Bridging Loan Example

Bridging Loan Service

Looking for a bridging loan solution?

Special features of what we offer include:

• Bridging home finance - from £50,000 to £15 million

• Fast finance - Looking to buy a house and need fast finance?

• Terms of finance - From 1 month to 3 years

To investigate how to get a bridging loan call our finance team on 0117 313 6058 or fill in our call back form.

Bridging Loan Example

Case Study:

Bridging Loan: Required For 12 Months

Capital raised: £1.5 million

Area: London

The client needed a fast bridging solution in order to refinance away from their existing lender.

The clock was ticking and an ambitious completion timescale was required from the start, with all parties aware of the significance of this date.

After receiving the valuation report, the bridging lending team and their in-house legal team worked to address a number of outstanding conditions before completing the loan. The bridging loan was provided within two weeks of the formal mortgage offer being issued.

This was including some potential stumbling blocks that posed a threat to the completion timescale.

Several of the searches requested from the borrower’s solicitor, including for Local Authority, Drainage and Water, CancelCheck, Groundwise and National Grid Wayleave were in some cases found to be up to 3 years old.

The bridging lender’s usual policy was to only accept searches conducted within the last 6 months but the Lending Manager took a pragmatic approach, with the case proceeding with an updated Local Authority and Drainage and Water search – all that was required to progress.

The Lending Manager obtained further input from both the architect and planning consultant in connection with the outstanding queries. Upon receipt of satisfactory answers from the architetch and planning consultant, the bridging lender was able to complete the loan and provide the broker’s client with desired outcome.

Commentary:

This bridging loan was completed in the timescale required due to the pragmatic outlook of the bridging lender. Selecting the right lender can be the crucial difference in getting the finance required.

To discuss your bridging loan requirements contact us today on 0117 313 6058.

How To Get Bridging Finance

A bridging loan is a specialist loan designed for short-term situations to provide a temporary cash flow solution or ‘bridge’ before additional permanent finance becomes available.

This type of loan or finance can be ideal when you are up against the clock and funds are needed quickly. A typical scenario is where you have yet to sell your house, but you have found a new property. You could access the short-term finance from a bridging loan to secure the purchase until your sale goes through.

The process for obtaining a bridge mortgage is usually straightforward with a more flexible set of criteria than most high street banks and mortgage lenders.

Like a mortgage, a bridging loan is secured against property or asset with the typical loan to value in the region of 70%. However, up to 100% bridging is possible if there are other assets that can be used in the background as leverage.

Call our team today on 0117 313 6058 or complete our callback form.

Types of bridging mortgage finance

Bridging finance comes in 2 forms:

• 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 finance 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 of bridging mortgages

Short-term finance is more expensive than long-term funding, however with the extra cost you get speed and convenience.

If you are looking at bridging loan options call us on 0117 313 6058 or complete our request callback form.