Small Bridging Loans Increasingly Popular Choice
Bridgingloans.co.uk have again surpassed forecasted targets in October and November 2014 mainly due to the amount of small bridging loan completions during the months.
The firm uses the term “small” to describe loans between £10,000 and £50,000. This size of bridging finance is less popular with other bridge lenders and brokers who tend to shy away in favour of larger loans. In fact, the lowest net value bridging loan is usually £40,000 and many lenders require a much higher minimum net loan.
The average loan size of the small bridging loans arranged by bridgingloans.co.uk for the stated period was just under £18,000 and the average completion time was 8 working days from initial discussions to funding. The company does all of the legal work on these type of loans internally so a twofold saving, no additional solicitors costs for the client and just as importantly this has vastly improved the completion time way beyond that which most other companies offering the same product could ever achieve. On several of the completed loans, we even managed to add a second charge to the property without needing to wait for permission from the first charge lender to be able to do so. This once more was a valuable time saving tool for all of our clients.
Small bridging loans are available as a first charge on unregulated property or land such as Buy to Let houses, commercial units or land with or without planning permission. They are also available as second charges on the same types of security and additionally on personal residential properties where the requirement for the money is mainly for business purposes or where each applicant is classified as high net worth and earning over £150,000 per annum each.
Applications are acceptable whether the client has credit issues or not and also if the client has or does not have income proof. The underwriting is quick, efficient and kept to an absolute minimum so that all cases are funded within the shortest possible time frame and with the least possible fuss. Small bridging loans are available in England, Scotland and Wales. As yet the only coverage we have in Northern Ireland is for larger loans starting from £50,000 but watch this space.