Bridging Loans
Our bridging Loans Service
Special features of what we offer include:
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Bridging finance from £50,000 to £15 million
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Loan monthly interest rates from 0.55% pm
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Terms of finance from 1 to 36 months
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Funding for: Buying a residential house before selling your existing one; Downsizing/Upsizing residential home; Investment property purchase; For buying, renovating & selling properties; development finance; exiting development finance; business purposes; auction purchase; extending short term leases;
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Finance for individuals, limited companies, sole traders and partnerships
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Interest roll-up schemes
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Lowest rates - Access to leading bridging loan deals
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Fast turnaround - speak to us today if you need to move quickly. 5 to 7 days possible.
To investigate your loan options, call our team on 0117 313 6058 or fill in our call back form.
We can provide bridge options and then provide mortgage solutions once the bridging loan is no longer required.
Flexible Short Term Finance
Bridging loans are a specialist kind of loan designed solely for short-term usage to provide a temporary cash flow solution to ‘bridge the gap’ before additional permanent finance becomes available e.g. a traditional mortgage.
The method for obtaining a short term loan is straightforward and really versatile with a more flexible set of criteria than most high street banks and mortgage lenders. Like a mortgage, a bridging loan is secured against your property.
Call our specialist finance team today or complete our callback request form.
How do bridging loans work?
Bridging loans are frequently utilised as an answer to a temporary cash flow problem.
A common example of this type of situation is when a person wishes to buy a property but still needs to sell their existing home. A bridging loan can, in these circumstances, provide a solution by offering short-term funding.
If the finance is for a residential property which includes any property you have lived in currently or previously then the maximum term you can take out a loan is 12 months. Known as regulated bridging finance this type of funding comes under the remit of the FCA (Financial Conduct Authority).
For property that is not being used by you for residential purposes where the transaction is of an investment nature e.g. buying a property for buy to let or where you are buying, renovating and selling then the period of time you can have the loan can be longer terms than 12 months. Some lenders offer open ended bridge arrangements.
Bridging Loan Calculator
See our bridging loan calculator to get an indicative quote based on your situation.
What situations might require a bridging loan?
You can use a bridging loan to:
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Beat the competition - Secure a property quickly before it is snapped up by another buyer – even if you have not yet sold your current home. Cash is king and showing that you can move quickly on a property sale to an estate agent can make the difference in securing the property you want.
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Mortgage chain issues? - Buy a property even in the event that the home buying chain breaks down – for example, if the sale of your old house falls through, a bridging loan can allow you to still have sufficient funds to purchase the new house
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Buying an auction property? – Use a bridging loan to pay the required percentage needed to secure the property on the day of the auction
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Need to move fast? - Get a fast, temporary cash injection when you most need it during the property purchasing process. The ability to move quickly can make the difference on any property transaction.
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Development finance - If you are buying property to redevelop and you need finance to get your project off the ground, then a bridging loan could help make the difference. We can arrange finance for land with outline or full planning as well as funding for the ongoing development proposed.
Types of bridging loans
Bridging loans come in two varieties.
The first is the closed bridging loan. This is exclusively available to people who have already exchanged on a specific property and need the finance to secure it. This type of bridging loan can be easier to come by, as the lender will consider the sale unlikely to fall though at this point.
The second type of bridging loan is known as an open bridging loan. This is aimed at people who have found a property they want to buy, but have not yet sold their current home. Due to the increased chance of a sale not occurring, lenders are often more reluctant to offer open bridging loans. Your chances of acceptance will be increased if you have a lot of equity in your current property.
Conditions & costs of bridge finance
Short term finance can be used for almost any purpose and can be secured on many different types of property. In some cases you may be able to borrow up to 80% of the value of the property (investment properties only).
Use our bridging calculator to get a indicative quote of what the costs are for finance.
The minimum loan amount you can get on a bridge will generally be from £25,000. For regulated finance the minimum is typically £50,000.
Typically you will be charged a 2% lender arrangement fee. UK monthly loan rates start from 0.49% pm. You only pay interest for the time you hold the loan e.g. if you arrange a 12 month bridge but pay it off after 6 months, then you will only pay interest for the 6 month duration. There are associated valuation fees that will be levied for the properties on which the loan will be secured on. Legal fees will be charged. There also may be administration fees e.g. for removing the charge on the loan when it is repaid. We charge a broker fee for arranging and administrating the process on your behalf.
However, due to their speed and convenience, bridging loans often charge high rates of interest. Therefore, before choosing a bridging loan, make sure you research the market and consider all your funding options before applying.
For bridging loans in excess of £500,000 go to our sister site Clifton Private Finance who have offices in Bristol (Registered office) and Cardiff.
If you are unsure about what bridging loan is suitable for you, call us on 0117 313 6058 or complete our request callback form.
Fair Mortgages Ltd in registered in England & Wales and specializes in financial services solutions for financing new and existing property in the UK.