Spring is a specialist lender established in 2011, offering multiple financial products to individuals and SMEs, such as regulated and unregulated bridging loans.
Fully regulated by the FCA, Spring’s speciality is to lend to customers who may not always meet the criteria of high street banks and building societies.
Spring was founded in 2011 and launched into the bridging loan market in 2022.
In this review, I will detail Spring’s loans’ key features, eligibility criteria, application process, rates and reviews to help you decide whether the lender is the right choice for you.
Spring Bridging
Spring offers a range of regulated and unregulated bridging loans from £50,000 to £2,000,000 for both residential and commercial needs.
These short-term financing options are designed to “bridge” a temporary financial gap. They’re typically used in real estate transactions such as purchases and fund refurbishments. You may also use them to raise capital or refinance existing loans.
Key Features Include
- Bridging loans from £50k up to £2m, with up to 70% LTV available
- Rates start from 0.99% per month for terms up to 18 months
- Loans can be used for any legal purpose subject to underwriting
- 1st and 2nd charge available
- No early repayment charge
- Interest can be rolled up or paid monthly
- Complex credit profiles are considered
Spring Finance is new to the bridging loan sector and doesn’t gather a lot of reviews about these products.
However, the lender’s application process is straightforward, and they clearly display any fee and limitation you might encounter, which prevents any bad surprises. My general feeling is favourable.
What are the Eligibility Criteria for a Spring Bridging Loan?
Here’s the criteria to apply for a bridging loan with Spring:
Lender & Loan’s Criteria
| Criteria | Value |
|---|---|
| Minimum Age | 18 |
| Location | England & Wales |
| Security | Loan must be secured against property |
| Max. LTV | 70% for 1st charge Residential Bridging |
| Min. Loan Amount | £50,000 |
| Max. Loan Amount | £2,000,000 |
| Interest Repayment Method | Rolled-up or paid monthly |
| Credit Profile | All types of credit history are considered |
Works Permitted on the Property
| Residential Bridging 1st Charge | Residential Bridging 2nd Charge | Debt Consolidation | Heavy Renovation 1st Charge | Heavy Renovation 2nd Charge | Light Development 1st Charge |
|---|---|---|---|---|---|
| Non-structural works permitted | Non-structural works permitted | No Works Permitted | Extensions up to 33% of current sq ft | Extensions up to 33% of current sq ft | See Full Details |
Application Process for Spring Bridging
While the application process for a bridging loan is quite simple, I regret it is not as quick as some of Spring’s competitors. Where most of them allow you to apply directly online, Spring’s process is a bit more “old-school”.
It starts with filling out an individual or company application form, and send it to Spring’s team. These forms will take you mere minutes to complete, and Spring’s team will then get in touch to discuss the next steps with you.
The front-end process is designed to be quick and straightforward, with minimal information needed upfront.
I contacted Spring’s team to request some information and got an answer in a few hours from one of their friendly specialists.
Spring Bridging Rates & Fees
Here are the Spring bridging loan rates for 2023.
Rates
| Loan Type | < 50% LTV | < 60% LTV | < 65% LTV | < 70% LTV |
|---|---|---|---|---|
| Residential Bridging – 1st | 0.99% | 0.99% | 0.99% | 1.04% |
| Residential Bridging – 2nd | 1.14% | 1.14% | 1.19% | ❌ |
| Debt Consolidation – 1st | 1.14% | 1.19% | 1.19% | ❌ |
| Debt Consolidation – 2nd | 1.19% | 1.24% | ❌ | ❌ |
| Heavy Renovation – 1st | 1.14% | 1.19% | 1.19% | ❌ |
| Heavy Renovation – 2nd | 1.19% | 1.24% | ❌ | ❌ |
| Light Development – 1st | 1.19% | 1.19% | 1.19% | ❌ |
Fees
Taking a bridging loan with Spring comes with a set of fees to be aware of. Here are some of the most important ones you may encounter.
| Fee | Description | Value |
|---|---|---|
| Valuation | Obtaining a valuation report to determine if Spring is able to proceed with the loan | Variable |
| Funds Transfer | Transferring the mortgage advance to you or your solicitor | £30 |
| Monthly Management | A monthly charge for each payment not made in full on the due date | £55 |
| Monthly Default Management | The administration costs involved in liaising with you in relation to repaying the loan | £125 |
| Possession | Spring takes a property in to possession | £495 |
The full list of fees is accessible directly on Spring’s website.
Spring Reviews & Ratings
Overall, Spring receives very positive reviews, earning a score of 4 out of 5, but only based on 30 reviews.
Most customers praise Spring’s acceptance of loans. The lender is renowned for giving access to financing to a wide range of profiles, even with poor credit history. This is rarely the case with high-street lenders and building societies.
The few negative reviews I came across were related to fees, which isn’t worrying in my opinion, as Spring clearly displays any fees involved, which reduces the eventuality of surprises.
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Spring Finance FAQs
What types of bridging loans does Spring Finance offer?
Spring Finance offers a variety of bridging loans including regulated, unregulated, first and second charge loans, with additional options for complex credit scenarios, heavy refurbishment, and light development projects.
Who can avail of Spring Finance’s bridging loans?
Spring Finance initially rolled out its bridging loan offerings to a select group of brokers, but later expanded its services to the wider market, supporting both brokers and customers.
How did Spring Finance enter the bridging loan market?
In 2022, Spring Finance entered the bridging and development finance market, providing loans on a first and second charge basis, both regulated and unregulated.