Bridging Loans For Self Build
Our Bridging Loan Service
Special features of what we offer include:
- Self build bridging loans up to £25 million
- Terms of finance from 1 month - 36 months
- Whole of market service - we work directly with UK bridging lenders
- Lowest rates - Access to leading bridging loan deals
- Exclusive deals - Access to exclusive bridging loan deals not available on the high street
- Fast turnaround - speak to us today if you need to move quickly
- Buying a property at auction? - call us today
To investigate your bridging loan options, call our mortgage team on 0117 313 6058 or fill in our call back form.
We can provide bridging loan options and then provide mortgage solutions once the bridging loan is no longer needed.
Bridging Loans For Self Build
Bridging loans can offer a way for borrowers to get short-term property finance. As the name suggests, this kind of finance is intended to ‘bridge’ the interim period between a borrower being required to pay for a property or plot and them being able to receive funding to do so. Bridging loans can be used as temporary finance before a sale of another property or the approval and payment of a more long-term finance plan such as a mortgage.
Using a bridging loan for self-build
Some borrowers might consider using a bridging loan rather than a self-build mortgage in instances where they are thinking of building/restoring a property. This might happen in scenarios where there is a property on a plot that many lenders would consider ‘unmortgageable’, which could mean that it is particularly run down or that it lacks basic plumbing/electrics or a kitchen. However, it is important to remember that many bridging loans have a requirement that full repayment is made within 12 months. Therefore, any borrower considering this type of finance would need to carefully think about if they will be able to raise the necessary repayment capital or get suitable finance in time. They should consider things such as would they be able to make repayment if they experienced any delays in construction works on the property or getting a mortgage.
Types of bridging loan
Bridging loans can be classified into categories of either ‘closed’ or ‘open’ depending on their terms and conditions.
- Closed bridging loans – Usually have a fixed date of repayment. The borrower knows exactly when they are required to repay the loan and the maximum interest they will need to repay.
- Open bridging Loans – With an open bridging loan you will have no fixed date of repayment, but it is common for a lender to still require the loan to be repaid within 12 months.
Before taking out bridging finance
Before applying for a bridging loan, borrowers should be aware that these types of loans are generally secured as a first charge against property or land. This means that failure to make your repayments could result in subsequent repossession.
Bridging finance also tends to offer higher interest rates and fees than you would expect with a mortgage.
During the application for a bridging loan, a borrower may need to provide the lender with a summary of the deal. This could include descriptions for the reasons behind the need for finance, what security will be provided on the loan and details of their exit strategy such as repaying the loan through a mortgage or other means. Any security will need to be valued with the lender.
Borrowers may wish to consider other finanance options, such as self build mortgages, which are a type of mortgage specially intended to be used for borrowers who are constructing a property.
If you have been considering bridging finance, you may wish to think about using the services of an independent adviser; they can offer impartial advice, a whole of market service and use their knowledge of the industry to compare products from a range of different lenders.
To contact us fill in the online contact form, or call directly on: 0117 313 6058