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The loan application process begins with a telephone conversation with the borrower or their broker. 

The purpose of this call is to establish that the borrower's requirement for a VAT loan meets the Bridging Vat lending criteria namely, the purchase a commercial property, located in the England, Scotland or Wales that will be subject to an option to tax and is being acquired by a special purpose vehicle that is a VAT registered UK limited company.


We also consider opportunities for the borrower to, or risks that HMRC may, complete the purchase without the application of VAT.

We issue a loan illustration once we are satisfied the Bridging Vat loan criteria are met and we have been provided with:

  • details of company completing the purchase.

  • the address of the property being acquired.

  • the purchase price.

  • a breakdown of the intended funding for the purchase.

  • the target completion date.

The charges for a Bridging Vat loan are:

  • a Facility Fee that is a percentage of Gross Loan Advance.

  • a Daily Interest Charge based on a percentage of the Gross Loan Amount.

  • a fixed Legal Fee.

An amount equal to the Fees and 90 days interest is deducted from the Gross Loan Advance to give a Net Advance equal to the amount of VAT due.

The maximum term for a Bridging Vat loan is 90 days.  The loan is automatically repaid once we receive the VAT recovery from HMRC.  The cost to the borrower will vary depending on the time taken to receive the VAT recovery.  The illustration shows the cost to the borrower based on receiving the VAT recovery after 30, 45, 60, 75 and 90 days (our average recovery time is 45 days).

Bridging Vat aim to issue loan Illustrations within 1 hour of the initial telephone conversation.​

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