Frequently Asked Questions

Answer:

The simple answer is yes! Bridging finance is typically offered on a non-status basis, therefore providing you own property with equity that fits a bridging lenders criteria.

Commercial or residential property can be offered as security for a bridging loan. Personal circumstances can more or less be ignored, but not always! Check with us first whether previous or current credit problems may cause problems for lenders. The method of repayment is important too, having a guaranteed exit date is better than a sale at some future date. A change in market conditions invariably means a change in a bridging finance lenders view on any given repayment option.

Currently the typical maximum loan to value for residential property is circa 70%.

For commercial property, bridging lenders offer loan to values about 5% to 10% lower than for residential.

For second charge lending a further reduction 5% to 10% of value is typical.

Note that costs will reflect associated risks, for example a second charge loan almost always costs more than a first charge loan.