First Charge Bridging Loans

A first charge bridging loan is secured against a property, giving the lender legal rights over it if the borrower defaults.

It’s a fast way to access capital, especially if you are looking to invest in a new property or raise funds quickly.

These loans normally last between a few weeks and 15 months, and are designed to help ‘bridge’ a financial gap in a property purchase.

The best part? They’re quicker to set up than traditional mortgages and have an LTV of up to 70%, so you can borrow what you need quickly.

At Blue Square Capital, we approve first charge loans up to £2,000,000 with an LTV of up to 70%.

We work quickly, aiming to get the capital in your account within 2 weeks.

So, what are you waiting for? Get in touch to find out more.

The key features of first charge bridging loans include:

Priority Claim: The loan is secured against a property, giving the lender legal rights over it if the borrower defaults.

Short-Term: These loans usually lasts for less than 15 months, making them ideal for ‘bridging’ financial gaps.

Quick Approval: First charge loans are much faster to arrange than traditional mortgages, giving investors access to quick capital.

Flexible Lending Criteria: First charge bridging loans are usually offered by unregulated bridging lenders, making them accessible to borrowers with unique needs.

Exit Strategy: Lenders will want to see a clear repayment plan before approving the loan, such as property sale or refinancing.

The benefits of first charge bridging loans include:

Quick access to funds: Perfect for investors looking to buy a property quickly or fund a renovation.

Flexible lending criteria: Easier to qualify for than traditional mortgages, especially if you have bad credit.

Fast approval: Approved faster than standard loans, allowing quick action on investment opportunities.

Higher borrowing limits: Since the loan is secured against a property, many lenders will allow higher borrowing limits.

Flexibility: These loans can be used for a number of reasons, including refinancing, property development or bridging financial transactions.

To apply for a first charge bridging loan, you’ll need to prepare the following:

1. Proof of identify
2. Company bank statements
3. Property details and valuation
4. Exit strategy, laying out how you plan to repay the loan

Then, submit your application to us. We aim to provide indicative turns within 24 hours but the more information you give us, the faster we can make the decision.

If approved, we’ll start the due diligence and draw up the legals. Once contracts are signed, we’ll aim to have the funds with you quickly, so you can kick start your project as soon as you’d like to.

When it comes to loan applications, we know our clients need capital, and fast.

The best way to make sure your application is accepted quickly is to provide us with all the information upfront. We’ll review the documents and aim to give you indicative terms within 24 hours.

Once we approve the loan, we’ll conduct our own checks and draw up the legal agreement. We know that time is of the essence, so we do everything we can to get the money in your account within 2 weeks.

A first charge bridging loan can be risky because it uses your property as collateral, meaning you could lose it if you’re unable to repay the loan.

However, repossession is a last resort, and we do everything we can to prevent this happening.

We work with our borrowers from the start, assessing their exit strategy to ensure they can repay the loan with no problems.

First charge bridging loans can be great tools for unlocking capital fast, so get in touch with us today to find out more.

At Blue Square Capital, we are always transparent about our costs and fees, so our borrowers don’t have any nasty surprises.

Unlike other lenders, we don’t charge early exit fees, so you don’t need to worry about being penalised if you pay us back early.  

We offer monthly interest rates starting from 0.95%, which stay fixed throughout the 15-month loan term.

Other costs to be aware of include:

• Arrangement fees (2% of the loan amount)
• Bank transfer fee (£25)
• Admin fee (£999)
• Valuation and survey fees (depends on property)
• Solicitor fees (depends on project)
• Exit fees (n/a)

Can I get a first charge bridging loan if I have bad credit?

Yes, it’s possible to get a first charge bridging loan with bad credit, as these loans are secured against a property.

We focus more on the property’s value and your exit strategy rather than just your credit history.

What happens if I can’t repay the loan on time?

If you can’t repay the loan on time, you may be liable to pay extra fees or penalties.

In the worst-case scenario, the lender has the right to repossess and sell the property to recover their money, however this is a last resort.

What can first charge bridging loans be used for?

First charge bridging loans can be used for a number of things, including buying new properties, renovations, auction buys, refinancing or temporary cash flow needs.

Do I need a property valuation for a first charge bridging loan?

Yes, we will want to see a formal property valuation in order for us to assess how much you can borrow. To get the loan approved quickly, it’s best to get the property valued by a professional upfront.