BRIDGING / SHORT TERM LOANS
A bridging loan is effectively a short-term loan secured on property by way of either a first or second mortgage. Short term bridging loans can provide invaluable help in cases of temporary cash shortfall.
Bridging loans can be used for a number of reasons:
Usually a bridging loan is for a period of 3 to 12 months, however a longer term may be justified under certain circumstances.
Monthly interest payments are usually required to be paid during the period of the loan or can be deferred or rolled up until completion.
Full Status:
Product type Regulated and non-regulated products available
Locations England and Wales only
Max LTV* Up to 75%
Up to 85% for a closed bridge only
*LTV is based upon Open Market Value (OMV)
Max Loan Size No maximum loan size
Min Loan Size £30,000
Interest rate I / **: < 50% LTV (OMV) From 0.95% PCM
From 51% up to 75% LTV (OMV) From 1.25% PCM
Up to 85% LTV (OMV) for closed bridge only From 1.00% PCM
1 Where there is a discount greater than 20% of the property’s open market value (OMV) interest rates from 1.45%
** For central London properties and loans greater than £500,000 interest rates and fees subject to negotiation
Loan Term Minimum 1 month, maximum 12 months
NB: the loan term cannot exceed 12 months
Fees Administration Fee £495 – deducted from the advance upon completion
Legal fee £495 (For offshore applications – legal fees by negotiation)
Facility Fee 1% of loan amount
NO EARLY EXIT FEES OR REDEMPTION PENALTIES
Non Status
All types of property
Maximum 65% of 90 day valuation
Interest only
Commitment fee (2.5%) deducted from advance
Valuation fee (varies) and legal fees (usually 1% of advance plus VAT) paid by borrower
Borrower pays £500 inspection fee
three months' interest on redemption
no minimum or maximum term
Loans could be completed within 24 hours, but the average time is normally about 10 days
You will need to have an exit strategy in place i.e. a conventional loan or mortgage to repay the Bridging loan.
Contact us today for a distinctive view on how we can help your business realise more cash more quickly.
No matter what your circumstances we may be able help.
Call 0845 226 7141 NOW (Local rate within the UK)
+44 1792 864 699 (International)
