Cheval Property finance approve bridging loans
Established in 1995 the company concentrates upon bridging loans or short term finance but also offers buildings and contents insurance products in the specialist landlord and commercial business sector. The Cheval Group includes Cheval Bridging Finance Ltd, Cheval Commercial Finance Ltd and Cheval Finance Ltd, their pedigree is very high, all are regulated by the Financial Services Authority (FSA) and they also hold a licence to enter into consumer credit agreements.
Cheval was the first provider of bridging finance to become a member of the Council of Mortgage Lenders (CML) and was a founding member of the association of Short Term Lenders.
Cheval have won two awards so far this year, most recently the 2010 Bridging Lender of the Year at the Bridging and Commercial Award – for the second year running. It was also chosen for Best Service at the Moneyfacts Awards 2010.
Cheval have a reputation for providing fast, flexible and reliable services. Following the announcement that they had again won the Bridging Lender of the Year Award, brokers came forward to praise and describe their experience of using the company. Stories of super fast approvals and speedy release of funds, as well as a flexible approach towards applications that may have been turned down by other lenders have all emerged.
Brokers John Charcol believe that Cheval offer an ‘easy and approachable nature’ that includes telephone contact with members of staff at all levels who respond to queries efficiently and quickly.
Interest rates from Cheval compare very well with other short term loan providers remaining competitive in a growing market. A spokesperson from Lifetime Mortgages and Finance said the Group offers “good levels of flexibility in their lending approach and competitive interest rates offered. They stand at the forefront of their profession.”
The group has worked hard to build good relationships with brokers and take time to explain the products that it provides. This summer they have been holding roadshows across the country to explain best practice and appropriate use of both residential and commercial bridging loans. These kinds of products are complicated and have huge implications for anyone who is considering an application.
The roadshows have been very well received and most brokers have admitted that prior to attending the presentations they had very limited knowledge of the circumstances where bridging loans should be used or when other products should be recommended.
The biggest client group for bridging finance products are investors and residential buyers who are buying at auction. In these situations the buyer needs to complete the deal within a very short period of time and it is often impossible to arrange a mortgage from a traditional lender quickly. The need for surveys and valuations delay the mortgage application process and could be the difference between losing or closing the deal.
Home buyers who are selling their existing home and need to complete a purchase on new property before their own sale has gone through may also take advantage of a bridging loan to ensure that they do not lose their ideal new home. It is always recommended that customers take independent advice before taking out these high cost products and a well informed mortgage broker will be able to explain the full implications as well as recommend an appropriate loan.
New products that have been launched take into account the period often now required by traditional lenders that the owner should have been in possession of the property for a minimum period of six months. Bridging loan customers can now arrange a loan that is geared toward a six month plus agreement period with slightly lower interest rates than would traditionally have been charged by bridging finance companies. Cheval has a number of products suitable for a variety of clients and circumstances, ask your broker to find the right deal for you.