A bridging loan is a short-term loan that is secured against a property for a short period of time, usually, for no more than 12 months, bridging loans can, however, be taken out for 3-6-9 or 12 months depending on how long the borrower thinks they will need to repay the loan. Bridging loans can be on either a first for second charge basis.
A bridge financing calculator can also be used to work out what your overall costs will be when taking out this kind of loan or finance.
As interest is charged for each day the loan is outstanding rather than for the whole period of the outstanding loan you should consider taking the loan for the full 12 months as almost all loans are, monthly interest rates start from just 3.8% pm.
We have a very experienced team working on providing the best deals from the best banks and bridging lenders all who offer short-term finance.
Listed below are some instances that you would consider a bridging loan for:
Purchase a property before you have sold your own.
This is the most common use of bridging finance, for a property purchase, used when a chain of sales has been broken or when you have found a property you wish to buy but cannot put an offer in or make the purchase without your existing home being sold. The loan can be spread over both properties or be made against your existing property or the one you intend to purchase. Once you sell the property that the loan is secured against the proceeds are used to repay the bridging loan.
Buying Property at Auction
After being successful at auction you only have less than a month in order to pay for the property, few mortgages can be arranged in such a short period of time. This is where a bridging loan comes in because they can be arranged in as little as 7 days, they are commonly used to purchase properties at auction. After payment has been made you can then look to arrange long-term funding with a buy to let mortgage or sell and redeem the bridging loan.
Renovation of a dilapidated property
Many property developers rely on bridging loans to purchase, renovate and sell properties because the loans are quick to arrange and have no early redemption penalties they make idea finance for purchasing and turning a property quickly and then moving on to the next project.
Below market value purchase
If you find a property that is far below market value, you need cheap finance quickly to either exchange contracts and secure the property or make full payment, either way, bridging finance is the answer because finance can be in place in as little as seven days you will be able to secure the property quickly.
Business Cash Flow
Bridging finance can also be used to help with your business cash flow, make a plant or equipment purchase, or any other business related purchase you need funding for.
Any other reason
When you take out a bridging loan you can use the funds for anything you choose, all the lenders require is that you have the means to repay the loan and do so on time, if however payments are late then you could face additional administration fees.
With over 80 lenders offering bridging loans in the UK it is vital you get the best loan for your circumstance, we compare all bridging loans on on offer to get you the very best rates on offer anywhere.
By using our comparison service for your bridging loan we will compare bridging finance rates from all of the lenders who would be able to offer you a bridging loan for your circumtstances, this will ensure you have the very best interest rates for your loan.
Note Some bridging loans and finance are covered by the financial conduct authority but not all so it pays to check if your loan is likely to regulated or not.
Property Development Finance & Loans
We look to offer Property Development Finance & loans for a wide array of projects be that conversion, new build or a full refurbishment, We have a proven track record with both experienced developers and also first-time developers who need a guiding hand. Whichever you are we can offer you the best development loans available in the country. We can also provide developer loans throughout the united kingdom.
Property Development loans are very similar to a bridging loan but with a primary focus on developing either commercial or residential property while a bridging loan is used for “bridging the gap” between property purchases and also for short-term finance requirements.
Past development experience is preferred by the majority of lenders. Despite this, we look at each case individually so no client is ever automatically ruled out due to a limited amount of previous experience. What the lenders look for is an experienced team to back the developer if their own experience is limited.
We can offer Property Development Finance of £150,000-£10m with the possibility of a 100% loan-to-value if extra security is suitable to lend against. The terms we can provide vary from 6 months to 18 months depending on what is needed. The rate of interest could start from as low as 4% pa with arrangement fees of between 1-2% of the loan amount.
We can provide you with a developer loan and financial services anywhere in England, Scotland and Wales.
A Property Development loan can be taken out to build new property or properties on land as long as there is a suitable security and full planning permission is approved for the development.
Commercial property development
Property Development Finance can be taken out for the construction or renovation of commercial properties such as hotels or shops, care homes, factories mixed-use schemes, in fact almost all commercial properties providing you have a tenant lined up.
Residential property development
Property development Finance can also be taken out for the construction or renovation of residential properties. Examples of this include building flats or renovating a house.
Developments at varying stages of completion
Whether the project has just begun and planning permission hasn’t been received yet or the project is halfway complete and more funds are needed, a development loan can be taken out to work on the project.
Land without planning permission
It is also possible to take out property development loans on land that is yet to have received planning permission. As long as a project plan has been laid out, a loan can be obtained.
Other property development situations
We can provide development loans for a large variety of development situations. Contact our team to see if we can accommodate your scheme.
Thanks to our very experienced brokers and close ties to reputable lenders, we can ensure the best rates available as well as provide expert advice to our clients. We have worked on many projects in the past with well-known developers, providing finance from lenders in the UK.
Top 10 finance Ltd is authorised by The Financial Conduct Authority (FCA) no 725234 The FCA do not regulate all mortgages such as Buy to Let and Commercial. Think Carefully before securing debts against your home. Your property could be repossessed if you do not keep up repayments on your mortgage or any other debt secured on it. We are registered and comply with the Data Protection Act (1998). Registration No: Z2861884 Company registered in England number 06261373. Natwest Secured Loans
Simply complete the 20-second form to search for a Bridging Loan or Property Development Finance we have the best deals in the UK for both Bridging Loans & Development Loans.
If you are looking for Property Development Finance or a Bridging Loan, we have access to the whole of the market, use our simple form to compare 2,500 Products from over 80 Lenders.