Purchasing a home with a bridging loan may be something you have never considered. A long held view is that bridging is prohibitively expensive, however due to the expansion of the market, more competition and better regulation in these areas bridging finance is becoming a more popular and ultimately more affordable option.
With rates starting at just 0.44% a month, bridging could be the answer when you are looking to secure your dream property in the quickest possible time – a great example would be when you want to purchase a property, but have yet to sell your own.
Best of all you do not need to make monthly payments on a bridge, as the interest is rolled until you ‘exit’ the loan – so you make one final payment when your property has sold or by refinancing with a traditional mortgage.
We aim to make the process of applying for a bridging loan as simple as possible, with no extra hidden fees and laid out and explained in terms you fully understand.
Our 10 step guide below gives an overview of how we work with you when you are looking for bridging finance:
1. In our first chat we will find out what your requirements are – this will include the size of the loan you need and what property or properties we will use as security for the loan.
2. We are completely independent and will search across the market before issuing bespoke terms for your deal and full costings.
3. Our chosen lender will then issue a Decision in Principle to confirm they are happy to offer the loan subject to the usual checks.
4. You will then give us the go ahead to proceed with the deal.
5. The lender will then send out their own surveyor to value your property.
6. The valuation is then assessed by the lender and assuming this is all OK.
7. The lender will then have the loan signed off by their credit team.
8. The offer of loan will then be issued.
9. Your solicitor then prepares the relevant paperwork.
10. Finally the funds will be released and your purchase can complete.
Bridging finance is typically a 3-4 week process but we have completed deals in as little as five working days – as such if you have an emergency such as losing your buyer after you have exchanged contracts we are perfectly positioned to assist.