BRIDGING LOAN CASE STUDIES:
1. GEOFF & ELIZABETH JONES - RETIRED TEACHERS
Geoff and Elizabeth Jones have owned their house for 25 years. Their three children have flown the nest and they want to downsize as the property is now too big for their current needs.
They find their dream cottage that requires some light refurbishment before they can move in but they do not want to wait for their existing property to sell as they may lose out to a rival homebuyer.
They spread the finance across both properties (finance is secured against the sum of both values) allowing them to benefit from a lower LTV (Loan to Value).
They complete the sale of their existing property six months later, pay down the regulated bridge and are happily settled in their new home and their brand new kitchen without the worry of waiting nervously through numerous property viewings and estate agent promises.
2. JOHN & KIRSTY SMITH - YOUNG MARRIED COUPLE
John and Kirsty have been married for three years and have started planning on having a family.
Their existing two bedroom semi-detached property is now too small and they wish to make the jump to a bigger property in an area closer to schools and other families.
They found a four bedroom place that met their needs and needed to move quickly to secure the property.
However - their property was tied up in a long chain and they did not want to run the risk of losing the new property.
They decided to take independent advice from their mortgage broker and agreed to apply for a regulated bridging loan that would plug their short term need for finance.
The bridging lender advanced the loan and rather than having to risk their chain collapsing they were able to secure their dream family home within 2 weeks. Their existing two bedroom property sold quickly and having secured a mortgage on their new home through their mortgage broker, they were able to use the funds to fully repay the regulated bridging loan with no early repayment charges.
With bridging finance it is important you enter into this type of finance with a clear view of how you are going to repay this short term debt (also known as an exit strategy).
Confidence in the fact that your property will sell within the desired time frame is crucial and research to this effect is important. We recommend that you speak with an independent professional mortgage adviser to ensure that a regulated bridging loan is the right type of finance for you.
Call: 0117 313 7499 To speak to the Fair Mortgages Bridging Finance Team
Compare Bridging Loan Quotes
Our residential bridging loan service provides:
- Market leading bridging loan quotes
- Up to 70% LTV available on 1st charge; 75% on a 2nd charge
- Bridging Loan amounts from £10,000 to £10 million (higher amounts are possible)
- Completion possible within days not weeks
If you are interested in taking out a bridging loan finance can be arranged quickly – anything from 5 days depending on the bridging lender you use is possible and their process. Lenders will typically lend up to 75% loan to value on your existing property however this can be more depending on what other assets you have in the background.
What is achievable will depend on your circumstances - speaking to a bridging loan broker who can source lenders across the UK market to get you the right deal to discuss your needs and source quotes to help you find the best deal.
Why a Bridging Loan?
Bridging loans are very useful for short term finance and usually can be arranged very quickly. Bridging loan finance is suitable for acquiring property at auctions, funding the period between buying a new house and selling your old house, buying property for renovation and quick re-sale or other short term cash flow requirements.
Bridging Loan Information
- Typically you will have equity in your property such that total borrowings do not exceed 75-80% LTV (loan to value). You can get a higher LTV than this but you will need to offer additional security.
- You can be employed or self employed or in certain circumstances not working at all.
- Interest will be quoted and charged on a monthly basis.
- Typically there will be a completion fee for setting up the loan ranging between 1-2% of the loan as well as valuation and legal fees.
- The bridging loan term can range from 1 month to 12 months.
- The loan can be first or second charge on your property.
- at the end of the term loan can be converted into a residential or commercial mortgage.
- Bridging loans can be arranged for private individuals or companies.
- Loans available in England, Wales, Scotland and Northern Ireland.
Call: 0117 313 7499 to speak to our bridging finance team.
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