UK High Street Banks & Bridging Loans – A guide
If you’re considering applying for a bridging loan, you might be wondering where you can get one from. Should you look to approach your current bank provider? Or are you best seeking out a specialist bridging loan company instead?
This guide explores which high street banks provide bridging loans and why you might want to consider a specialist lender.
Do UK banks still offer bridging finance?
Many high street banks in the UK still offer bridging loans — however, many don’t outwardly promote that they do. They prefer to provide more traditional finance options, such as residential and commercial mortgages. We recommend approaching your high street bank directly to confirm whether they offer bridging loans.
Also, it’s worth noting that banks can be much more stringent compared to private bridging loan companies, making the whole application process sluggish. On the other hand, specialist bridging finance lenders can offer you a quick and flexible service, as they’ve dealt with almost all kinds of property situations.
Which high street banks offer bridging loans?
We’ve provided a shortlist of some of the biggest high street lenders offering bridging finance. Follow the links below to learn more about each bank.
Bank of Scotland
The Bank of Scotland is a commercial and clearing bank based in Scotland and is the fifth oldest extant bank in the United Kingdom with a history going back to the 17th century.
In 2009 the Bank of Scotland became a subsidiary of the Lloyds Banking Group when HBOS was taken over by Lloyds TSB.
Predominantly reserved for property developers, Barclays’ bridging finance can also be used for personal and business projects, at the typical monthly interest rate for a high street bank, between 0.4 and 2%.
If you are one of the 27 million customers banking with Halifax, you can apply directly to the bank for a bridging loan. You’ll need a UK address, proof of income and be over the age of 18.
Founded in 1865, HSBC has over 40 million customers across 64 countries and territories. If you hold an existing mortgage with them, applying for a bridging loan could be an option.
The UK-based Lloyds Bank offers its customers “specialist lending services”, comprising bridging loans, amongst other products. However, they do not actively promote this service.
Claiming the title of the UK’s most popular commercial bank, supporting everyone from start-ups to multinational companies, Natwest currently supports 19 million of its customers. Some with bridging loans.
Royal Bank of Scotland
The Royal Bank of Scotland is a major bank in Scotland catering to both retail and commercial purposes. The bank holds around 700 branches, and these sites are located in Scotland, England, and Wales.
Spanish giant Santander entered the UK market in 2003 and now boasts 14 million customers. In this time, they have provided £175 billion in UK mortgage loans and over £23 billion in corporate loans, offering bridging loans as well.
TSB is a retail and commercial bank located in the UK. TSB is a subsidiary of Sabadell Group and currently possesses 220 branches across England, Scotland and Wales.
Unlike the other high street banks on our list, Nationwide is a building society, meaning its customers own it. So, as a customer, you can apply to them directly for a bridging loan.
Should I take a bridging loan with a bank, or should I shop around?
You should almost certainly shop around. Due to familiarity, traditional high street lenders may seem the best choice, but they aren’t experts in bridging loans. Instead, they work across various disciplines and products.
We’d recommend speaking to several bridging loan providers to get the advice and guidance necessary before taking on a bridging loan. An expert lender will also allow you to get the best deal possible for your situation.
At BLD, we work closely with many trusted providers of bridging finance, all of which are listed in our bridging loan directory. So please take a look today and speak to some of our experts.