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Fast & Flexible Bridge Finance in Somerset
Secure short-term funding for property purchases, renovations, or auctions in Somerset with bridging loans. Explore competitive rates, eligibility, and expert tips to find the best deal.
Bridging loans explained
Bridging loans are short-term, secured loans designed to “bridge the gap” when you need immediate funds, typically for property-related transactions. In Somerset, these loans are popular for buying a new home before selling an existing one, funding property renovations, or securing auction purchases. They offer speed and flexibility, with funds often available within days.
Unlike traditional mortgages, bridging loans have no minimum term, allowing repayment as soon as your long-term finance or property sale completes. They are secured against property, making them accessible even for those with less-than-perfect credit, provided a clear exit strategy is in place.
Somerset bridging finance uses
Somerset’s diverse property market, from charming countryside homes to urban developments in Taunton and Bath, makes bridging loans an ideal solution for various scenarios:
- Chain break finance: Secure your dream Somerset property without waiting for your current home to sell.
- Property renovation: Fund refurbishments on period cottages or modern flats to increase value before selling or refinancing.
- Auction purchases: Act quickly to secure properties at auction with funds available in as little as 72 hours.
- Development projects: Finance barn conversions or new-builds in Somerset’s rural or urban areas.
- Land acquisition: Purchase land for future investment, leveraging Somerset’s scenic landscapes.
With Somerset’s competitive property market, bridging loans provide the speed needed to seize opportunities, especially for listed buildings or properties in conservation areas like the Mendip Hills or Exmoor National Park.
Bridging loan rates and costs
Bridging loan interest rates in the UK typically range from 0.55% to 2% per month, influenced by the Bank of England’s base rate. For a loan with a 0.55% monthly rate, this equates to an annual equivalent of approximately 6.6%. Rates depend on factors such as:
- Loan-to-value (LTV) ratio: Lower LTVs (up to 75%) often secure better rates.
- Property type: Residential properties in Somerset attract lower rates than commercial or mixed-use properties.
- Credit profile: Strong credit can reduce rates, though bridging loans are less credit-dependent.
- Exit strategy: A clear plan, like property sale or refinancing, improves terms.
Additional costs include:
- Arrangement fee: Typically 2% of the loan amount, sometimes waived for larger loans.
- Valuation fee: Required to assess the property’s open market value.
- No exit fees: Our bridging finance products have no exit fees or early redemption penalties.
Use an online bridging loan calculator to estimate costs based on your loan amount and term. For example, a £100,000 loan at 0.55% over 12 months incurs £6,600 in interest, assuming no early repayment.
Bridging finance eligibility in Somerset
Bridging loans are accessible to a wide range of borrowers in Somerset, including:
- Homeowners needing to break a property chain.
- Property developers funding renovations or new builds.
- Investors purchasing buy-to-let properties or land.
- Businesses requiring quick cash flow solutions.
Key eligibility criteria include:
- Collateral: A property or high-value asset to secure the loan, typically valued at £20,000 or more.
- Exit strategy: A clear plan to repay the loan, such as selling a property or securing a mortgage.
- Income: While proof of income is less critical than with mortgages, some lenders may assess affordability for monthly interest payments.
- Credit history: Poor credit is often acceptable, as lenders prioritise the property’s value.
In Somerset, properties like listed buildings or those in conservation areas may require additional planning considerations, which lenders will factor into the loan terms.
Types of bridging loans available
Bridging loans come in two main forms, both available in Somerset:
- Closed: Have a fixed repayment date, ideal for those with a confirmed property sale. These are cheaper due to lower lender risk.
- Open: Offer flexible repayment without a set date, suited for uncertain sale timelines but carry higher rates.
Loans can also be first-charge (no existing mortgage) or second-charge (behind an existing mortgage), with second-charge loans typically having higher rates due to increased lender risk.
How to apply for Bridging finance
Securing a bridging loan is straightforward with the right broker. Follow these steps:
- Consult a broker: Work with a whole-of-market broker like us to access exclusive rates and lenders.
- Get a quote: Use an online calculator or request a no-obligation quote tailored to your needs.
- Decision in principle (DIP): Receive a DIP within hours, outlining terms and rates.
- Property valuation: A professional valuation assesses the property’s market value.
- Application submission: Submit required documents, including proof of exit strategy.
- Funds release: Funds can be available in as little as 5–15 days, depending on complexity.
In Somerset, local expertise is crucial. Brokers familiar with the area’s property market can navigate challenges like planning restrictions for listed properties or rural developments.
Why work with us
Partnering with a specialist broker ensures access to competitive rates and tailored solutions. When you use our services, you benefit from:
- Market-leading rates starting at 0.55% per month.
- Access to nearly 100 lenders for diverse needs.
- Expert guidance on Somerset’s unique property market.
- Fast approvals and transparent fees.
Whether you’re in Yeovil, Bridgwater, or the Quantock Hills, a local specialist can streamline the process and secure the best terms.
Get started today
Ready to explore bridging loans in Somerset? Contact us today or use our online bridge loan calculator to estimate costs. With rates from 0.55% and funds available in days, you can seize property opportunities without delay.
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