Bridging Loan Ireland

In Ireland, getting a bridging loan follows a similar process to the UK, but with some local differences. Here’s a concise overview:

1. Eligibility: Bridging loans are available to property owners, investors, or businesses. Lenders will look at your credit history, income, and the property being used as collateral.

2. Loan Amount and Terms: Typically, bridging loans in Ireland offer up to 75-80% of the property’s value. They are short-term, usually lasting between 3 to 12 months.

3. Interest Rates: Bridging loans typically come with higher interest rates compared to standard mortgages. These can vary depending on factors like the loan amount, property type, and the lender, but they tend to be more expensive due to the short-term nature of the loan.

4. Approval Process: While the process is faster than traditional loans (often within days or weeks), you’ll need a clear exit strategy, such as selling the property or securing long-term financing.

5. Costs and Fees: Bridging loans often involve arrangement fees, legal fees, and valuation costs, which can increase the overall expense.

Enness can broker Irish bridging loans of any value and specialise in deals involving prime and high-value real estate. Enness can broker large Irish bridging loans secured against luxury property in Ireland, including finance of €10 million or more.

Lenders will offer you a short-term loan secured against real estate you own in Ireland. Bridging loans are used in a different way to conventional property finance and are almost always used to achieve a specific outcome or solve a problem in the short term. Lenders will want to understand your exit before considering lending, although they are open to how you do this, therefore you must have a solid plan for using and managing the loan. Refinancing, selling your property and liquidity events are common exit plans. 

How much you can borrow will depend on your property's value, plans, financial background, net worth and exit. A standard LTV for an Irish bridging loan stands at around 60 or 65%, although some lenders may offer a little more or sometimes, a little less. Some lenders will also consider securing a loan against multiple assets in Ireland or internationally. This option is ideal for high-net-worth individuals with global property portfolios and can increase the amount you can borrow. The stronger your financial situation and background and the higher your net worth, the more you are likely to be able to borrow.

Loans of €1 million or more are very common, and many lenders are happy to offer large bridging loans secured against Irish property. Enness can also arrange multi-million-eurobridging deals if your property and financial background support this.

Enness is able to structure Irish bridging loans on your behalf if you or your advisers have specific requirements to optimise or streamline borrowing. Enness can negotiate loans structured via entities and various ownership structures in Ireland or abroad. Enness are experts in international and cross-border finance, therefore can broker bridging financesecured against Irish real estate where you can use loan capital in other jurisdictions to buy property or for other projects such as investments or debt consolidation for example.

Whatever your goals and requirements for an Irish bridging loan, Enness will always be working to secure the best bridging loan for your situation. As well as negotiating a bridging loan for you, your broker will collaborate with all parties involved to complete the deal as quickly and efficiently as possible.

You can use an Irish bridging loan as a way to release equity from real estate you own in Ireland. You do not need to be a full-time resident of Ireland to be able to use bridging finance in this way. Your lender will secure the bridging loan against your property in Ireland, and if you wish, the loan capital can be used for international projects and domestic ventures. You may want to use capital to buy property, invest, purchase assets, consolidate debt or solve short-term cash-flow issues. Lenders will generally be open to how you plan to use the finance, provided you have a detailed and realistic plan and exit strategy.

Many lenders can consider offering Irish bridging loans or equity release secured against Irish property, but where loans will be used in cross-border deals. For example, you may wish to raise equity against a high-value Irish residence but use the loan capital in another jurisdiction – this is a common option for high-net-worth individuals. Many lenders offer loans in different currencies, even when the loan is secured against Irish real estate. Enness can broker loans in pound sterling, US dollars or Swiss francs, as well as other currencies if needed. This can streamline and simplify using loan capital internationally and bypass costly currency conversions.