Bridging Loans in Newcastle

Need quick funding in Newcastle?

A bridging loan can be the perfect solution for anyone in Newcastle looking to bridge a financial gap, whether you’re securing a new BTL property or need short-term funds for other business investments.

With flexible terms and quick processing times, a bridging loan in Newcastle with Blue Square Capital can give you the financial flexibility you need to move forward with your plans in Newcastle’s property market.

We understand that when it comes to property purchases, you need to act quickly.

Once you submit your bridging loan application, we’ll get indicative terms to you within 24 hours. If we go ahead, we’ll aim to have the funds with you within 2 weeks.

To help us make a quick decision, we ask that you send us:

• Official ID
• Your financial accounts
• A professional valuation of the property being used as collateral
• Details of your exit strategy
• Proof of deposit funds

Then we can get back to you as quickly as possible!

With Blue Square Capital, you can borrow between £250,000 and £2,000,000, with a maximum loan-to-value (LTV) of up to 70%.

This means you can borrow up to 70% of the value of the property you’re using as security for the loan. The remaining 30% would need to come from you in the form of a cash deposit.

However, we assess each project on a case-by-case basis to decide the LTV that we feel comfortable lending.

Absolutely! You can use a bridging loan for both residential and commercial properties in Newcastle. These loans are versatile and offer quick access to funds, making them perfect for purchasing or funding property developments.

For residential properties, a bridging loan is helpful if you need to secure a new home before selling your current one or if you’re involved in property development, such as renovations.

On the commercial side, it can be used to quickly buy office spaces, retail properties or for development projects.

The speed of a bridging loan allows you to act fast in Newcastle’s property market, but it’s important to have a clear plan for repaying the loan once your long-term financing or property sale is in place.

Yes, it’s possible to get a bridging loan if you have bad credit.

At Blue Square Capital, whilst we do run credit checks, we will consider your overall business plan rather than just your credit score.

However, it is worth noting that having bad credit may affect the interest rate and loan terms you are offered, so speak to your lender if you have any concerns.

In general though, we care more about the value of the property you’re using as security and your plan for repaying the loan rather than your credit history.

Our bridging loans are offered with repayment terms of 15 months, which means they have to be repaid in full within that time.

At Blue Square Capital, we don’t believe in penalising you for paying back the loan early, so we waive all early exit fees.

Some common ways of repaying your bridging loan include:

• Sale of Property: Once you sells your property, you can use the money to repay the loan in full.

• Refinancing: You may want to refinance through a long-term mortgage to replace the short-term bridging loan.

• Business or Investment Proceeds: If the loan was used for property development or another investment, profits from the completed project can be used to repay the loan.

• Personal Savings: Some borrowers may use their personal savings or liquid assets to pay off the bridging loan if their exit strategy looks like it may be delayed.

Absolutely. Bridging Loans are fantastic tools for auction finance, especially as they can provide the quick funds needed to secure the property bid.

When you win a property at auction, you will need to pay a 10% deposit straight away. You will then have 28 days to pay the remaining 90% to complete the purchase.

Given the fast turnaround for auction buys, bridging loans can be a much more time-effective way to get the funds than a traditional mortgage.

At Blue Square Capital, we have a great track record of working with developers and investors who have successfully bought properties at auction all over Newcastle.

Where do you offer bridging loans in Newcastle?

We offer bridging loans in all Newcastle and the surrounding areas, including:

Are there any additional fees for bridging loans in Newcastle?

Yes, there are a few additional fees that you may have to budget for. These 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)

Do I need to be a homeowner in Newcastle to get a bridging loan?

No, you don’t have to be a homeowner in Newcastle to apply for a bridging loan, but you will need to offer a property as security for the loan. This could be a property you are buying or a commercial property you already own.

Are bridging loans regulated in Newcastle?

Some bridging loans are regulated by the Financial Conduct Authority (FCA), however, Blue Square Capital is an unregulated bridging lender. This means we can offer quicker approval times and more flexible terms.

Do you work with bridging brokers in Newcastle?

Absolutely. We have a huge network of bridging loan brokers that we work with across Newcastle and the wider UK. If you are a bridging loan broker with clients looking for bridging loans, get in touch with our team today.