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What is a Bridging Loan in Manchester?

In Manchester, a bridging loan serves as a short-term financial solution, usually extending up to 12 or 24 months. Its primary purpose is to “bridge a gap” between various scenarios, such as property sales, refurbishments, or securing a mortgage.

These loans become particularly useful when there’s a pressing need for funds, whether it’s for a swift property purchase, to refinance, or to start a new property investment venture.

Despite typically carrying higher fees and interest rates compared to conventional mortgages, bridging loans offer the advantage of being swiftly arranged and finalised, often within a few weeks.

Bridging loans cater to a diverse range of individuals and entities in Manchester:

Bridging Loan Examples

Here are various scenarios to show the practical uses of bridging loans:

Given the diverse and often intricate nature of these circumstances, individuals seeking bridging loans in Manchester may benefit from personalised mortgage advice.

This advice helps you to navigate through complexities and identify the most financially savvy solutions tailored to their specific needs.


Other options to consider instead of a bridging loan in Manchester are secured loans or traditional mortgages and remortgages, depending on your property plans and the timeline you have for arranging financing.

Seeking impartial mortgage advice in Manchester is key when contemplating a bridging loan application, as there might be alternative products better suited to your circumstances.

Exit Strategy

Having a clear exit strategy from the outset is crucial when dealing with bridging loans. These short-term financial solutions necessitate a long-term plan to ensure a smooth repayment process.

Your strategy for repaying the bridging finance will form part of the application procedure, alongside details of your assets, income, credit score, and affordability.

Here are some examples of bridging loan exit strategies:

How Does a Bridging Loan in Manchester Work?

In Manchester, a bridging loan serves to address short-term financing needs, whether concerning a residential or investment property.

Additionally, bridging loans in Manchester can be utilised even when there is an existing mortgage on the property, provided there is sufficient equity available.

While the specifics of the bridging loan application process may differ among lenders, it typically comprises three key stages, tailored to your individual circumstances and objectives. These stages commonly include:

1. Decision in Principle

A mortgage broker in Manchester will carefully assess your unique circumstances and recommend the most suitable type of bridging finance in Manchester during a free consultation, without any obligation on your part. The ideal loan option for you will be determined by various factors, including:

Following this consultation, a decision in principle will be provided, pending valuation, surveys, and underwriting processes.

2. Application Process 

Once you’ve agreed with the recommendation and are prepared to proceed, your broker will submit a comprehensive application to the lender.

At this stage, the legal procedures will kick in, and associated fees will come into play. Your mortgage broker will provide a breakdown of all fees beforehand, ensuring you understand the process and when payments are due.

A crucial step involves a valuation of the property to confirm its value aligns with your expectations and meets the lender’s criteria regarding type and construction.

During the application process, you’ll need to provide various documents, including:

An underwriting team will meticulously review your application before making a decision.

Working with an experienced bridging loan broker enhances your chances of approval, as they possess extensive knowledge of lending criteria and maintain strong relationships with lenders.

Furthermore, if you haven’t already engaged a lawyer, your broker can recommend one to handle the legal aspects of the process.

3. Completion

If your lender approves your application and you meet their underwriting criteria, along with a satisfactory valuation and legal process, you’ll receive a formal offer of terms.

Upon receiving and signing the offer of terms by both parties, the funds will swiftly be transferred to your nominated bank account.

Typically, the entire process from initial enquiry to completion takes around 2 to 3 weeks. However, when time is of the essence, this timeframe can be expedited.

If you anticipate a future remortgage in Manchester to repay the bridging loan post-refurbishment, your broker can also assist with this if needed.

How Much Does a Bridging Loan Cost in Manchester?

Bridging loans in Manchester may come with higher costs compared to traditional mortgages and secured loans, yet they can offer a cost-effective solution tailored to the right circumstances.

We always advocate for incorporating the expenses of a bridging loan in Manchester into the overall budget for refurbishments, purchases, or capital raises to accurately gauge the return on investment.

The costs associated with a bridging loan in Manchester typically consist of six components:

Arrangement/Facility Fees

Arrangement fees vary depending on the loan amount, typically ranging from 1-2% for loans up to £500,000. These fees are usually included in the loan amount and decrease as the borrowed sum increases.

Valuation Fees

Your bridging loan lender will require an independent valuation of the property to ensure adequate security in case of repossession. This valuation fee, usually a few hundred pounds, is typically paid upfront.

Legal fees for bridging loans in Manchester are generally higher than those for traditional mortgages or secured loans. Additionally, you may need to cover the lender’s legal fees.

Choosing a local solicitor is crucial, as some lenders require face-to-face paperwork review. Our service includes assistance in finding a local solicitor experienced in handling bridging loans, if needed.

Broker Fees

Engaging a broker with expertise in bridging product criteria enhances your chances of approval. It’s essential to work with an independent mortgage broker who can access bridging loans and alternative lending solutions.

This ensures you have the best solution for your needs. Your bridging loan broker in Manchester will also help with refinance or remortgage options when necessary.


With a bridging loan in Manchester, you’ll typically make monthly interest payments to the lender, with rates generally higher than those for traditional mortgages due to the short-term nature of the lending.

Some customers choose to defer monthly payments, allowing interest to compound and be paid as a lump sum upon loan repayment. Interest rates are influenced by factors such as available equity, existing mortgages, and credit scores.

Exit Fees

Some bridging loan lenders may impose an exit fee upon loan repayment. Our bridging loan mortgage advisors in Manchester ensures you understand all applicable fees and their timing, providing clarity on the true cost of finance before you apply.

Without experienced mortgage advice in Manchester, costs and interest can quickly accumulate, affecting your investment. Relying on a trusted broker saves both time and money. & Manchestermoneyman are trading styles of UK Moneyman Limited, which is authorised and regulated by the Financial Conduct Authority.

UK Moneyman Limited is Registered in England, No. 6789312 | Registered Address: 10 Consort Court, Manchester, HU9 1PU.

Authorised and Regulated by the Financial Conduct Authority.

We are entered on the Financial Services Register No. 627742 at

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