YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE.

Regulated Bridging Mortgages

Flexible short-term finance

A bridging loan is often used to ‘bridge the gap’ between the completion of a sale and accessing the credit needed to make a purchase – a fantastic option if you don’t want to lose out on your dream home due to unforeseen delays.

Thanks to Shawbrook’s flexible approach, this short-term funding can also be used for other purposes, for when speed is of the essence or finance is needed for a short amount of time. 

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What can a Shawbrook regulated bridging loan be used for?

  • To purchase an auction property
  • To raise funds on your current property to fund your next property purchase
    Private occupation only
  • To downsize your property
  • Divorce settlement
    Subject to terms of the Financial Settlement Order in place
  • Light refurbishment
    When the property does not comply with standard residential mortgage requirements
  • To break a property chain
What can a Shawbrook regulated bridging loan be used for?
-0.25%
We are committed to building long-term relationships. That’s why we offer existing Shawbrook customers a 0.25% discount on your arrangement fee for any subsequent mortgage you take out with us.

Complete transparency at every stage – no unexpected rate increases or fees.

  • Up to 70% LTV
  • Loans from £50k to £5m
  • Maximum term of 12 months
  • No minimum term and no early repayment charges
  • No minimum interest
  • Interest is rolled up (interest repayments are payable on exit)
Complete transparency
Please note that we will require a property valuation. Valuation fees will be payable and can be confirmed by your broker prior to applying. The cost will be dependent on property location and value.

Representative Example

A bridging loan of £987,000 repayable after 12 months on a fixed rate of 8.28% would require a single payment of the capital borrowed (£930,347.73) plus the accrued interest (£53,859.07), the arrangement fee (£19,246.50), the broker fee (£11,200), telegraphic transfer fee (£20) and legal fees (£1,895), totalling £1,016,568.50.

The total amount payable would be £1,019,226.50 made up of the amount above (£1,016,568.50) plus valuation fees (£1,680), title insurance (£878) and the redemption fee (£100).

The overall cost for comparison is 14.8% APRC representative

The actual rate available will depend on your circumstances. Fees may vary. Ask us for a personalised illustration.

Last updated: 5th January 2021

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Best Short Term Lender NACFB, 2018 – 2019

Best Bridging Lender What Mortgage Awards 2016 – 2018

Scenario: Chain break*

John & Kirsty Smith, young couple

Planning to start a family, John and Kirsty want to move from their current two-bed to a bigger property close to good schools. They find a four-bedroom house, but their own property is tied up in a long chain. Their mortgage adviser helps them secure a regulated bridge. Their old house sells quickly and having arranged a mortgage on their new home, they use the funds to fully repay the regulated bridge with no early repayment charges.

*For illustration purposes only

Scenario

Scenario: Downsizing*

Geoff & Elizabeth Jones, Retired teachers

Mr & Mrs Jones have owned their house for 25 years. Their three children have flown the nest and they want to downsize as the property is too big for their current needs. They find their dream cottage that requires some light refurbishment before they can move in but they do not want to wait for their existing property to sell as they may lose out to a rival homebuyer. 

After securing a bridging loan, they complete the sale of their existing property six months later, pay down the finance and are happily settled in their newly refurbished home without the worry of waiting nervously through numerous property viewings.

*For illustration purposes only

Scenario 2

The next steps

If you’ve decided to make your property dreams a reality, using a mortgage broker would be the sensible option. Why? If you’re unfamiliar with the complexities of the product landscape, a mortgage broker can help you navigate this to find the best deal for you. If you are short on time, your broker can do the heavy lifting for you. They will gather all relevant information, and comprehensively package your application to give it the best chance of completing quickly with the chosen lender.

So, if you make an enquiry via our website, with your consent we will transfer you to one of our trusted broker partners. From here they will research the best options for you, and should the most suitable deal be with Shawbrook, they will not, in most circumstances, charge a broker fee*.

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* This offer only applies to Shawbrook Buy-to-Let, Commercial Investment, and Unregulated/Regulated Bridging loans. In certain circumstances, such as cases involving complicated ownership structures like on/offshore trusts, or for ex-pat customers, a broker fee may apply given the level of work required in these cases. The broker will outline any fees payable at the outset.

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