Bridging loans are a means of lending money quickly over a short period of time. With the high street Banks tightening their lending policy’s Bridging loans have become a very popular solution for borrowers who have not been able to obtain funds from high street lenders or other traditional routes.
- Any business purpose
- Investment property’s
- Public house
- HMO (Houses of multiple occupancy)
- Releasing capital
- Care homes
Types of Bridging Loans
There are 2 types of Bridging loans, regulated and none regulated, regulated bridging loans are secured against residential property, if the client intends to live in the property or use at least 40% of it then it’s regulated, none regulated bridging loans are secured against commercial and buy to let property’s where the client doesn’t intend to live in the property and for investment purposes only.
The bridging loan market has become very competitive over the last couple of years and we have seen rates fall quite significantly, straight forward bridging rates start from as little as 0.54% a month to 1.5% a month on hard to place cases, as a guide bridging lenders will lend between 50 – 80% of what the property or piece of land is worth, some will go up to 100% with additional security or suitable discounts of above 25%.
We have a comprehensive panel of Bridging lenders who have a large appetite to lend, if you have a client who is looking for short term finance, a Bridging loan could be the answer they are looking for, give us a call on 08000 499136.
so we can assess your clients needs.