bridging loans.co.uk

Bridging Loans FAQs

What is a Bridging Loan

Bridging Loans are normally taken out when you have a short term requirement or you need to find money very quickly. Bridging loans are normally repaid within 12 months as the rate of interest makes it too expensive to borrow for much longer.

However developers & investors have been using bridging loans for years to take advantage of market conditions or under valued assets. Being able to purchase a property quickly offers many advantages such as negotiating the best price and beating others to the deal.

One of the most common uses of Bridging Loans is when investors wish to purchase a property at auction. You normally have 4 weeks to complete on the purchase from the day of the auction. You will have to put down a10% deposit that could be lost if you fail to get the funding in place so it is of paramount importance you go with the right lender.

How much can I borrow?

If you have the security with enough equity you can borrow up to L10m however there is limited choice for the very large loans in the current market. Typically we are seeing the average bridging loan come in under L500,000, with the minimum you can borrow being £30,000.

All bridging loans are secured on either commercial and residential property or land. We will be able to lend higher loan to values on residential properties than on commercial property and land but it is always worth calling us to find what the current maximum is.

As an example if you owned a residential property with a open market value of £400,000 and you had a £200,000 mortgage or 1st charge against it we can arrange a 1st charge bridging loan of around L80,000. This is because 70% Loan to Value is £280,000, to pay off the 1st charge of £200,000 will leave you with £80,000.

It is however possible in some circumstances to get up to 100% of the market value if you use additional properties as security.

How quickly before I get a decision?

You can get a decision within minutes subject to the enquiry being within normal working hours however getting the money in your account can take anywhere between 6 to 7 days and 3 to 4 weeks depending on your situation. Some lenders will advertise money within days and while we don't dispute this is not possible it is very unlikely that you will have your money in this timescale.

The credit crunch has made lenders across the whole market take a much more cautious approach to lending, the main concern for any lender is how are they going to get their money back. They need to be confident that if they lend you money you will be able to 1) refinance the property for more than the bridging loan and 2) sell the property for more than the bridging loan. If a lender can see how they can do 1 or 2 then there should be no reason why they would not lend you short term finance.

We know it is vital that your enquiry is dealt with in a speedy and efficient manner. If your enquiry is urgent and you want to speak to someone out of hours email us and we will try and call you right away.

Residential Bridging Loans

• Maximum 1st Charge Loan — 70% LTV
• Minimum Loan £30,000
• Minimum term — 1 day
• Maximum term — 12 months
• Interest Rate from 1.25% a month

Commercial Bridging Loans

• Maximum 1st Charge Loan — 55% LTV
• Minimum Loan £75,000
• Minimum term — 1 day
• Maximum term — 12 months
• Interest Rate from 1.25% a month

Bridging Loans on Land

• Maximum 1st Charge Loan — 50% LTV*
• Minimum Loan £75,000
• Minimum term — 3 months
• Maximum term — 12 months
• Interest Rate from 1.25% a month

Speak to a professional about Bridging Loans

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About your bridging loan

Is your bridging loan for:      How much would you like to borrow? Residential property Commercial property Building plot     How long do you need the loan for? Please select... 1 month 2 months 3 months 4 months 5 months 6 months 7 months 8 months 9 months 10 months 11 months 12 months or more   When do you need the loan? Please select... Today In The Next Few Days In The Next Few Weeks In The Next Few Months   Proceed to step 2.

Step 2 of 3	About your mortgage
Estimated property value?   Are you a first-time buyer? YesNo   Do you need to self-certify your income? Yes No   Have you: Had a CCJ or Default registered against you? Missed one or more secured loan or mortgage payments in the last 12 months? Been declared bankrupt or had an IVA? Proceed to step 3.

Step 2 of 3	About your mortgage
Estimated property value?   How much would you like to borrow?       Proceed to step 3.

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Your details

First name: Last name:     Phone number: Alternate phone number:   E-mail address: Date of birth:   -- 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 -- January February March April May June July August September October November December ---- 1941 1942 1943 1944 1945 1946 1947 1948 1949 1950 1951 1952 1953 1954 1955 1956 1957 1958 1959 1960 1961 1962 1963 1964 1965 1966 1967 1968 1969 1970 1971 1972 1973 1974 1975 1976 1977 1978 1979 1980 1981 1982 1983 1984 1985 1986 1987 1988 1989   First line of current address: Current postcode:     Based on your loan requirements we have selected the specialist bridging loan adviser called Broker Name to help you with your enquiry. Please click SUBMIT to confirm that you are happy for them to contact you by telephone/e-mail.

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