Redrock has worked with homemovers, developers, investors, and landlords since 2011 to arrange competitively-priced bridging loans to purchase residential property (whether or not it requires refurbishment or renovation intended for eventual residential letting use) or to raise capital.
We also help borrowers raise funds from the equity present in the property they own to clear tax liabilities to HMRC, to consolidate debt, to make repayments to creditors, to provide working capital to businesses, and for many other reasons.
Rates start from just 0.55% per month and we offer deals of up to 75% LTV (100% funding is available providing you have extra security you can offer which has sufficient equity within it).
Call us or use the contact form on the site to let us know how much you need to borrow.
Within around three hours of your initial enquiry, we’ll have an in-principle decision from a lender.
Your lender organises a valuation of the security you’ve offered. Upon satisfactory valuation, solicitors are engaged.
Once your solicitor has provided everything needed and you return the signed agreement, the funds are released.
Use a bridging loan to pay for property you intend to let out before finding a mortgage
Use the equity in your property portfolio to release cash to make further additions to your portfolio
Use a bridging loan to purchase and develop property you later sell or let out
Use to acquire property with a short-term lease to renovate the property and extend the lease to add value
Use to purchase property and fund the conversion from commercial to residential use
Residential property bridging loans are suitable for use in auctions – ask us for information
Use the equity in your property portfolio to release cash to raise funds for any reason
Loan to value (LTV): 75%
100% funding is available providing you have additional security with sufficient equity
Loan amount: £26,000 to £20m
Loan term: 3 to 24 months
Interest rates from: 0.55% per month
Interest options: serviced, retained, rolled-up
Exit strategy: sale or refinance
Decision: 24 hours
Completion: 10-14 days
Loans available in UK and Europe
Loan value based on security and property value
Available on first and second charges
Non-status and full status
residential property purchase to let out or sell
property purchase when renovation or refurbishment is required and what is intended for residential use
unmortgageable properties (for example, where the value is less than £50,000)
residential properties with very short remaining leases
converting commercial property into residential property
conversion of single residence properties into flats and HMOs (development funding may be more suitable depending on the size of the project – please get in touch)
general portfolio expansion
to stop bankruptcy proceeding
clearance of debts to creditors
company working capital
consolidation of existing debts
issues relating to probate
paying off due or overdue taxes to HMRC
re-financing of an expiring loan
to stop repossessions
A bridging loan is a secured short-term financial product which allows clients:
If you wish to purchase property which you intend to…
…a residential bridging loan provides you with the funding you require to purchase the property prior to arranging an occupier or buy-to-let mortgage on the property or prior to offering it for sale on the open market.
The types of property on which a residential bridging loan may be taken out include:
In many cases, a property purchased using residential bridging finance is unmortgageable because of its condition or because the value of the property is too low.
Residential bridging loans may also be used to fund the purchase of overseas properties and retirement properties.
Residential bridging loans may be taken out over a period of up to 24 months. You do not make monthly repayments on your bridging loan – instead, you pay it off on or before the end date of the loan from the proceeds of a mortgage you’ve arranged on the property or from the proceeds of a sale.
Your bridging loan provider will take first charge over the property you purchase meaning that, if you fail to repay the loan in full and on time, the property may be subject to repossession proceedings by your lender.
Residential bridging loans used to purchase property you intend to live in are regulated by the Financial Conduct Authority. All other residential bridging loans are unregulated.
The maximum length over which you can borrow money with a regulated bridging loan is 12 months. Redrock Commercial Finance is an FCA-regulated bridging loan provider – please click here to find out more.
Second charge bridging loans allow borrowers to have access to funding secured on residential property they already own.
The amount you can borrow with a second charge residential bridging loan depends on the value of the equity in the residential property you own. Equity is the difference between the market value of your property in its current state and the outstanding balance(s) remaining on any mortgages or loans secured against your property.
The main reasons given to us by our borrowers when applying for a second charge residential bridging loan include but are not limited to:
When applying for a second charge residential bridging loan, your lender will need to understand exactly how you intend to pay the loan back prior to accepting your request. The most frequently methods used by Redrock clients when repaying a second charge residential bridging loan are:
If you intend to repay a second charge bridging loan in a way not listed above, please contact us and we’ll be able to advice you on whether this is an exit plan that would be acceptable to one of the lenders on our panel.
If you wish to use your primary residential property as security, you will need to apply for a regulated bridging loan. Many homeowners use bridging finance to raise the funds they need to extend or substantially renovate the home they live in.
If this is what you intend to do, acceptable exits for funders (in addition to the standard exit methods listed above) include securing:
Many residential bridging loans are used to purchase a residential property which will then be refurbished or renovated. Please click to find out more about a refurbishment bridging loan as this may be more suitable for you.
If the work you intend to do on a property is substantial, development finance may offer you a better deal. Please let us know what your plans are for the property you wish to (purchase and) improve when you call or get in touch with us.
The bridge loan rates you’ll pay on your facility depend on a number of factors. For a personalised estimate on the monthly and overall interest you may pay, click for our residential bridging loan calculator.
To find the best bridging loan for your project, please call us on 020 3780 7610 or click here for our contact form.