Halifax Bridging Loans

Who are Halifax and what do they do?

Founded in 1853, Halifax, a division of the Bank of Scotland, is a trusted high street bank to 27 million customers. Previously a building society (pre-1997), Halifax bank now helps its business and personal customers with various financial services from credit cards and ISAs to investments and mortgages.

Does Halifax offer bridging loans?

Yes, Halifax offers both personal and business customers the opportunity to apply for bridging finance. You can apply directly through Halifax to access this finance, or you can compare alternative lenders to find the best bridging loan deal. You can use your Halifax bridging loan if you’re hoping to purchase a property at auction, or you want to fund a property development or renovation project, or it can help you buy a property before your current property has sold.

If you’re looking to compare bridging loan lenders, check out our directory — it’s packed full of trusted UK lenders. Visit our directory.

What do Halifax’s interest rates look like on bridging finance?

You can expect to pay anywhere from 0.4% to 2% interest on a bridging loan. Unlike other forms of finance, lenders don’t make their money back through an annual percentage rate (APR); instead, interest is charged monthly. So the longer you have the loan, the more expensive it becomes to repay.

If you only require your loan for a short period of time, a Halifax bridging loan could be a good option for you. But if you need the loan for a longer period, it could get pretty pricey, and you might be best exploring other loan funding options. You need to work out whether you can realistically afford to repay this finance.

When comparing lenders, make sure you take into account that even a small increase in their interest rate can add a lot more to your total loan amount.

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What do I need to get a bridging loan with Halifax?

If you’re worried about your credit score, don’t be. Unlike other loan providers, bridging loan lenders aren’t as bothered about your credit score because it’s a secured loan. That means the loan amount is secured against an asset (usually the property you’re selling or land).

When applying for a bridge loan with Halifax, they’ll want to see your exit plan — they need to know how you plan to repay their loan. They’ll also need proof you have a registered UK address, proof of income and remember, you must be over the age of 18 to apply.

You can apply for a bridging loan as a business or individual. But be aware that if you’re buying as a business, the loan is unregulated by the Financial Conduct Authority (FCA).

How do I apply and how easy is the process?

In the majority of cases, applying for a Halifax bridging loan is straightforward. To get started, work out how much you need to lend and for how long, then compare lenders to make sure you find the best deal.

If you’re wondering where to start when comparing lenders, we work with various trusted UK lenders who specialise in bridging loans. You can easily compare lenders here.

How long does the application process take and when do I get the money?

How long the process takes is dependent on your circumstances. If your exit plan is clear and the bank has all the information it needs, the process should go smoothly, and you could have your conditional offer within hours. If the lender needs to ask you more questions or issues arise, your conditional offer could take a few weeks.

If you’re applying through a specialist bridging finance lender, their expertise could help the process move faster as they know exactly what they need from you.

Check out these specialist lenders.

Does Halifax offer any specialist bridging options for things like property, business, etc?

A bridging loan is a good option if you’re looking to bridge the financial gap between selling your old place and buying your next property venture. But, if you’re looking to build a loft extension or renovate the kitchen at your property, you might be better suited to a home improvement loan from Halifax.

You can access up to £35,000 if you’re a Halifax current account holder, or up to £25,000 if you don’t have an account with Halifax.

The advantages of a bridging loan with Halifax

If you’re already a loyal customer of Halifax, you might get more favourable terms if you apply with Halifax. You also might find it convenient to keep all your loan applications and your finances together in the same place.

Many customers choose high street banks for their loan requirements because they’ve built a trustworthy relationship with them. However, securing a bridging loan from a high street lender can be difficult, as they’re no longer a standard product. So it’s worth approaching Halifax first to see what products they can offer you.

The disadvantages of a bridging loan with Halifax

By going straight to one provider and not looking elsewhere, you could miss out on better bridging finance deals. Lenders who specialise in bridging loans can offer customers a quicker and more flexible service than traditional high street lenders.

Before settling with a Halifax bridging loan, it’s important to compare other lenders to make sure the deal you’re getting is a good one.

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What is the Bridging Loan Directory?

We’re here to help customers just like you find out more information about bridging loans from interest rates and refurbishment finance to bridging loan VAT. Our team is here to answer your questions and help you find the best provider for your needs.

Visit our FAQ section or get in touch.