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Q1. What can your bridging loans be used for?
A1. Any purpose; including the straightforward purchase of a new house for own occupation, purchase of an investment property, refinance pending a sale or long term re-mortgage, capital raising etc. The only requirement is that the loan is short-term (up to 12 months) and there must be a proposed exit route (typically a sale or re-mortgage).
Q2. What security do you require?
A2. We require a first charge on a residential property situated in mainland England, Wales or Scotland. In some cases we may also take a charge (first or second) over a second property; for example, in the case of a purchase where there is a related sale we will usually take a first charge on one of the properties and a second charge on the other (assuming that there is, or will be, a first mortgage outstanding)
Q3. How long can I borrow the money for?
A3. For a maximum period of 18 months. In the majority of cases, there is no minimum period.
Q4. When I can expect to receive the funds?
A4. It is possible for funds to be available within as little as 5 working days from receipt of your accepted offer.
Q5. What is your maximum loan to value?
A5. We will lend up to 75% of the property’s Market Value, on a first mortgage basis. We can provide 100% of the purchase price, provided there is a second property available as security with sufficient equity (on a first or second charge basis) to reduce the overall loan to value to not more than 75%.
Q6. What is the difference between ‘closed’ and ‘open ended’ bridging?
A6. A ‘closed’ bridge is where the repayment source of the loan is already in place, but the timing of it is such that the funds will not be available in time to meet the immediate funding requirement e.g. where contracts have been exchanged on the property being sold, but the completion date of the sale is beyond the date that funds are required to purchase the new property.
An ‘open ended’ bridge is where the intended repayment source is known, but is not guaranteed e.g. in the example given above the property being sold may be on the market, but with no buyer in place and therefore the date of sale will be unknown.
Your home may be repossessed if
you do not keep up repayments on your mortgage.
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