Bridging Loans
Bridging Loans. Fast and Simple.
What is it?
A bridging loan is a short-term mortgage, which is generally used in three scenarios.
Scenario One
To bridge the gap where the timings of a property sale and related purchase are not the same.
Scenario Two
Where you need to complete a property purchase very quickly.
Scenario Three
Where the property you are buying is not eligible for a traditional mortgage.
We get it.
We know that SPEED really is important when it comes to getting a loan, that’s why we work with lenders who know this too.
How long does it take?
We’ve seen lenders give a decision within 24 hours and pay out within a few days, typically a bridging loan may take between 7-15 working days. It all depends on how fast you’re able to gather the documents, the complexity of the loan and if the lender requests any further information.
Borrowing
Typically, the maximum amount you can borrow through a bridging loan is 75% LTV, the true amount will be decided by how much equity you have in the asset(s).
How does it work?
The bridging loan is secured against one or a number of assets you are financing.
You repay the loan when the assets are sold or refinanced, such as through a regular mortgage application, which we are also able to assist with.
Types of Loans
See the different types of loans that are available.
Open Bridging Loan
Open bridging loans don’t have fixed repayment dates but are usually required to be paid off within one year.
Closed bridging loan
Closed bridging loans have fixed repayment dates. Normally used if you are waiting for your asset to sell.
Who are they for?
Bridging Loans are available for:
- Individuals
- Businesses
- Professional Landlords
- Property Investors and Developers
Benefits
See below the benefits of a bridging loan
- Raise Finance Quickly
- Refurbish a Property
- Finish a Development
- Buying at Auction
- Purchasing A Property That Would Not Secure a Standard Mortgage
- Bridge A Shortfall of Funding Between Buying and Selling Property
- Raise A Deposit for Purchasing Property
Fees
Click to see all the details regarding the fee structures in obtaining a bridging loan!
- Arrangement fee – A lender will typically charge around 2% to provide the facility, this is usually rolled into the loan
- Exit fees – When the loan ends or is repaid early, you’ll usually pay one month’s interest as an exit fee
- Surveyor’s fees – You’ll usually have to pay a company to survey the property
- Fish4Mortgage – Our fees are subject to your requirements, but are competitive and will be discussed and agreed with you before any work is undertaken
Lending Criteria
The following will be looked at by any lender –
- Credit Report
- Asset Value
- Exit Strategy or Investment Plan
Main Benefits
The main benefits of a bridging loan are:
- Access Capital Quickly
- Flexible Lending Policies
- Simple Loan Structure
Think.
Make sure you have a clear exit strategy, to ensure the loan can be repaid (either via sale or remortgage) to avoid paying penalties and possibly losing the property to repossession.
Alternatives
A secured loan or remortgage may be a better option, this all depends on your individual circumstances.
How do I apply?
See how to apply, there's only 3 easy steps!
Book Appointment
Book Online or In person Meeting
We offer online, phone or in-person appointments. Book an online appointment, email us or call us and let's start the process together!
We start searching
Meet your friendly advisor
After learning a bit about you, our advisors will begin searching the ENTIRE market to find you the best deal
Discuss your options
Receive a TLC Service
Once we've found a few options for you, we'll contact you and if you're happy we can start the full application. Your advisor will explain everything to you.
