The improving economic climate and growing bridging loan availability have led to bridging finance becoming an increasingly appealing alternative finance option for investors and businesses and the cost of these types of loans have fallen dramatically in the last few years.

Bridging loans are popular for a number of purposes, they are being used to support residential and commercial property transactions, auction purchases, renovation and development projects.

A1 Commercial Finance have an excellent reputation which is built on providing quick and cost effective finance where we can usually provide decisions the same working day and move quickly in partnership with the client to get the deal done quickly and without any fuss.

How A1 Commercial Finance can find the right bridging loan for you?

We can fund short term bridging loans on residential property, commercial property and land. Our bridging solution is ideal for developers who need to move quickly, perhaps to buy a property at auction or to ensure a fast completion before mortgage drawdown. They are also used for refurbishment and renovation when it would be difficult to finance this from the existing mortgage arrangement.

Types of short term commercial loans

Residential bridging loans

We are able to finance the acquisition of a residential property that will NOT be occupied by the Borrower or their family. This includes HMO’s (ouses in multiple occupation), Buy to Lets and situations where the borrowers need to bridge another loan to buy another property before they have sold their current one.

Refurbishment bridging loans

We offer short term solutions where banks might be averse to lend to this type of market. If you or your client are looking to refurbish a buy-to-let property,or carry out a conversion with the intention of creating value and then selling or re-mortgaging the property with a mainstream lender, our residential investment products can help facilitate the funding required.

Commercial bridging loans

Our commercial bridging loan products for commercial property acquisition and refurbishment can ensure that potentially lucrative investment opportunities are not missed. One feature of commercial property loans is the ability to buy a city centre commercial unit and develop it into residential living without the need for lengthy planning permission. This is known as PDR or Permitted Development Rights to give it its full title and it allows the developer to purchase the property or asset without the need for planning permission.

Property Development Finance

We are able to finance quality smaller development projects where we have certainty over exit via a mainstream lender or a contracted sale. We pride ourselves on understanding the projects, ensuring the Borrower has sufficient funds in place to complete the project and on how quickly we are able to deliver funds to our clients. We have created flexible funding solutions for experienced house builders on residential and mixed- use developments.

Why A1 Commercial Finance?

A1 offer affordable payment options catering for most cash flow requirements. In conjunction with our lenders, we take first legal charges over the property or land and we are aware that every bridging loan is different and so we consider all cases on their own merit.

We work with a number of smaller, private lenders who lend their own funds so we don’t always have to go through one of the bigger firms who may be a lot stricter on who they lend to. Usually we will be able to issue an indicative quote straight away, usually within an hour of our discussion.

Typical questions regarding bridging finance

What is bridging finance?

It is an interest only short term loan secured on land or property. We will secure by way of a first charge.

What is a first charge?

A first charge is the primary mortgage or loan secured against the property which takes precedence over all other finance secured against it.

What are the main uses of bridging loans?

Bridging loans can be used in both commercial and residential property transactions. Homebuyers, home builders, property converters, landlords, property developers and investors can use the short term loan.

Whether buying a property, building a property or raising funds for a refurbishment project, short term bridging finance can be an option. We offer non-regulated bridging finance and our products are not available if you or a member of your family plan to live in the property now or in the future.

I’m buying a property at auction and need funds quickly, is bridging finance an option?

Bridging is ideal for use when buying a property at auction as borrowers are able to gain access to funds quickly which is a necessity with auction purchases.

Where do you get your funds from?

A1 Commercial Finance has access to a range of funds which are usually provided by both mainstream lenders and private investors.

How much can I borrow?

As long as you have sufficient security, funding is generally available for up to 70% of loan to value (LTV) or for development finance, 65% of Gross Development Value (GDV). Some lenders will consider lending a higher percentage at the beginning of a project if significant value is bring created and the final repayment is estimated to be less than 65% of GDV.

Which parts of the UK are these loans available?

Most bridging providers will only lend against mainland property in England, Scotland and Wales.

How long can I take a loan for?

A bridging loan is designed to be short term and is generally taken out for a term of between 1 and 12 months but can go up to 18 months for development finance deals.

What is the minimum amount you will lend?


What interest rate will I pay?

Rates will depend on a number of factors including the loan to value ratio and the quality of the security, but can typically range between 0.55% – 2% per month. The interest rates on bridging loans are typically higher than standard/normal mortgages as they often carry more risk to the lender. You can check out some typical bridging rates at the bottom of our property loans page.

Is a valuation required?

Yes. The fee is payable by the borrower directly to the lender and will vary depending on the type of property, location and value.

How long will it take to get a decision?

If you have supplied all the necessary information we need, in most cases we will give you an immediate decision.

Will I need a solicitor?

The chosen lender will instruct a solicitor to act for them to investigate title, prepare the loan agreement and to execute the mortgage debenture and guarantee documents as defined in the Decision in Principle (Dip). They will also register the charge on the property and all such legal fees will be borne by the borrower. The legal fees are payable whether the loan proceeds or not. It is recommended that the borrower obtains independent legal advice prior to signing any legal documents and entering into a bridging loan. The process provides protection for both the borrower and the lender.

Can I repay the loan early?

Yes, you can repay the loan early usually without penalty.

What is an exit route?

An exit route is a predetermined strategy to enable you to receive funds to pay back your loan within the required term. A sound and viable exit plan is essential in any bridging loan application.


As you can see, bridging finance can be a complex affair but we hope that this guide will allow you to make an informed decision about which type of commercial finance you may need. To apply for a loan through A1 Commercial Finance, visit our contact page.

About A1 Commercial Finance

A1 are experts in business and commercial finance. With a choice of over 200 lenders, we are absolutely certain that we can find and fund the right loan, whatever the reason, for SME’s in the UK who are looking to grow their businesses.