Barclays Bridging Loan
Barclays Bridging Loans
Compare Barclays bridging loan rates with what the market has to offer.
Our specialist finance service offers:
- Bridging loans - From £50,000 to £25m
- Fast turnaround - speak to us today if you need to move quickly
- Whole of market service - we can compare short term finance providers across the UK market
- Access to leading market mortgage rates - in most casesm, after you have secured your auction property, you will want to replace short term or bridging finance with a mortgage - we can help
- Exclusive finance deals - Access to exclusive loan deals not available on the high street
To investigate your bridging loan options call our mortgage team on 0117 313 6058 or fill in our call back form.
Bridging Loan Process
Need to move quickly? When it comes to property purchase sometimes you need to move quickly. You need to be well prepared. Getting the necessary cash together to secure your property can be a challenge when there is time pressure or other competition, but fortunately there is a specialist type of short term loan called a bridging loan that can help. A bridging loan is a type of finance that is designed to get you the funds you require faster than a conventional mortgage.
Typically the following will apply to bridging loans:
- The interest rates payable on bridging loans are typically higher than standard mortgages, as they often carry more risk to the lender.
- 'Rolled-up' interest – Depending on the lender, borrowers can sometimes choose to have interest payments 'rolled-up'. This means that they do not have to pay interest every month, but instead pay the 'rolled-up' interest at the end of the bridge term. This is suited to borrowers unable to make monthly interest payments. In these circumstances, interest is typically compounded. So, while a borrower will not pay interest monthly, the repayment at the end of the term will be larger.
- Retained interest - To assist in meeting monthly interest payments, you can sometimes choose to retain from the loan an amount representing a number of monthly interest payments. The borrower can choose the number of months (if affordability criteria can be satisfied). The retained interest is still part of the capital sum of the loan, so interest will be charged on this amount. The total loan must fit within the loan to 1%–1.5% interest rate per month (with a 1%–2% arrangement fee/broker fee up to a 70%–75% loan to value)
- If there is any retained interest which is not utilised by the time of redemption of the loan, most lenders will normally provide a credit for this amount.
Bridging loans are becoming increasingly recognised as useful and valuable by individuals and businesses looking for quick, short-term funding solutions.
Fast and flexible, it provides people with the finances that they need in order to remedy a cash flow issue or take advantage of an opportunity, which they otherwise may have not been able to secure.
For anyone looking into obtaining a bridging loan, it is important to take the time to find a reputable lender with the following accreditations:
- A member of The Council of Mortgage Lenders
- Authorised and regulated by the FCA (Financial Conduct Authority)
- Proven track record
- Experienced in working on projects similar to yours
Call us on 0117 313 6058 to discuss your finance options today.