As a subsidiary of the Lloyds Banking Group, Bank of Scotland offers bridging finance on the same limited terms.
Bridging finance is offered only to members of Bank of Scotland’s private banking services.
If you’re in the market for a competitive bridging loan quote, please take advantage of our whole of market access and competitive prices.
Get a Range of Competitive Quotes at No Obligation
- Up to 100% LTV
- Whole of Market Access
- Simple, Fast, Funded
- Niche lenders available for specific areas
- 1st and 2nd charge bridging loans available
- Free advice from our development finance team
- We will never share your data
Benefits of a Bank of Scotland bridging loan
- Quick access to funds – Bridging loans provide fast access to the money needed to secure your new property. This avoids missing out while waiting for an existing property to sell.
- Flexibility – The loans can be tailored to your specific circumstances and timeframes.
- Short term – Bridging loans are designed for the short term, either until an exact date or until the existing property is sold.
- Using property as security – The loan is secured against your existing property, meaning you don’t have to find other assets to use as security.
Features of Bank of Scotland bridging loans
- Available on both an open and closed basis. Open is where you don’t yet have a buyer for your existing home. Closed is where you have already exchanged contracts on the sale.
- Loan terms up to 6 months, or until the existing property is sold if earlier.
- Interest-only payments – you only pay the interest each month, with the full loan repaid at the end.
- Secured against your existing UK property.
- Specialist support from Bank of Scotland’s dedicated bridging loan team.
How do Bank of Scotland bridging loans work?
With a Bank of Scotland bridging loan, the loan is secured against your current property which you intend to sell. This property is used as collateral.
You can access up to the agreed loan amount immediately to put down a deposit or complete the purchase of your new home.
During the term of the loan, you will make monthly interest-only payments, meaning you only pay the interest portion and not the principal balance.
Once your existing property sale completes, you use these proceeds to repay the full bridging loan amount. This could be anytime during the term, but must be repaid in full no later than the end of the agreed loan term.
How to apply for a Bank of Scotland bridging loan?
Contact your Bank of Scotland Relationship Manager to discuss your needs. They can provide details on the application process and requirements, such as:
- Proof of your current income and assets
- Valuation of your current property
- Credit checks
- Legal fees for setting up loan security
If you meet the eligibility criteria, your dedicated manager will be able to process your application and provide an approval decision quickly.
Do You Need a Bank of Scotland Bridging Loan Calculator?
Since the Bank of Scotland loans are only available for members of its private banking, why not let Business Expert get you a range of quotes from the entire alternative lending market.
With the whole bridging loan sector at our fingertips, Business Expert offers a free broker service whereby we use our knowledge and connections to find you the bridging finance that’s right for you.
Use our own bridging finance calculator to see the type of costs and fees a typical loan might entail.
How are Bridging Loans Calculated?
There are a huge number of variables takek into consideration for each bridging quote, and of course some lenders have specific criteria unto themselves based on their own risk assessment.
For most cases, the use of a detailed and well thought through bridging loan calculator such as ours is the most convenient way to understand the mechanics and variables of how this type of funding is structured.
Is a Bridging Loan a Good Idea?
New lenders are often unsure about whether to take the plunge with bridging loans and ask, are they a good idea?’
Over the many years we’ve been doing this, we’re happy to say that, in most cases, the experience is a positive one. The key factor is that the borrower understands the risk and ramifications of bridging and gains an informed view.
As long as there are no surprises, bridging works seamlessly and efficiently as an ideal form of short-term funding.
What is the Interest rate on a Bridging Loan?
Bridging Loans are high interest, as befits their short-term nature.
Interest rates are charged monthly rather than annually (APR), and you should expect a rate from about 0.4 right up to 2% per month.
Because of their monthly calculation, even small percentage increases will have a sizeable impact on your payment. For this reason, it’s worth being especially vigilant in seeking out the best possible deal.
Alternatives to Bridging Finance with Bank of Scotland
While Bank of Scotland can provide bridging loans, there are other lenders you may want to consider as well:
- Shawbrook – Provides bridging loans from £100k up to £15m.
- Precise – Offers bridging finance up to £5m over terms from 1-24 months.
- LendInvest – Bridging from £200k-£5m and terms of 1-12 months.
- Octopus – Bridging loans from £500k-£20m with terms of up to 24 months.
- UTB – Loans from £75k-£15m for terms of 1-18 months.
- MT Finance – Bridging from £100k-£15m with terms up to 12 months.
- Spring Finance – Loans from £100k-£5m over 1-12 months.
- West One – Bridging from £50k-£15m for terms up to 12 months.
- Glenhawk – Bridging loans from £75k-£25m with terms typically 0-12 months.
- ABC – Bridging finance from £50k-£5m over up to 12 months.
- BFS – Loans from £75k-£15m for terms of 1-24 months.
- Affirmative – Bridging from £50k-£15m with terms of 1-18 months.
We can provide an obligation-free comparison of Bank of Scotland loans with any of these alternatives to help you find the right option.