Speed is absolutely crucial in all types of Bridging Loans. Bridging Loans and Finance available from £26,000 to £5 million. Funds can often be released between 48 and 72 hours.
Highly specialised management team have been specifically recruited from both the property and finance industries.
Bridging Finance is usually required because a property transaction has to be completed quickly before cash is available from other sources such as property sale or from a conventional mortgage loan.
Bridging Finance can be a very effective means of short term finance to enable a beneficial transaction to complete which would otherwise be lost but as they are more expensive than standard mortgage loans Bridging Finance should only be used when they can be repaid or refinanced within relatively short timescales.
A Residential Bridging Loan or a Commercial Bridging Loan?
A Residential Bridging Loan will apply to borrowers who are buying a residential property for their own occupation or where the Bridging Loan is being partially or wholly secured on an own occupied residential property.
A Commercial Bridging Loan will apply to borrowers where the loan is required for a property investment, such as Buy-to-Let Bridging Loan or for a property developer Bridging Loan or in conjunction with the purchase of commercial premises (e.g. offices and other business premises)
How is a Bridging Loan secured?
The security required for a bridging loan can be tailored to reflect the available properties over which a charge can be made in a given transaction. Typically the bridging loan will be secured by a charge on the new property being bought and an additional charge for any shortfall on the purchase price will apply to a second property (eg a property being sold).
However it may be that a single charge on an existing property is all that is required to fund a new property acquisition. Each lender will have their own lending criteria but it is usually possible to set up bridging finance for advances up to 80% of the current valuation of the combined properties less any existing mortgages on those properties.
In some exceptional circumstances it may be possible to obtain bridging finance on even higher “loan to vale” multiples (e.g. up to 90%)
Can a Bridging Loan be arranged for me?
Yes if the amount you want to borrow is adequately secured on the properties that you have available as security.
This will obviously depend on exactly on the amount you need to borrow. The best way is to requested a quote or more information.
Please click the ‘get a quote’ icon below or click here.