With Blue Square Capital, you can borrow between £250,000 to £2,000,000 for your bridging loan, though some higher amounts may be available depending on the circumstances.
With unregulated bridging loans, the terms of borrowing are set by the loans company, so if you are looking for a lower amount, it may be that you need to do some research to find the right fit for you.
However, just because a company allows you to borrow up to £2,000,000, doesn’t mean they will accept your loan request. Here, we look at what you need to do to secure a loan.
Understanding Bridging Loans: The Basics
Bridging loans are short-term, quick loans designed to help you ‘bridge’ the gap between buying a new property or funding a project and releasing that capital.
They’re especially useful for property investors who need to act quickly—whether that’s snapping up an auction property, refinancing, or raising capital.
Blue Square Capital offers bridging loans tailored to residential, commercial, and mixed-use assets. A bridging loan can be secured against a number of properties, including:
- Houses
- Bungalows
- Flats
- Depots
- Factories
- Hotels
and more.
Our loans typically range from £250,000 to £2,000,000, with up to 70% loan-to-value (LTV) based on the open market value (OMV) of the property.
If you are interested in enquiring into a loan today, visit Blue Square Capital to find out more.
What Determines How Much You Can Borrow?
The amount you can borrow with Blue Square depends on several factors.
First and foremost is the value of the asset you’re borrowing against. Since we offer up to 70% LTV, the more valuable your property, the larger the loan you can secure. For example, if you have a property valued at £1,000,000, you could potentially borrow up to £700,000.
Alongside the property’s value, we will also look at the equity you have in the asset. The more equity you have, the more you’re likely to borrow. Blue Square Capital allows you to secure loans against multiple properties, which means you can unlock a higher loan if needed.
However before you apply, it’s worth checking if a bridging loan is right for you. See our guide around What To Consider Before Getting A Bridging Loan.
Calculating The Cost Of Your Bridging Loan
Bridging loans typically come with higher interest rates than mortgages due to their quick processing time. Interest is usually charged on a monthly basis rather than annually, especially as many bridging loans can be paid off with a year.
One thing to look out for in a potential lender is their fee structure. Lenders like Blue Square Capital don’t charge exit fees or have strict funding lines, which can save you money in the long run.
There is also usually an arrangement fee, averaging around 2% for sorting the loan. For larger loans, this fee might drop to 1%, so it’s worth discussing with your lender to secure the best rate.
Start by making a list or using a loans calculator to work out the costs, which should help in the long run.
Understanding The Application Process
One of the major advantages of working with a lender like Blue Square Capital is their efficient application process.
Many bridging lenders have complex systems that can take up valuable time when securing a loan. Before starting the process, try and understand exactly what documents you might need. Most of the time, a lender will want to understand the exit strategy to be reassured that it can be paid back.
If you want more information about the process, see our guide around Am I Eligible For A Bridging Loan?
Is A Bridging Loan Right For You?
Bridging loans are a great tool for property investors who need to act quickly and have a clear exit strategy, whether that’s selling a property, refinancing, or securing longer-term financing.
Blue Square Capital’s flexible terms, lack of exit fees and flexible approach make us particularly attractive for those who value speed and efficiency.
In summary, how much you can borrow with a bridging loan from Blue Square Capital depends on the value and equity of your assets, with potential loan amounts ranging from £250,000 to £2,000,000.
Our flexible approach to lending means we are a great partner for those that want to secure quick and efficient funding.
To find out more or apply for a loan visit Blue Square Capital today.
