It’s been a hot two years for property, with prices rising along with rents and yields which has then meant that more people are looking to get into property development and the industry as a whole.

Whether it’s a commercial or a residential development, many are now seeing that there’s money to be made in this market and are jumping on board.

It’s also true that the outlook for the UK property market as a whole is looking very encouraging over the next few years so it would also be fair to say that things are looking fairly future proof in that respect.

House prices rose be a record amount across 2020 and this is driving huge demand for development finance across the UK with many now getting into developing property for the first time. Not everybody is looking to take a bridging loan and so we thought we’d take a look at some of the alternatives to bridging loans.

Attitudes towards housing have changed massively since 2020 across the UK and that now means that quality housing is in huge demand all across the country and developers are now working hard to bridge that gap.

This means that more people than ever are looking for property finance, however, that comes in many forms and many aren’t sure quite where to start. As a broker and intermediary we specialise in providing this guidence. Some of our clients assume that a bridging loan or bridging loans are the only avenue available to them when they’re looking to start a project but that isn’t the case and there are lots of different types of loans you can access as well as a mortgage or mortgages.

What other options do I have instead of a bridging loan?

So, with that in mind then, what types of loan can we help you with? And what are the other alternatives?

Residential Property Mortgages

If you’re looking to buy or develop a residential property, then there’s the option to take out a mortgage on it first and foremost. If the property is in a good state of repair and you’re looking to live in it or potentially rent it out, then there are a range of options for you. Due to the market being healthy at the moment you don’t necessarily need a huge deposit to get approved for these types of loans, and some will take alternative types of security.

Commercial Property Mortgage

Alternatively, if you’re looking to acquire a commercial property then you could seek to agree a commercial mortgage. These would apply if the type of property you’re looking to buy won’t have you or your family living in it, if you’re buying through a business, if you’re looking to use it for commercial purposes or you’re looking to convert it from commercial to residential.

Development Finance

Rather than just a standard bridging loan or bridging loans, you could look at more specialist types of development finance such as senior debt and mezzanine finance. These are complex finance arrangements but can be right your business if you’re not wanting to look at bridging finance. If you wanted to look at these options it’s worth speaking to a broker for further tips.

Secured Loans

Some lenders will allow you to use other assets as security when you’re looking to agree loans. Examples could be your house, as a second charge, or a valuable car or even a boat or other valuable assets that you have. This usually means having the asset valued but as an alternative to bridging finance it can be a good option.

Savings or Family

Alternatively, you could look to dip into your savings if you have some. If it’s a project that you’re confident in and think that it will work then it could be worth backing yourself with savings as an alternative to bridging finance. Even if you’re able to supply a much larger deposit this could help in securing better terms on loans, and certainly if you’re confident in your project you could also approach family members to see if they’re able to help.

Bridging loan calculator

To help you decide whether you think bridging loans are suitable for you we’ve provided you with our easy to use calculator below. Simply fill out the blank boxes with what you think you’ll need and it will show you what your repayments on these loans could look like, and you’re then able to see if this would be a viable alternative to, for example, a mortgage.

Can I get a bridge loan to downsize?

Absolutely, and many of our clients use bridging loans for this purpose. As an example, many clients will use bridging loans to avoid having to wait for a property chain to complete before moving. Once a mortgage is agreed and secured on another property many of our clients then use bridging loans to cover any funding they may need in the meantime rather than, say, dipping into savings. But, of course, bridging loans have many different applications and it’s worth seeking the guidance of a broker.

Free Bridging loan recommendations

Our advisors and brokers are experienced with years in the industry, having financed millions of pounds worth of bridging loans. That means that when it comes to providing recommendations they’re the best in the business and they have knowledge of all sorts of property finance options, whether that’s a mortgage or commercial development.

Their recommendations is completely free and they’re always happy to help with anything you may need. Sometimes property development finance can be complicated and they’re here to provide you with some clarity.

Are bridging loans a good idea?

That very much depends on your circumstances and how much capital you have, which is why we provide free suggestions.

Having said that, broadly speaking, bridging loans tend to be a very good option for thousands of our clients who are looking for short term lending and something to cover a short term situation. Bridging loans often have lower interest, better terms and are more flexible than other types of property development finance.

Are Bridging loans easy to get?

In terms of property development finance and more broadly speaking they tend to be much more flexible and easier to agree than more traditional types of development finance. Our panel of lenders tend to take each case on its own individual merits and value your track record much more than say, for example, your personal credit rating.

Other types of traditional development finance can be quite complicated, laborious and stressful to agree, certainly if a client only has a limited amount of time and things to consider such as stamp duty. Bridging loans, by comparison, tend to offer a much quicker way to get hold of larger sums of money in a much shorter period of time.

However, it’s worth speaking to one of our brokers first and foremost to get a better idea of the implications of bridging loans.

Speak to our advisors today

Our brokers have a real wealth of experience and expertise and this means that they’re able to provide the best information in the industry to our clients who are considering a bridging loan or other types of finance.

They also work with a huge panel of lenders meaning that there’s a real depth of choice for our clients and it also means we can shop all across the market for you and ensure you’re getting the best rates available.

Because we’ve been working with many of these lenders for a number of years it also means they have a great deal of confidence in the fact that we’ll only submit applications to them that they know they can approve. That’s why we provide free advice to our clients before submitting any sort of application and this, by extension, means that we can get a range of exclusive deals and offers from our panel of lenders.

More than that, though is the fact that having to individually approach each lender and go over their terms and expectations is extremely time consuming and laborious and stressful. We’re able to take away all of that time wasting and stress and present to you a list of offers and terms that you can then decide on, confident in the fact that you’re being offered the best rates and terms on the market.

Over the years, we’ve managed to fund millions of deals and you’re no different, so speak to somebody today and we’ll let you know what we can offer you and how we can help you get the finance and support that you need for your project.


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Shiraz Khan is the author of the content. Shiraz is the managing director and founder of Hank Zarihs Associates. With over 16 years' of experience we are master brokers within the short term financing industry. We specialise in a wide variety of short term loans.