Together Cuts Bridging Loan Rates: What London Landlords Need to Know

Together’s Bridging Loan Rate Reduction: A Practical Update for London Landlords

Together, a significant player in the UK bridging finance market, has trimmed unregulated bridging loan rates by 5 basis points (0.05%) across several products. The new rates start from 0.9% for first charge residential bridging loans, with similar reductions for semi-commercial and commercial bridging loans.

Why This Matters for London Landlords

Bridging loans are popular among landlords for short-term financing needs — such as property refurbishments, quick acquisitions, or bridging gaps between sales and purchases. Lower interest rates directly improve loan affordability, especially at higher loan-to-value (LTV) ratios common in bridging finance.

In London, where property values and transaction costs are high, even small rate reductions can yield meaningful savings on interest payments, enhancing cash flow and project viability.

Who Benefits?

• Single-unit landlords using bridging finance for purchases or refurbishments.
• HMO owners seeking short-term funds to upgrade or convert properties.
• Portfolio landlords managing multiple projects and refinancing options.
• Accidental landlords relying on flexible bridging finance for unexpected property transactions.

Together’s flexible lending criteria—including accommodating expats and non-UK residents—means a broad range of landlords can benefit.

Practical Steps for Landlords

• Review Current Bridging Loans: Assess your existing Together bridging loans to see if refinancing with the new lower rates is feasible and cost-effective.

• Evaluate Financing Strategy: If planning acquisitions or refurbishments requiring bridging finance, consider how reduced rates may improve returns or allow for higher LTV borrowing.

• Understand Terms: As these are unregulated loans, carefully review product terms, fees, and eligibility, especially if you’re an expat or non-UK resident.

• Work with Brokers and Agents: Ensure your mortgage brokers or property agents are aware of these changes to advise on the best financing options.

Action Plan for Immediate Consideration

1. Audit Bridging Finance Arrangements: List current bridging loans, noting interest rates, terms, and remaining durations.
2. Contact Together or Your Broker: Confirm updated rates, refinancing options, and penalty implications.
3. Calculate Potential Savings: Model interest savings based on your loan balances and terms.
4. Consult Your Accountant or Financial Advisor: Ensure refinancing aligns with tax and financial strategies.
5. Inform Tenants or Agents if Needed: Communicate changes affecting payment schedules or project timelines.

Monitoring and Benchmarking

Together’s reduced rates currently start from 0.9% for residential bridging loans. Rates vary by lender and product, so benchmark these against alternatives to secure the best offers.

How Rentals & Sales Can Support You

Our landlord intelligence hub provides portfolio reviews including finance audits and compliance checks. We assist you in evaluating existing bridging loans and exploring refinancing opportunities, working closely with regulated mortgage brokers to ensure you understand all product terms before committing.

Disclaimer: Bridging loans, particularly unregulated ones, carry specific risks and regulatory considerations. This article does not constitute financial advice. Landlords should seek independent financial and legal advice before altering finance arrangements.