It is becoming more common that a homeowner looking to move will find a property they want to secure prior to the sale of their own house. In these situations, coupled with the speed of turnaround in the housing market that the possibility of losing the ideal property becomes a very real threat. It is here that bridging finance comes into its own.
The long held view is that a bridging loan for a property can be 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 for the average homemover.
The process of applying for bridging finance is a simple process – the 10 step guide below gives an overview of our process here at One 77:
- 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.
- As we are completely independent we will search across the market before issuing bespoke terms for your deal and full costings.
- Our chosen lender will then issue a Decision in Principle to confirm they are happy to offer the loan subject to the usual checks.
- You will then give us the go ahead to proceed with the deal.
- The lender will then send out their own surveyor to value your property.
- The valuation is then assessed by the lender and assuming this is all OK.
- The lender will then have the loan signed off by their credit team.
- The offer of loan will then be issued.
- Your solicitor then prepares the relevant paperwork.
- 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.
At One 77 our Specialist Lending Department have many years experience working with one of the largest groups of lenders on the market, and therefore have access to exclusive rates and products not available through lenders directly – these start at as little as 0.44% a month. Bridging could be the answer to you securing your dream property in the quickest possible time – a great example would be where you want to purchase but are yet to sell your own property.
The greatest benefit of bridging is that you do not need to make monthly payments on a bridge as the interest is rolled up (accumulated) until you ‘exit’ the loan. This is then typically achieved by selling your existing property or refinancing with a traditional mortgage.
If you are in need of bridging finance then call today on 01249 474956 or send a summary of your situation to us by completing the form below.