Bridging Loan Availability, Terms and Costs

Typical bridging costs would normally consist of up front fees i.e. valuation, legal and an arrangement fee plus monthly interest which you may be able to add to the loan depending on circumstances. These costs are simialr for both commercial and residential property.

Where your finance requirement is strictly short term then raising finance against equity locked within property can be very cost effective when compared to a medium term secured loan. If you compare interest rates between a short term loan and a standard fixed term loan then the latter appears to be much cheaper. However when comparing the total costs of both loan options, with a flexible bridging loan you can repay the principal without penalty after a short minimum term when you are ready, the overall savings can be huge!

Availability

  • Applicants:
  • Personal, company or self employed.
  • Discharged bankrupts, IVA's, CVA's, CCJ's or arrears.
  • Acceptable Property:
  • Residential, Semi-Commercial, Commercial, Retail Outlets.
  • Development Sites, Auction Property, Investments.
  • Land with outline planning consent.

Typical Loan Criteria

  • 85% loan to value for a closed bridge.
  • 75% loan to value for an open bridge.
  • Minimum Term 1 month (excludes back to back transactions).
  • Maximum Term 12 months.
  • Property Developers - see page for property developers.

Typical Loan Costs

Typical costs of short term bridging finance consist of the same elements as any property loan application, i.e. an arrangement fee, a valuation fee and legal costs. Interest cost are set on a monthly interest rate, starting from 0.75% per month and can be as high as 2%. The actual rate you will achieve will depend on whether you require a first or second charge loan and what loan to valuation is required i.e. the level of risk for the lender. Where sufficient equity exists, interest may be allowed to roll-up into the loan, otherwise monthly payments will need to be paid.

Note: If time is not a critical factor then other lower cost finance options may be available. For more details contact us or select the required bridging loan option from the menu.