Quote Supermarket

Bridging finance

At Quote-Supermarket we aim to offer tailor-made bridging & commercial finance options for our customers.


Our product range

  • Residential and commercial bridging finance
  • Residential refurbishment finance
  • HMO funding
  • Development funding
  • Buy to Let


Our promise to you

To listen to you and act quickly on the information provided, using our extensive knowledge of the market and panel of flexible lenders

We will aim to offer a dedicated point of contact from application stage to completion of your loan


About bridging loans

When finance is required quickly for just a small amount of time, bridging loans are specifically designed to provide fast short term finance facilities for periods of between 1 to 18 months. Generally we provide bridging loans ranging from as little as £50,000 to £5 million, although we also have specialist niche facilities that can accommodate larger requirements, meaning that commercial bridging loan amounts exceeding £100 million are actually possible. Bridging loans are secured against the available equity in property, and one facility can use single or multiple properties as security.

The past year has seen bridging finance lending double! Low property values have led to more bridging loans being taken out to facilitate quick purchases of bargain properties when rapid completions have been a necessity. In addition, stricter lending criteria from the mainstream lenders has seen bridging loans being used as an alternative source of finance, especially to purchase or raise money secured against property that is in a poor state of repair.


Differences between open and closed bridging loans

When taking out a bridging loan you need to have an 'exit strategy' for how you intend to repay the loan at the end of the term. An exit strategy quite often involves the sale or refinancing of a property, the proceeds of which are used to repay your loan.

A closed bridging loan refers to a facility that will be cleared on a specific date. This would typically apply to bridging loans that are going to be cleared from the proceeds received from the sale of a property for which contracts have been exchanged and a completion date set. Closed bridging loans are a lower risk to lenders because they know exactly how and when they are going to be repaid.

In circumstances when bridging loans are required until a property has been sold but the sale date is unknown, these facilities are known as open bridging loans. Unless contracts have been exchanged a lender does not know when the loan will be repaid, and can only make an educated guess. This type of facility may have a time limit of 6 to 12 months placed on it and can be repaid anytime during this period.


Interest rates and other costs

The main cost is the monthly rate of interest being charged. When compared to longer term finance options this monthly interest charge is high and is the main reason why bridging loans should only be intended as a short term finance option.

In addition to the monthly interest charge most bridging loans charge an arrangement fee. This is usually charged as a percentage of the loan amount, is typically about 1 or 2 percent, and is added to the loan facility. Sometimes there can be an exit fee, which is charged as a percentage of the bridging loan amount.

Other costs would be legal fees which pay the lender’s solicitor to secure their charge on the security property (or properties) at land registry.

Valuation fees will need to be paid before a bridging loan is paid out. In the absence of a valuation report that is suitable for the lender one will need to be obtained. We will make sure that before requesting a valuation an acceptable bridging loan offer (subject to valuation) is in place.


Please contact us or apply online today to find the best finance deals!


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0121 351 2814


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Sat 10am - 2pm

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