Need bridge financing? Choose an asset loan over a property loan.

Bridging loans secured against residential or commercial property are a short-term funding option have gained in popularity ith rising demand for investment capital and a shortage of banks willing to lend. However obtaining an asset loan with Unbolted is often the smarter choice.

An Unbolted asset loan offers a similar cost of borrowing but with lower risk, a faster processing time and greater flexibility.

1. Similar cost of borrowing

Interest rates on Unbolted asset loans are similar if not lower than most property bridge loans. The cost of a property bridge loan at 70% loan-to-value and for a term of 6 to 18 months is 1.10% to 1.80% per month, depending on the size of the loan. For loans over £100,000 Unbolted can offer an interest rate of 1.10% to 1.50%. Borrowing against your assets is not the last resort but rather a rational investment choice.

2. Faster processing

Most property bridge loans take up to three weeks of lengthy paperwork and processing before being approved. Unbolted loans are approved in less than 24 hours and money is disbursed as soon as the assets can be secured. If you need to access investment capital for an immediate opportunity, a loan with Unbolted makes it possible.

3. Increased flexibility

You retain full flexibility with an Unbolted loan unlike most property bridge loans where you are liable to pay a penalty if you want to prepay your loan amount. We allow you to prepay your loans without any penalty if your investments mature quickly or if the cashflow position improves faster than you expected.

You also have flexibility with the amount that you need to borrow. Most short-term property bridge lenders will not lend you more than £1 million or less than £50,000. With Unbolted, you can borrow as much as you want or as little as you want. Our loans start at £500 with no upper limit, as long as you have the assets to secure the loan.

4. No risk of losing your home or personal investment

With property bridge loans, you are liable for paying back the loan amount even if your investment fails and your property value decreases. In the unfortunate event that you are unable to pay back the loan, the lender will repossess your property and seek to recover any shortfalls from the sale of the property from you. There is no such risk with most Unbolted loans. If you borrow against a asset you will not be liable for anything more than the asset you have pledged.

Property is the most obvious high value asset that you can secure a loan against but it is not necessarily a sensible choice for a short term loan. All investments carry some amount of risk and a smarter economic option is to pledge the Bentley in the garage or the Banksy on the wall rather than risk your home.