Yes you can have more than one bridging loan at the same time.
It’s very common among property developers and investors who often have multiple projects on the go.
But you need to understand how these loans work and what to consider before taking on more than one loan.
Bridging Loans: The Basics
Bridging loans are short term finance to fill a temporary funding gap.
They’re useful when you need access to funds quickly, usually for property purchases or renovations.
These loans only last from a few months to 3 years.
Speed is one of the main advantages – a standard mortgage can take months to arrange, bridging loans can complete in a couple of weeks, sometimes even faster.
This is perfect for property auctions or preventing a property chain from breaking.
What’s different about bridging loans compared to standard mortgages?
The focus is on two things: the property you’re using as security and your repayment strategy. Your income plays a smaller part in the decision making process (and some lenders don’t ask about it at all!).
While many people associate bridging loans with house purchases, they’re very flexible. You can use them for commercial property, land purchases, paying large tax bills or business opportunities where time is of the essence.
Read more: A Guide to Bridging Loans
Multiple Bridging Loans: What’s Possible?
Having multiple bridging loans is actually quite common.
Each application is assessed individually but lenders will look at your overall position, including existing loans, when making their decision.
Imagine this scenario: you’re already using a bridging loan to renovate a buy to let property when an amazing auction opportunity comes up.
You might be able to get a second bridging loan if:
- The new property has strong value potential
- You have equity in your existing properties
- Your repayment strategy is planned
- You have experience of managing similar projects
As long as each deal looks right you should be fine. Remember that these loans are only for the short term. So you may have three loans for a few months until one gets repaid and then you’re back down to two.
Get access to expert brokers and specialist bridging lenders
Common Situations for Multiple Loans
Property developers often have multiple projects on the go at the same time using different bridging facilities.
For example, renovating a house in Manchester and spotting an amazing auction property in Liverpool. Instead of waiting to finish the first project a new bridging loan could help to secure the auction property.
A lot of property investors will use bridge loans for the initial purchase, it’s quick and simple. Then later they refinance on to a buy to let mortgage or holiday let mortgage. If they’re building their portfolio it’s easily possible to have 2-3 on the go at any one time.
Chain breaking scenarios are another common use. You might need one bridging loan to secure your new purchase and another to renovate a property you’re selling.
Business owners can benefit from multiple bridging loans too. A retail business owner might use one loan to buy new premises and another to manage seasonal stock purchases.
Related reading: What can a bridging loan be used for?
Key Considerations
The role of security becomes even more important when you’re looking at multiple bridging loans.
Each property used as security needs to be assessed individually – its value, condition and marketability all matter. Lenders will take a first charge on the property as security so for subsequent loans you’ll likely need to use additional properties as collateral.
It is possible to take out a second secured loan on the same property, but there needs to be sufficient equity.
You need to think more about your repayment strategy with multiple loans.
Consider how different project completion dates align with loan repayment terms and whether you’re using the same source of funds to repay different loans. You need to have backup plans – if one repayment strategy hits a snag you’ll want alternatives in place.
Benefits and Risks
Multiple bridging loans can create opportunities you’d otherwise miss.
Property investors love this flexibility when good projects come up. You don’t have to miss out on profitable deals because you’re in the middle of another project.
Spreading risk across different projects and locations can work in your favour. If one project is delayed others might finish early and balance out your portfolio.
But managing multiple bridging loans requires skill and attention.
Each loan has its own interest payments, completion dates and repayment terms. The costs add up – every loan has arrangement fees, legal fees and valuation fees. And if one project goes wrong it might impact your ability to manage others.
Something often overlooked: multiple bridging loans can affect your future borrowing options. Some lenders might not offer you additional finance if they think you’ve taken on too much.
How Lenders View Multiple Applications
When you apply for another bridging loan lenders look at the bigger picture. They’ll assess your experience with existing loans, how your current projects are performing and your overall property portfolio.
Your track record counts for a lot.
A history of completed projects will work in your favour especially if you’ve managed multiple developments before. Lenders want to see you understand the complexity and can manage multiple projects at once.
Working With a Specialist Broker
A specialist broker can make a big difference when managing multiple loans.
They know which lenders will suit your situation and can access specialist lenders who don’t lend to the general public.
Beyond just finding lenders, good brokers will help structure your loans efficiently.
They might recommend using different lenders for different loans to maximise your borrowing and get better terms. They’ll manage multiple applications so paperwork flows smoothly and deadlines align.
Other Options to Consider
Sometimes taking out several bridging loans is not the best approach.
Portfolio bridging loans can cover multiple properties under one facility, with less paperwork and potentially lower costs. This works well if you’re buying multiple properties in a short period.
Development finance might be better for larger renovation projects.
It offers staged payments that match your build schedule and can be more cost effective in the long run. Some property professionals combine different types of finance – perhaps a bridging loan for the initial purchase and development finance for the renovation work.
Your experience, project type and circumstances will determine which approach is best. A good broker will help you weigh up the options.
Get Started
Talking to a specialist broker should be your next step.
They’ll review your current situation and recommend lending options. More importantly they’ll help structure your borrowing and guide you through the application process.
Multiple bridging loans can be part of a bigger property plan but they’re not for everyone. What matters is finding an approach that suits your situation and supports your property goals.
Our team works with specialist bridging brokers across the UK. We can help you explore your options and find solutions for you.
Whether you need advice on taking on more bridging loans or want to look at alternatives we’re here to help.
Frequently Asked Questions
There’s no actual limit on the number of bridging loans you can have simultaneously. The main factors are having sufficient security for each loan and demonstrating you can manage multiple commitments effectively.
Your existing bridging loan won’t be directly affected, but lenders will consider your total commitments when assessing a new application. This might influence the terms or rates offered.
Yes. Bridge loans can be set up as first charge, second charge and even third charge.
Yes, you can use different lenders. Sometimes this approach works better as it spreads risk and might give you access to better terms.
Yes, you can mix residential, commercial, and land loans, provided each meets lender criteria and has solid security.
Read more: What Properties Can A Bridging Loan Be Secured Against?
Yes, many investors use limited companies and SPVs for borrowing, which can offer tax advantages and help to protect personal assets.
Yes this is fine. Bridging loans are available to a wide variety of people and you do not need to be a homeowner or have a mortgage to qualify.
Read more: Can You Get a Bridging Loan Without an Existing Mortgage?
Yes, you will normally need a solicitor to review the loan contract and also complete the necessary conveyancing duties and charge registration.
Read more: Do I Need a Solicitor for a Bridging Loan?
