In most cases, the only upfront cost to the borrower is the valuation fee, and legal fees.
Providing there is sufficient usable equity within the security property, a further advance may be approved.
In most circumstances, loan repayments are rolled up within the loan. For those clients wishing to pay monthly, yes, the payment date can be changed.
We are able to lend to all of the above, subject to due diligence. Personal guarantees are required for loans made to any of the above entities.
The loan can be repaid at any time without penalty or early repayment charges. We usually require a minimum of just the first month’s interest.
The exit or repayment method is perhaps the most important aspect of a bridging loan. There must always be a realistic exit but it does not have to be in place when the bridging loan draws down. For example, if the loan is to be repaid by the sale of a property, contracts do not have to be exchanged. It is usually enough that the property is being marketed.
The time taken to complete a bridging loan depends on the borrower’s requirements. They can complete within a few days of the first enquiry but this requires all parties to work together and for the valuer to have immediate access to the security property. Our solicitors will assist the borrower’s solicitors as required.
All extensions to short term loans are considered on a case by case basis.
Bridging loans can be used for any lawful purpose. However, we are unable to help with “credit repair” cases.
We lend against residential and commercial properties.
Please note that where the security is your residential home, your home may be repossessed if you do not keep up repayments on your bridging loan.
To enable us to send you a credit approved decision in principle, we need a completed bridging finance enquiry form. Once the form has been completed please email it to [email protected]
We lend in England, Wales & Scotland (Scotland will be assessed on a case by case basis).
We employ property housing specialists who will efficiently appraise a project based on the key information. We can issue a formal letter within 24 hours of approval.
The average time is usually 2 weeks, but we could possibly send funds within 2-3 working days of an offer letter being accepted if the borrower’s solicitor has all of the relevant documents.
Nothing has to be paid until terms have been accepted, so we can immediately progress the legal and valuation fees that are payable. These will be directed to our expert teams and paid over the phone by debit or credit card. There is a typical arrangement fee of 2% that is deducted from the first advance. The loan will also have a fixed interest rate during the period that the sums are borrowed, which will be agreed individually with the borrower. The project will also have surveyors and solicitors fees.
The percentage we lend towards a site purchase depends on each individual facility. We can lend up to 100% of the construction costs.