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Bridging Finance and Short Term Funding
A bridging loan is similar to a mortgage, but designed only for a short-term with high interest rates, until you’ve sold your existing property, investment or until longer term financing can be arranged. The loan period varies according to the convenience of the borrower.
Bridging Finance from £26,000 upwards available for:
- All Residential (May be extended at the end of the term)
- Semi-commercial
- Commercial
- Landowners (up to 100% funding available)
- Construction
Where appropriate long-term property finance can be arranged to provide 'exit' from initial, short-term development finance.
Bridging finance also available in the following circumstances:
- CCJ's and Arrears
- Discharged Bankrupts
- IVA's
- Self-Employed (no accounts necessary)
Other possible permutations are :
- Interest rates from 0.75% per month
- Pay legal fees on Completion
- Interest can be added to the loan
- Up to 100% of purchase price possible (further securities required)
- 1 months to 3 years
- Development Finance up to 70% of the purchase price of the site and up to 70% of development cost
- Stage payments, roll-up and deferred payments with no interest rate loading.
- Land finance available for land purchase with or without planning permission or with or without agricultural restrictions.
- Open ended bridging available
Rates vary from 1.0% to 5.5% above Bank Base Rate or the Libor Rate.
A valuation fee is payable on taking out a bridging loan.
About Mearns Financial Mearns Financial provide brokerage for Commercial Mortgages, short-term |
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Your home is at risk if you do not keep up repayments on a mortgage or other loan secured on it.
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Bridging Finance or Interim Finance Explained
A bridging loan is a short-term loan secured against a freehold or
long-leasehold property allowing business people and individuals to:
- Borrow money against the actual market value of a property rather than a discounted purchase price.
- Purchase one property before completion on the sale of another.
- Arrange temporary funding for the purchase of a an un-mortgagable property pending repairs.
- Fund the purchase of a property in need of refurbishment, with a view to resale on completion of the improvements. In these circumstances we can also arrange additional funds cover the cost of the works.
- Beat a deadline to buy a property, for example funding the urgent purchase of a property pending arrangement of a long-term mortgage. This can be particularly useful in auction situations.
- Release cash quickly without being tied into a long-term mortgage.
- Borrow short-term against the value of a property, not against income multiples.