Should you reside in the United Kingdom or Europe you can apply for a Bridging Loan – if you have previously been denied funding or have ccj’s, arrears, defaults, bad credit or even no credit we will consider your application. Whether you are a individual, sole trader, trading Ltd company or SPV Ltd company as long as you are legally the owner of the property or will be upon completion of the transaction then we will obtain the funding you require.
A Bridging loan is somewhat different to a standard bank loan in the fact it is a property backed facility over a shorter term. The term for a bridging loan is usually no shorter than 3 months and at a maximum length around 24 months. Bridging loans are often used in scenarios where you require funding for a period of time long enough to allow for refinancing onto a longer term product or whilst you are going through the process of selling your property. It can be difficult to choose which Bridging loan is best for you so it is important to speak to a specialist to make sure you select the right lender for your bridging loan requirements. Bridging loans are usually paid in full at the end of the term. Unlike other forms of borrowing, a bridging loan does not require a monthly payment to be made as all interest is rolled into the bridging loan and paid at the end of the term or when you exit the bridging loan.
The application process for a bridging loan is usually much simpler than other types of borrowing and this means applications for bridging finance can complete very quickly usually between 10-14 days this can be extremely attractive when funds are required fast and for time constrained scenarios.
Bridging Finance can be offered against almost any property or land and can be used for several different reasons – its main uses are:
Many clients will constantly be hunting for ‘the best rate’ for their bridging loan this is understandable right? I mean we want the best deal for our bridging finance and want it to be the most cost effective option on the market. It is important to understand that many lenders offer fantastic rates but behind that there will be arrangement fees, exit fees and various other little hidden fees. This is why it is important to look at the total cost of the facility, not just the monthly interest rate for your bridging loan. It is important to view a full breakdown of costs for the bridging loan before you decide to proceed; this makes it much easier to establish who is offering the best deal, not just the best interest rate.
the most important part to any bridging loan, how are you going to repay the loan? The main danger with a bridging loan is that you are unable to repay the loan at the end of the term. Always consider how the loan will be repaid at the very start and make sure your proposed exit strategy is viable. If your plan is to sell your property make sure the term of the bridging loan is long enough to allow for you to find a buyer and complete the sale. Being forced to find a quick buyer could result in your property being sold for significantly less than you would like. If you’re planning to refinance your bridging loan onto a longer term property loan facility you should try to prepare for this by checking if your application is likely to be accepted. If it is possible to do so aim to get a decision in principle from your chosen lender before completing the bridging loan.
The difference in cost between bridging loan providers can be quite significant. Some lenders can only be accessed through a limited amount of brokers – this means you might not be able to access the best rates and deals within the market. Get in touch with us now so we can assist you in the best way from the start and ensure your bridging finance requirements are delivered without delays.