lloyds bank bridging loans

Who are Lloyds Bank and what do they do?

Lloyds Bank was founded in Birmingham in 1765 and today it offers both retail and commercial banking within England and Wales. It is known as one of the ‘Big Four’ clearing banks and is currently the largest retail bank in Britain with more than 16 million customers.[1]

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Does Lloyds Bank offer bridging loans?

Lloyds Bank does offer specialist lending services and bridging loans are available under this umbrella. Lloyds bridging loans are designed to assist customers in purchasing a new property while still in the process of selling their current home.

As bridging loans fall under specialist lending, it can be problematic to achieve one through a large bank like Lloyds as the company does not outwardly promote this service. This means that many individuals in search of a bridging loan will use alternative lenders for a more efficient and adaptable outcome.

To find out which lender is right for you, compare companies from our bridging loan directory.

What do Lloyds Bank interest rates look like on bridging finance?

The average interest rate you can expect to pay for bridging finance is between 0.4% and 2%. It’s important to compare lenders, though, because even a small increase in the bridging loan interest rate can mean you’re paying back a lot more each month. This is because interest is paid monthly with bridging finance rather than paying an annual percentage rate (APR). So the longer your loan term, the more expensive it’s going to be.

Interest rates are subject to change, so you’ll need to apply for a quote and compare from there to get the latest figures.

What do I need to get a bridging loan with Lloyds Bank?

Bridging loans work in a different manner to other methods of finance as banks are not too concerned with a customer’s credit history due to the customer’s existing property serving as collateral for the loan.

Before Lloyds lends to you, they will need to know your strategy to repay the loan. Lloyds will also need to know:

  • That you at least 18 years of age
  • Proof you are UK resident

Lending is subject to status and application.

How do I apply, and how easy is the process?

Applying for a bridging loan is usually a simple process and you can do so directly through Lloyds 24-hour online and telephone services.

Alternatively, you can apply for a bridging loan with another provider.

Visit our bridging loan directory here and visit our FAQs or drop us a line if you have further questions.

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

The length of application process will vary depending on individual circumstances. If you are simply applying for a bridging loan while awaiting the sale of your current property and have a clear method of repaying it, the process should be a matter of days.

On the other hand, if your situation is more complex, the process could take a few weeks.

The advantages of a bridging loan with Lloyds Bank

As Lloyds is a high street bank with large brand awareness and history in the market, many may feel more comfortable choosing a bridging loan with them.

In addition, customers who already use Lloyds banking services may find it appealing to contain all their finances in one place. Being an existing customer may also allow you to receive special deals and consideration; however, by researching a variety of different lenders you can determine the best possible deal for your situation.

The disadvantages of a bridging loan with Lloyds Bank

By choosing a high street bank like Lloyds without considering alternative methods of securing a bridging loan, you will miss out on guaranteeing the best possible deal you can.

This is why you should always compare providers as the market for bridging loans is competitive, ensuring that there are variety of lenders* to choose from that will suit your individual financial needs.

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What is the Bridging Loan Directory?

We’re an impartial party that solely exists to help you find the best bridging loan lender for you. We’re here to guide all our users through every aspect of their bridging loan application journey. Our content resources section is packed full of guides so you can learn more about everything from interest rates to refurbishment finance.