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Do you have a bespoke finance requirement that requires a hassle-free funding solution?
Our wide reaching relationships with funders and investors enables us to tailor a bespoke financial package for you to achieve your goal.
We have access to all the best bridging loan providers, plus a range of exclusive facilities that are useful for applications that fall outside general lending criteria.
As specialist bridging loan brokers, we arrange the best possible finance facilities for all our clients.
Bridging loans are a form of fast, flexible short-term lending, usually for 12 months or less, which can be used by individuals or businesses. The loan can be used to “bridge” the gap in your finances until either a long-term financing solution can be put in place or alternative funds are received from another source, for example the sale of a property.
Bridging loans, which are sometimes referred to as swing loans or gap finance, are fast to arrange and allow the flexibility to enable you to take advantage of an opportunity that has arisen or obtain a quick cash injection if that’s required.
We aim to give our clients as much information about each service as possible to help them make an informed decision on their next move.
Below are some frequently asked questions about Bridging Loans.
When you take out a bridging loan, a ‘charge’ will be placed on your property. This is a legal agreement that prioritises which lenders will be repaid first should you fail to repay your loans. Both a first and second charge bridging loan take your property as security in case you default on repayments. Typically, if you still have a mortgage on your property, the bridging loan will be a second charge loan, meaning that if you failed to meet repayments and your home was sold to pay off your debts, your mortgage would be paid off first. But if you owned your property outright, or you were taking out a bridging loan to repay your mortgage in full, you would take out a first charge bridging loan. This means that the bridging loan would be repaid first if you fell behind with repayments.
Bridging loans are priced monthly, rather than annually, because people tend to take them out for a short period. One of the major downsides of a bridging loan is that they are quite expensive: you could face fees of between 0.5% and 1.5% per month. That makes them much pricier than a normal residential mortgage. The equivalent annual percentage rate (APR) on a bridging loan is between 6.1% and 19.6% – far higher than many mortgages. There are also set-up fees to consider, usually around 2% of the loan you want to take out, so it is advisable to only take a bridging loan out if you are confident that you won’t need it for a long period of time.
In cash terms, bridging loan providers might lend anything between £25,000 and over £25m. But you’ll usually only be able to borrow a maximum loan-to-value ratio (LTV) of 75% of the value of your property. If you are taking out a first-charge loan, you’ll typically be able to borrow more than if you were taking out a second charge loan.
If you want to move but can’t sell, you could also consider a let-to-buy mortgage arrangement. You can do this by remortgaging your current home onto a buy-to-let mortgage and using the equity released to buy a new property.
We are interested to hear about your requirements. Don’t be afraid to explain in more detail if you wish as the more information we have will help us to quickly provide you with advice or suggestions. We are here to help.
Do you have a client that is in need of a funding solution to a financial problem? We can help. Our introducer scheme can open up many more doors allowing you to place your client with the perfect finance package for their needs.