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Borrowing amounts, fees, interest and total to repay is intended to be a guide based on the amount entered. A bridge finance specialist will fully assess your requirements and provide an illustration.
Bridging loan amount £200,000 (including £4,035 lender and £1,190 broker fees), 0 monthly payments with a monthly interest rate of 0.68% rolled up over 12 months giving a total amount payable of £224,251 at an APRC of 10.2%. The contract will be secured against the property.
Gone are the days of a ‘computer says no’ process when it comes to lending.
Bridging loans are used to ‘bridge’ the gap until the main finance is available, this could be a traditional mortgage, or the property is sold, following say a renovation.
For example, you might be selling your main home and buying a new one, but then the buyer of your property withdraws, and you do not want to lose your dream home.
A bridging loan could be the solution, as you can raise the funds across both properties, to secure the purchase of your new home.
Once your current property is sold you repay some or all of the bridging finance from the proceeds of sale and then by using a traditional mortgage on the new property to repay any remaining balance if required. This is often referred to as ‘saving a chain break’. You are then in the home you wanted to be, with a traditional mortgage if you needed it.
Other uses are auction purchases, where traditionally property investors are looking for below market value properties or properties with a potential to sell for a profit once a refurbishment has been completed, often called ‘Buy to Sell mortgages’. Some may even be looking for a property to purchase to keep as a residential home.
A bridge can also help with ‘un-mortgageable’ properties (Structural issues, refurbishment, reconfiguration or change of use). These are unlikely to qualify for a traditional mortgage, a bridge allows you to buy the property, renovate it to a standard acceptable for a traditional mortgage, you may plan to live in it, rent it out or sell it.
Read more about here bridging loans
✓ 1 – 24 Month term (longer on buy to let)
✓ £100,000 to no maximum loan amounts
✓ Rates from 0.33%
✓ 100% LTV available with additional security (i.e. 2 properties)
✓ 1st, 2nd and 3rd Charges
✓ No exit fee options, no product tie ins
✓ Previous missed payments, defaults and CCJs taken
Speak to one of our experts on 0800 316 2224 or click the button to complete the enquiry form