Bridging Loans

Bridging finance offers the opportunity to access funds at short notice to meet urgent funding requirements when long term facilities cannot be made quickly available to meet a dead-line. We are affiliated with a number of lenders who are experts in this field.

How does a bridging loan work?

Non-status bridging loans offer funds purely against the equity in the property offered as security and generally take no account of the applicants income or previous credit history. However previous credit problems always needs to be declared. The amount that can be raised with bridging finance depends on the equity available, whether the loan is to be a first, second or even third charge loan. The maximum loan to value will vary with market conditions, see our criteria for what may be achievable today.

When should I use a bridging loan?

The simple answer is that short term property backed finance is best utilised where cash needs to be raised quickly as the loan can be used for any purpose. The speed & flexibility of bridging means that wherever there is a need for capital such as private residential, investment or commercial uses, this method of financing is a useful option.

How much does bridging finance cost?

Due to the shorter approval process and short term nature of bridging loans costs are higher than a standard loan. There will be an arrangement fee of between 1%-2%, interest between 1%-2% per month and sometimes even an exit fee. The actual cost will be determined by the level of risk, such as what loan to value is required etc. As a general rule, the higher the loan to value the higher the risk, therefore overall costs will be more. Remember you will also be responsible for any other costs such as the valuation and any legal fees. Due to these higher costs we always recommend you have a known exit route for any loan taken i.e. have a pre-determined, valid method of repaying the loan such as a remortgage or house sale, even if exactly when repayment can take place is not yet known.

How long does it take?

As the fastest method of raising finance this kind of loan arrangement could be completed in 48 hours, sometimes even on the same day. However an ultra high-speed bridging loan depends on much of the background work having already been completed and acceptable to the lender. For instance any property valuation will need to be recent and acceptable, plus your own solicitor needs to be able to work to an accelerated schedule too! A more usual timescale is that the customer allows 7-10 working days from date of application. We recommend you always leave time for anything unexpected that may delay your loan application.

How we can help

As we have a large panel of bridging lenders, as with all our services, we will target your application at the lender who will give the best deal for your circumstances.
 
Why not call us now to enquire about bridge finance and it's suitability for your needs.