Residential Bridging Loans

Residential bridge loans from Charterbank are available to help you secure a new residential property investment quickly.

Whether you seek finance to secure a new property or want to refurbish an existing property, Charterbank can provide a non-status residential loan quickly. We tailor lending to fit your finances and timescales, even providing loans to those with adverse credit.

Fast property finance • Immediate decisions  • No monthly interest payments • No upfront fees • No exit fees

Need finance? Get a quick quote.

What is a residential bridging loan?

A residential bridging loan is a type of short-term financing used to help a borrower purchase a new residential investment property before they have sold their existing one. Many Charterbank Capital clients use it as a temporary solution to provide funds for a deposit on the new property, or to cover the cost of purchasing the new property before the sale of the existing project is completed and sold or re-financed.

Broadly speaking, the loan is secured against the borrower’s existing property, and the lender will typically provide the borrower with the funds needed to purchase the new property. The loan is then repaid when the borrower sells their old property and uses the proceeds to pay off the residential bridging loan.

Helping clients secure funds

to complete their property goal

How can residential bridging finance be used?

Residential bridging loans can be useful for those who need to move quickly to secure a new property investment purchase, or who have found a non-mortgagable or “cash buyer only” property to buy. Below, we highlight residential bridge loan common uses in detail:

Buying at auction

Bridging finance can be useful for those looking to purchase a property at auction. Auctions often require the successful bidder to complete within 7 – 28 days and bridging finance can provide the funds needed to do so.

Is a residential bridge loan for you?

Charterbank offers non-status bridging finance for all its bridging finance options, where the decision making and underwriting process is solely based on the asset. The borrower’s financial circumstances do not play a decisive role in loan approval. As a result, Charterbank can offer residential bridging loans to a broader range of customers than traditional lenders.

You can contact us for an information discussion about your residential bridging loan requirements or apply online.

Residential bridge loan FAQs

How long is a residential bridging loan term?

Typically, short term bridge loan terms span a period of 3-12 months. This is different to every borrower, and we can advise on the best term for you.

How quickly can I get a residential bridging loan?

At Charterbank, we understand that people like to buy property quickly and start refurbishment work at the earliest opportunity. A Charterbank fast bridging loan can be secured in as little as 7 days.

Can I get a residential bridging loan if I have a bad credit rating?

Yes. Unlike other forms of finance where your status is checked, bridging finance can be offered to applicants that have low or poor credit ratings. As the loan is asset backed, your credit score does not impact the decision.

Are there exit fees on residential bridging loans?

No. When you secure a residential bridging loan through Charterbank, there are no exit fees and no upfront ‘commitment fees’.

Can I use a residential bridging loan to improve my investment property?

Yes. Residential bridging loans are used to either fund the purchase of a new investment property or to help renovate your current property, should it be suitable to use as security for the loan. Commercial bridge loans are also available.

What are the monthly interest payments on a residential bridging loan?

There are no monthly interest payments on a residential bridging loan with Charterbank. Interest payments are ‘rolled-up’ being added to the loan account each month as they occur, instead of being paid out by the Borrower.

Can a bridging loan be used to buy a property at auction?

Yes. Often a property investor or developer will use a bridging loan to enable them to compete against ‘cash buyers’ when they are trying to secure a property. With bridging loans being used as security against your own property, they can be used to purchase properties in any condition or sold via any means.