Bridging finance is secured via a legal charge on freehold and long leasehold property on either a first or second charge basis. Loans can also be secured on land, development sites or other personal assets such as Jewellery, Executive Cars and Works of Art etc. A first legal charge would be taken where no other borrowing is secured on the property or asset offered as security and a second charge taken where an existing lender is in place.
Timing is everything and if you need to quickly secure short-term bridging finance then we can help you for both business and residential purposes. We are the UK’s Bridging Finance specialists lending both our own and partner funds and we will provide you with a fast and responsive service to any short-term financial need. We will customise a solution to your exact requirements and you will be surprised just how straightforward, and fast the loan set up process can call us today on 01293972071 or submit an enquiry.
Open and Closed Bridging Finance:
An ‘open’ bridging loan is a loan where the exit or repayment method is known but not yet fully formalised (ie. the sale of a property which is currently being marketed). A ‘closed’ bridging loan is a loan where the exit or repayment method is fully finalised (ie. the sale of a property where an exchange of contracts has taken place).
What Costs are Involved in setting up a Bridging Finance Loan :
In most cases, it will be necessary to pay for an independent valuation of the asset(s) being offered as security. Costs for the report do vary dependent on the type of security but as a guide, you should budget £1.50 to £2 per £1,000 of value.
The borrower will also be required to pay the lenders legal fees associated with setting up the loan and again these vary depending on the type and value of the security and the number of property/asset involved, please budget circa £500
Set Up Fees and Interest Rates:
Set up fees will generally be circa 1% to 2% of the loan amount and interest rates from 6.5% per annum for Home Mover ‘GAP’ Loans and from 9% per annum for Property Investor and Commercial Bridging Loans. Loans secured on non-property assets such as cars and jewellery will be charged at a significantly higher rate due to the risk profile. Please note that with our home-mover ‘GAP’ loans a single arrangement fee covers all set up costs including any valuations required and legal fees. In all cases when we offer you terms for a Bridging Loan we will clearly and transparently set out all the costs associated with the type and size of loan you require.
We offer Bridging Finance for any legitimate purpose including the following:
- Commercial and Residential property/land purchase – open-ended and fixed-term agreements to allow you to take full advantage of market opportunities.
- Finance for property auction sales and to acquire property deemed ‘unmortgageable’ in its current state.
- Loan to pay VAT, personal tax bills and any other creditor demands
- Financial aid to stop property re-possessions.
- Finance for employed & self-employed applicants and generally with no proof of income required.
- Short term Property development finance for established professional developers and individual investors
- Mortgage ‘gap‘ finance which allows you to affordably complete on a new residential property purchase when your own sale is delayed or fallen through ensuring you don’t lose your desired property – either UK or overseas.
Key Service Benefits Provided by The B Financial Team:
- Residential Bridging Loans offered from £10,000 to £10 million
- Commercial Bridging Loans from £50,000 to £25 million
- Bridging Loans from £10,000 to £25 million
- Home-mover ‘Mortgage Gap’ loans from just 6% per annum
- 1 day to 24-month loan terms with daily interest rate calculations.
- Highly competitive interest rates starting from just 6.5% per annum for home-movers ‘GAP’ loans.
- Interest accrual (‘roll up’) may be possible during the term of the loan.
- Loan to value (LTV) up to 75% of the security value based on an open market basis.
- Additional funds advanced if other security can make available.
- Short term ‘ Purchase and Re-Mortgage’ arrangements for ‘closed’ bridging loans.
- Bridging Finance for Property Development / Refurbishment Projects – Initial Advance followed by stage payments for the development works.
- Immediate lending decisions and funds advanced rapidly once Valuers / Solicitors are instructed.
- Property Valuations and Legal Support promptly arranged via our office if required.
- We provide you with a Fully Managed Service with regular ( daily / hourly) progress updates as appropriate.
- Short term Mortgage ‘Gap’ loans offered at near to normal mortgage rates.
For more details of the unique ‘Mortgage GAP’ home mover Bridging Loan product – click here.
Our experienced finance team will handle the entire process on your behalf and ensure this is as simple and straightforward as possible. Call us today on 01293972071 or submit an enquiry. Office open daily from 09.00 am to 5.00 pm. In emergency situations, weekends and out of office hours please call 07878949248 ( leave a message if necessary – we appreciate your call and value your business).
Call us today on 01293972071 or submit an enquiry and we will normally be able to give you a decision in principle immediately and can arrange payout within days subject to completion of legal and any required valuation process. After your contact form submission, the member of our team will be in touch shortly to discuss your requirements.