Bridging loans can be arranged on commercial, semi-commercial and residential properties, on either a first or second charge basis. Funds can be arranged for a variety of purposes. Funding of up to 75% of the market value of the property can be obtained. There is much competition in this sector and we have seen rates reduce greatly over the past year or so.
Bridging finance is normally secured on freehold or long leasehold property. However funding can also be secured against other tangible assets that can be professionally valued.
Most facilities are for 3-12 months. However facilities can be agreed up to 18-24 months in some circumstances. In addition there are medium term bridging facilities available at lower rates for up to three years on investment properties. Rates starting from circa 0.45% per month.
The key issues from the lenders view point are the quality of the properties being taken as security and the exit. They need to be comfortable that the property can be re-financed or sold reasonably easily to repay their loan.
Key benefits and uses of bridging finance:
• Auction purchases.
• Refurbishment projects
• Refinancing/capital raising
• Funds can be raised for a variety of purposes
• Quick decisions & quick release of funds.
• Loans can be secured on commercial and residential property
• Interest can be rolled up for the term of the loan
• Non status options available
Please contact us for further information or to discuss your requirements.
Not all forms of mortgage are regulated by the FCA.