Santander's Bridging Loan Options: What You Need To Know

Santander offers bridging loans to both individuals and businesses, allowing customers to buy property before selling their previous one. The main difference between individual and business loans is that business loans are unregulated. Santander also offers home improvement loans to both customers and non-customers, although non-customers cannot apply for loans above £20,000. To apply for a bridging loan, you must submit a clear exit plan, have a UK-registered address, be 18 or over, and provide proof of income.

Santander bridging loans help customers buy property before selling their previous one

Santander offers bridging loans to help customers buy property before selling their previous one. This means that you can secure your dream property without having to wait for your previous one to sell. Both individuals and businesses can apply for a Santander bridging loan, with the main difference being that loans for businesses are unregulated.

Bridging loans from Santander can provide financing for up to 100% of the purchase price of a new residential home, excluding expenses and taxes. The maximum term for the loan is 30 years, and there is a grace period of up to 12 months for repaying the capital, during which the borrower can sell their current home.

Unlike traditional loans, bridging loans are secured against your property, so lenders are not as focused on your credit score or credit history. However, Santander will require you to submit a clear exit plan outlining how you plan to repay the loan. You will also need to meet other requirements, including having a UK-registered address, being 18 or older, and providing proof of income.

Bridging loans differ from traditional loans in that lenders charge monthly interest instead of APR, making them an expensive option for long-term financing. Most lenders charge interest between 0.4% and 2%, but rates can vary, so it is important to compare different lenders to find the best deal.

In addition to bridging loans, Santander offers a range of other loan products, including home improvement loans for customers and non-customers, as well as various mortgage options.

Bridging loans are available for both individuals and businesses

Santander offers bridging loans to both individuals and businesses. These loans are meant to help customers buy property before their previous one sells. The main difference between the two is that if you're buying on behalf of a business, the loan will be unregulated.

Bridging loans are useful when you need to access funds quickly. They are most popular among investors looking to purchase properties. Unlike traditional loans, bridging loans are secured against your property, so lenders are not too focused on your credit score or credit history. Instead, they charge monthly interest, making them an expensive option for the long term.

Santander offers a wide range of loan products to help businesses grow, from overdrafts to small business loans. They also offer home improvement loans to customers and non-customers. However, non-customers cannot apply for loans above £20,000.

To apply for a bridging loan with Santander, you will need to submit a clear exit plan, have a UK-registered address, be aged 18 or over, and provide proof of income. You can apply directly through Santander or compare alternative lenders.

Santander offers home improvement loans to customers and non-customers

Santander offers home improvement loans to both customers and non-customers. These loans are designed to help homeowners in the UK finance home improvement projects such as renovations, extensions, and repairs. The loan can be used for any purpose related to improving your home or property, including energy efficiency upgrades and purchasing furniture or appliances.

To be eligible for a Santander Home Improvement Loan, you must meet specific criteria set by the lender. This includes being aged 18 years or above, having lived in your current address for at least three months prior to applying for the loan (proof of address may be required), and having a good credit history. Additionally, for non-customers, there is a limit on the amount that can be borrowed, which is set at £20,000.

The Santander Home Improvement Loan offers several advantages to customers, including competitive interest rates, quick decisions on applications, and flexible repayment terms. Repayments are made monthly via direct debit, and there are no hidden fees or charges associated with this loan type. The interest rate on these loans varies depending on the amount borrowed and other factors, including credit score. However, rates typically start from 4.46% APR (variable).

If you are looking to improve the energy efficiency of your home, Santander also offers a greener homes cashback incentive. This offer is available to customers with an existing Santander UK mortgage or Santander UK personal current account. To qualify, you must have started your additional loan or personal loan application after February 14, 2025, and the work must be finished by September 30, 2025.

Santander's bridging loans require a clear exit plan and proof of income

Santander offers bridging loans to both individuals and businesses. The main difference between the two is that if you're buying on behalf of a business, your loan will be unregulated. The bank also offers a wide range of other loan products to help businesses grow, from overdrafts to small business loans.

Bridging loans are short-term loans, typically lasting from 1 to 18 months, designed to provide a quick cash injection. They are commonly used when buying a property before selling your current one, or to cover renovation or business expenses. These loans are secured against an asset, usually property or land, which the lender will use to decide how much to lend. This usually amounts to 70-75% of the property's value.

Santander requires borrowers to submit a clear exit plan so they can assess how the loan will be repaid. This could include refinancing with a long-term loan, reselling the property, or another funding source. Lenders will not provide funding until this plan is firmly established.

In addition to an exit plan, Santander will also require proof of income to assess your ability to service the loan. This could include bank statements, tax returns, or other financial records.

Bridging loans differ from traditional loans in terms of interest rates

Santander offers bridging loans to both customers and non-customers. These loans can be used to buy a new property before selling an existing one. The main difference between loans for individuals and businesses is that loans for businesses are unregulated.

The interest rates for bridging loans are higher because they are short-term loans, and borrowers are willing to pay the higher rates for the convenience of faster access to funds. Additionally, lenders of bridging loans are less focused on the borrower's credit score or history because the loan is secured against their property, reducing the risk for the lender.

In contrast, home equity loans, which are another option for borrowers, typically have more favourable interest rates than bridging loans. These loans provide a lump sum that can be repaid over a longer period, up to 20 or 30 years. Similarly, a Home Equity Line of Credit (HELOC) may offer a lower interest rate, but the borrower may be ineligible if their current home is for sale.

Therefore, while bridging loans offer a convenient and fast option for borrowers, the trade-off is higher interest rates compared to traditional loans or other credit facilities.

Frequently asked questions