Bridge-to-term: Lending beyond the binary

Running your business means accepting things don’t always fit in neat boxes. Commercial property is no different. There are always quirks: a refurb needed; a gap in income; a deal that makes sense, but not on paper.

The potential is there, but funding is hard to find.

That’s why we launched bridge-to-term last year – for those in-between situations. Properties with strong fundamentals, but asterisks that put off ultra-cautious lenders.

Bridge-to-term comes in two forms:

• Improver – for properties that need work to reach mortgageable standard. Once complete, the loan moves to a term mortgage.
• Stabiliser – for assets that need time to steady income, like securing tenants or smoothing rent.

Both are agreed upfront in one application. From day one, your client has confidence and clarity, with up to two years on a bridging rate and up to five years on term.

It’s simpler, with less paperwork and no need to reapply at exit.

For your clients, it brings certainty. They know what their exit looks like before they start. In some cases, based on valuations, they can even release equity when moving to term.

For brokers, it’s built to work with and for you:

• One application for both loans
• Commission paid in stages – 1.5% at the start and 0.5% on transition

And for both of you, it unlocks deals that might otherwise stall.

Too many good projects get turned away for not being “perfect”, but that’s a lender issue rather than a property issue. A little time and investment turn these properties into brilliant assets.

Bridge-to-term backs experienced operators with strong fundamentals and gives them a clear route forward.

If you’re working on a deal that doesn’t quite fit the usual mould, we’d love to talk it through.