A bridging loan is a short-term loan (usually up to 12 months) that can be secured against a property and is designed to ‘bridge the gap’ until longer-term finance can be arranged, or an underlying security is realised.

A bridging loan can be used to complete on a property or auction purchase, to bridge the gap between buying a property and securing a mortgage, or if you want to develop or refurbish a property project. See our products for more details.

Bridging loans have inherently flexible features which can make them an attractive alternative to mainstream lending. One of the most favourable aspects of a bridging loan is the speed in which it can be arranged.

You can use bridging loans for:

• Maintaining a place in a sale chain
• Unmortgageable properties e.g. no kitchen and bathroom.
• Dilapidated properties
• First time Investor and Developer considered
• Buying a Property at Auction
• For quick purchases when a bargain property deal comes along
• Buying a property with a short lease & Lease extension funding
• Ground up Development
• Refurbishment Properties
• Lend against the market value as opposed to the purchase price
• Cross Collateralisation – Able to use more than one security address to achieving 100% lending
• 2nd Charge lending
• No minimum Income required
• Adverse Credit considered
• Rescue & Recovery Deals
• Cash Buyer Only properties
• Freehold Flats
• Semi Commercial or Commercial Properties including Vacant shops
• 100% Refurbishment Finance
• Planning Gain Opportunities
• Airspace Development

Inflow understands there is no ‘one size fits all’ criteria when it comes to a bridging loan. We apply a combination of technology and manual underwriting to ensure the full understanding of your circumstances enabling us to provide fast, flexible property finance.

At Inflow, our processes are designed to make obtaining property finance simple. Terms can be agreed within hours with funds released typically in 15-20 days or much quicker if the circumstances require.

Step 1: You make an Enquiry and we issue clear Terms within 24 hours.
Step 2: Our team processes your Loan Application and instructs a Valuation on the property.
Step 3: We move onto Underwriting and Legal Due Diligence.
Step 4: Your loan is completed and your property journey begins.

Normally the following fees would apply:
Valuation fee: The surveyor’s cost for carrying out your property valuation.
Arrangement fee: The cost of setting up the loan, usually around 2% of the loan amount.
Admin fee: The cost of our administration of the loan.
Legal fee: usually charged at a set rate which pays our legal fees for completing the loan
Typically, there are no up-front fees, exit fees or early repayment charges. Please note valuation and legal fees will apply. All other fees can be deducted from the loan.

There 4 types of interest options available:
Retained: All the interest is paid in advance and is deducted from the gross loan amount.
Serviced: The interest is paid monthly, subject to income and affordability checks.
Part & Part: A combination of retained and serviced. For example for a 12-month loan term, 6 months interest could be retained with the remaining 6 months interest to be paid monthly.
Rolled: Pay all the interest at the end of the loan. Interest will be added to the loan balance and will be due on redemption.

Usually, a refinance or sale of the security property would enable exit of the bridging loan. Alternatively, you can use cash reserves to repay the bridging loan.
It is vital to have a strong exit strategy when applying for a bridging loan as it will assist in keeping the loan application process fast and flexible.

A bridging loan is normally unregulated when the use of the loan is for business or investment purposes.

Unregulated bridging loans can either be first charge or second charge. Unregulated lending falls under the exemptions set out in the Financial Services and Markets Act 2000 (Regulated Activities) Order 2001.

A bridging loan becomes regulated when the loan is secured against a property that is currently occupied, or intended to be occupied in the future, by the borrower or any member of their immediate family.

Inflow only provides unregulated loans.

We do not look at your income as a primary factor when assessing the loan application. We focus on the security property, the commercial viability of your project and a strong exit strategy, all of which can be more important than income.

Similar to income, we do not look at your credit as a primary factor when assessing the loan application. Our focus is on the security property, the commercial viability of your project and a strong exit strategy.

A First Legal Charge bridging loan allows a lender to principally secure money they have loaned to an individual or company on the security property. A legal charge is also known as a secured loan.

A Second Legal Charge bridging loan is secured against a property that already has a loan or mortgage outstanding. Second charge loans sometimes require consent from the first charge lender.

Auction finance is a type of bridging loan that’s specifically designed for buying property at auction. Our commercial and common-sense approach to auction finance means we can provide finance even when you’re self-employed, making your first investment purchase, or have less-than-perfect credit. Go to Auction Finance for more details.

With Inflow’s auction finance product, you can arrange the funding you require in advance of the auction. We can pre-approve your loan before or even during an auction, so before the hammer falls you know where you stand and can bid with confidence. Go to Auction Finance for more details.

Development finance is generally used to help acquire and fund the development of a property project whether residential or commercial. Development finance is likely the most appropriate form of property finance or bridging loan for ground-up developments, encompassing everything from a single unit project to a larger multi-unit scheme. Go to Development Finance for more details.

Yes. Inflow can offer finance towards the purchase of a property and then provide development or refurbishment finance for up to 100% of the construction costs. A full breakdown of the loan details, including all interest rates and fees is provided and agreed upfront meaning no hidden surprises during the term of the loan. Go to Refurbishment Finance for more details.

Terms from Inflow are flexible and can range from a minimum of 1 month to a maximum of 24 months. In addition to this, there are no fees or charges for early repayment.

We can consider ‘re-bridging’ or extending your existing bridging loan if required (subject to underwriting and additional due diligence).

Yes. Inflow will lend up to 75% LTV of the open market value or 85% of the purchase price, whichever is the lower amount.

Yes. We support the SME property developer and investor market; a key segment which is poorly and inefficiently served by traditional funding and other bridging loan lenders.

Our pricing is based on the individual merits of each application meaning each borrower obtains the most suitable and competitive interest rate. Our bridging loan rates normally range between 0.55% to 0.95% per month and the borrowing is arranged on an interest-only basis.

Generally, Inflow does not charge an Exit fee. We provide a clear and transparent fee structure meaning you will know all your loan costs from the outset.

As part of our assessment of your loan application, we usually require a valuation report on the intended security property. This is undertaken by an independent panel surveyor who then prepares a report for our underwriting review.
Inflow does offer a no survey bridging loan option for specific circumstances. Please see our product guide for more information.

We do not refer or recommend solicitors but would suggest finding a solicitor firm (with a minimum 3 SRA Managers) that has previously completed bridging loans for their clients, as this will make the process as smooth as possible.