer both first charge and second charge bridge loans up to 80% of collateral value.

    If the home you want is in a competitive housing market, then home sellers typically won’t agree to contingencies from the buyer. To solve the buy before you sell quandary, a bridge loan might be a good solution to fill the gap.

    Borrow on bridge basis 4

    Fast loans against luxury assets

    Many purchase contracts have contingencies that allow the buyer to agree to the terms only if certain actions occur. For example, a buyer may not have to go through with the purchase of the new home they are in contract for unless they’re able to sell their old home first.

    This gives the home buyer protection in the event no one buys their old home, or if nobody is willing to buy the property at the terms they desire. But when a home seller won’t accept the buyer’s contingency, a bridge loan might be the next best way to finance the new home.

    Bridge Loans 4

    Bridge Loans for Developers

    On bridge (or bridging) loan side, developers are one of our core customers types, as they often require fast financing solutions for acquiring sites or for exiting. For exit loans, we work with lenders which are CBILS/RLS registered providers.

    • Acquire the land with (or without) full planning or building with permitted development rights
    • Borrow to complete the development: up to 75% of GDV
    • Exit bridges: up to 75% of GDV
    • Acquire pre-planning land
    Bridging loans 4

    Depending on the financial strength and track record of the developer a framework or programmatic facility could be obtained when a developer establishes a partnership with a lender and this lender helps the developer to secure multiple projects.

    Maybe You Would Like to Know

    We work more than 300 bridging finance lenders and this is why the range is very wide, starting from £100k and more than £1bn. There are three types of lenders we work with: (a) smaller bridging lenders (£100k-£10m), (a) fast medium size lenders (£10m-100m) and (b) speedy very large lenders (£100m-£3bn.
    There are many reasons why bridging loans are used, including: time-pressed acquisition, auction finance, asset is mortgageable because of level of dilapidation, acquisition pre-planning and then investment into planning, exit bridge- when a developer needs time to liquidate units built and many other legal reasons.
    Speedy execution is our strongest point. We have for instance closed deals in 48 hours. We also generated 7 term sheets within 3-4 hours. Please tell us when your bridging loan will be required and we will hard work to meet that date. We are very fast and efficient, so if you need your bridging loan this week, please give us a call. We will let you know in advance on the timing of the loan.
    This is due to knowledge, experience, relations with fastest moving bridging lenders, very efficient internal processing system and a hard-working, well organised team. We are also very used to super urgent and niche situations, when a speedy solution is needed or the lender is required to offer flexibility.
    We could place deals with all types of collateral, including residential/PRS/HMO, PBSA, land with/without planning, commercial, mixed use, hospitality/leisure, healthcare, educational, agriculture, logistics/industrial, datacentres etc. Don't worry about the state of repair or construction halfway through, our lenders are very flexible and accept various level of security. We let the investors know the state of repair or sometimes there could be cladding issues affecting asset’s mortgageability.
    Bridge lenders look primarily at security and could take more flexible approach on customers. We have arranged financing for clients with such types of adverse credit events in their backgrounds, as criminal record, County Court Judgements (CCJs), default credit records, arrears, and discharged bankruptcies. It is important to avert us in advance on any adverse credit events so that we could manage discussions with the lenders.
    In our experience, they are usually structured on behalf of limited liability company or a partnership which is acquiring (or already owns) an asset which will serve as security for the loan.
    The bridging debt facility can be organised as a first charge or second charge and sometimes even as a third charge loan, provided that there is still sufficient equity in the property and hence the customer could use an existing real estate asset on the second charge basis. Lenders consider security also on the level of liquidity of such an asset.
    Overseas customers will qualify for a loan when buying a UK property. It is usually advisable to structure the loan through a limited liability company. Given the client’s circumstances, bridge loan could be used to obtain higher leverage and hence reduce the need for equity or use the same equity to acquire a much larger asset.
    A typical bridge loan usually has an arrangement fee, a brokerage fee, interest rate and sometimes an exit fee. Although this seems like a lot of fees and costs, it is fair to note that in last few years the cost of bridge loans has come down substantially from more than 1.2% per month to as low as 0.43% per month. Once a suitable loan is secured a small application fee is involved. If there is already a valuation in place, there are usually no additional valuation fees, if such report is acceptable to the lender. Loans also involve small legal costs. CBILS/RLS registered providers can make the loans even cheaper.
    Yes absolutely, provided that there are no arrears with the current loan and there is enough coverage from collateral perspective for an additional loan. In addition, if the customer decided to borrow in order buy an additional property and the current collateral allows for an additional leverage, there might be a situation when a new loan from the same lender finances the new acquisition at 100% level.
    Yes of course, subject to pre-agreed early repayment charges. Of course, capital repayment will result in reduced debt service requirements.
    This depends on your preferences. Full or partial retaining or rolling the interest is a standard industry practice. For instance, a client is able to service only £5k on a monthly basis and the loan required £10k. In this case, the loan is structured as partially serviced monthly and partially retained. Possibility of a fully retained deal (without any monthly interest charge) is one of the advantages of a bridging loan facility. Imagine a borrower is planning to acquire a bad-condition house, refurbish it and then rent, generating a good income. In these circumstances, the loan is obtained on retained basis to cover acquisition and refurbishment costs. The time is given to find tenants and then the bridge is refinanced through a buy-to-let mortgages. Please note, we are not active in regulated mortgages we do not offer regulated advice.
    Yes of course. We adhere to the highest standards of personal information protection. We also use constantly non-disclosure and confidentiality agreements with the lenders whenever applicable. Ploutos Associates adheres to the highest standards of personal information protection as ascribed by General Data Protection Regulation (GDPR) rules.

    A closed bridge loan is one that's taken out when there's an ensured exit date and event, or date when the credit will be reimbursed. An example of an ensured exit date would be the date of completion for a real estate deal having exchanged contracts or a bank approved the mortgage loan but needs time to technically process it internally and has indicated the time of completion. When taking out a bridging debt under these circumstances an ensured exit date can be given. This sort of bridging advance is clearly less hazardous to both the lender and the borrower, and this is often reflected within the loaning rates and charges.

    The opposite of closed bridge loan is an open bridging deal. An open bridging advance does not have an ensured exit date and thus a borrower can only show to the lender a guess of likely timing during which the bridging credit facility will be required. An illustration of an open bridging advance would be when the borrower is selling a property, but there are no affirmed buyers. Open bridging credits are a riskier suggestion for both the investor, who does not know when to expect repayment of the loan and how many months interest he will need to pay.

    Mezzanine loan may be a strategy of raising financing and could be not only for bridging, but also development or term loan purposes. This sort of finance facility is for instance utilized by real estate developers to assist with funding a building venture. Ordinarily most of the funding reserves will be given by a primary loan provider and the rest will be from the mezzanine loan specialist and the developer equity. The mezzanine loan specialist will take a second charge mortgage, behind the primary first-charge lender. Depending on the type of security, the level of loans varies.
    Each lender is different in their approach to LTVs. For residential assets the maximum LTVs are 75-80% of the open market value (or OMV). So, if a person is buying the asset at a purchase price (PP) say at 20% below OMV, up to 90% of PP could be achieved. 90% of PP is especially common in auction properties. For such high leverage transactions, lender’s interest rate and fees could vary depending on the type of property, timing, and experience and financial strength of the borrower. We constantly check for best rates. We also work with other brokers in order to expand our reach and cover wider market and array of services.
    Asset refinancing may be a strategy utilized by businesses or entrepreneurs to release some of the equity contained inside an asset like real estate, equipment, a vehicle, and other assets. Asset refinancing is usually organized on assets that are already owned and money is disbursed on the refinance. On refinancing deals, lenders usually pay the previous lender and also pay the asset owner as an equity release mechanism.
    In many bridging finance transactions, standard property-level landowner insurance might be needed. Also if refurbishment is involved insurance might be needed to protect against completion risks. Lenders also check the level of indemnity insurance of valuation consultants. If the level of indemnity insurance is lower that the loan size, the candidacy of the valuation consultant might be dismissed.
    Yes, we usually give customers a possibility to compare the deals offered by different lenders and assets against which the loan is secured. When customers compare, we explain to them the differences between the deals but also the level of service offered by the lender and their financial strength.
    We are using internal tools to assess the value of the underlying collateral and experience and background of the borrower. We are also using widely available information on industry trends, indices, and capital flows in order to assess early on potential risks.
    Yes, once all the deal-related information is provided, we have an internal calculator which could count the exact cost associated with the deal. The calculator will consider the term of the deal, fees, monthly interest rate and other associated costs.

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