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London Data Store states that in the London Housing Market Report from May 2020, 42,630 new home EPCs were registered in London in 2019/20, in order to cater to the demand of the growing London population.

London has an ever-increasing demand for housing, according to the World Population Review, they found on the UN World Urbanization Prospects that the population is estimated to currently sit at 9.3million, they also estimate the population to reach 10.23 million by 2030. London has grown in population by around 642, 635, since just 2015.

Due to this rise in housing demand and due to London’s constantly increasing population, the increased demand for finance is inevitable. It is critical that you choose the correct financial option that will have the least amount of negative impact and constrictions on your development project.

Bridging Loan For Property Renovation:

A bridging loan is a form of short-term loan given by lenders and it can get you a large amount of money quickly.

This can be beneficial when there is a shortfall in funding for your project. A bridging loan is a way of getting fast money until either permanent money is sorted, or until the next stage of finance is approved.


Typically, bridging loans have a higher interest rate due to the higher risk that they hold. 

A bridging loan is perfect if you need fast money to refurbish a property that is considered uninhabitable, and also for if you need to settle renovation finance for a quick sale.

This is because a bridging loan raises the capital in days (rather than in weeks like a residential mortgage period), allowing you to purchase the property and fight off your competition by being quick and on the go.

As mentioned, a residential mortgage requires the lender to value the property first, resulting in delays that may lose you the property for being slow.

A Bridging Loan Can Be Used For:

• Auction property purchase

• Commercial property development, 

• Residential property refurbishment and 

• Conversions,

• Self-build development, 

• Land purchase

• Securing renovation finance for a quick sale

• To refurbish a property considered uninhabitable. 

A bridging loan is a safer option than a residential mortgage in this case. This is because a bridging loan takes into consideration the potential value of the property, rather than the purchase price that a residential mortgage considers.

The bridging loan, therefore, does not restrict the rate of property development.

When getting a bridging loan, you need to be clear to the lender how you plan on repaying the loan. Whether you are selling the property or refinancing to repay etc. 

Types Of Bridging Loans Are:

Light-refurbishment bridging loans

Heavy-refurbishment bridging loans

A light-refurbishment bridging loan has a slightly lower interest rate and is designed for smaller development projects. 

Heavy-refurbishment bridging loans are targeted at larger development projects and typically have higher interest rates.

As a loan, it is assumed that different lenders will have slightly different criteria.

Get more information from Property Finance Partners. Call 020 3393 9277

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