Bridging Loan – Your home for Cheap Bridging Rates.

If you need to buy a property quickly, or just raise fast finance, a bridging loan might be your best option.

The bridging market has grown significantly over the last few years, giving you an almost dizzying amount of options to raise fast finance. With all the choice, the various options can blend into one mush, making it very difficult to cut through the noise and get to the details that matter to you.

When we look at arranging bridging loans, we find out precisely what you need and what you are raising the finance for, putting you with a lender that suits your needs.

Don’t wait, just call Volo FS on 01492 233 999 – No obligation or cost with the potential to save you thousands – it’ll be the best call you make today.

What is a bridging loan?

They are loans designed to be taken over a relatively short period of time. Loan terms are generally from a few days up to a couple of years, using equity in property as the security. The amounts can vary, with some lenders starting at £25,001 up to multi million pound facilities.

They are generally used when finance needs to be raised quickly or on property that a standard lender won’t use as security.

How bridging loans work.

They are secured on property of some sort, with the equity available determining how much can be borrowed.

The focus with bridging is normally speed of completion. They can be put in place within days, meaning they are a very flexible way of borrowing money.
More expensive than standard loans, bridging is only suitable for short periods of time, where a definite exit route is in place or expected.

Some of the benefits these loans have include:

• Fast to set up.
• Most property can be used as security for your loan, including those that normal lenders wouldn’t touch.
• Interest is generally added to the loan, or taken off the gross loan, so you don’t need to make monthly payments.
• Most lenders aren’t interested in poor credit rating. Most of the lending decision comes down to the property.
• More flexibility on who can borrow the money.
• Some loans come without early redemption penalties or exit fees.

What is commercial bridging finance?

These are similar to residential loans but are used by businesses, for a variety of reasons.

• Clear Bills: There are times when an unexpected bill comes in that needs to be cleared before a standard commercial loan can be arranged.
• Business Cash Injection: If, for example, a large order comes in, the business may need some quick cash to be able to fulfil for the customer.
• Buy Property: Property bargains come along from time to time. Property dealers can secure a discounted purchase price if the sale can be concluded quickly, bridging can help with this. It might also be a property that needs work, or is being developed completely so a standard loan would not be possible.
• Stopping Repossession: Bridging can be used to clear arrears on a mortgage to stop a loan being called in, or even clear the whole facility while a long term solution is found.

What are Open and Closed bridging loans?

You may have heard of the terms Open and Closed bridging in the past.

Open Bridging Loan.

This is where there is no definite date for the loan to be repaid. A typical example is where the sale of a property is the method to repay the bridge. It may take a month, 6 months or even a year to conclude when a buyer isn’t in place at the start of the loan term.

Closed Bridging Loan.

These are for when there IS a date set to repay. You might be able to say for sure when you will repay because you’ve already exchanged contracts on a sale or it might be that you have an investment maturing on a set date.

Whenever you take out a bridging loan you should always have the “exit route” in mind. This the way you intend to repay the bridge loan on, or before the date your bridge expires.

Wide Range of bridging options.

Bridging is a very felxible type of loan.

What can bridging loans be used for?

Bridging can be used for any legal purpose. You might want to keep a sale chain together or just move quickly to buy a new property, no matter the situation, we can help find the right loan for you.

What can you use as security for your bridging loan?

Basically any property can be used as security for a bridge and it doesn’t have to be house, either.

Bridging Loan Case Study

What happens when you need to move quickly?

The client had found a property they wanted to buy. They’d negotiated a great price for the house but they’d only get the bargain if they completed the purchase within a couple of weeks.

Not wanting to miss out on the opportunity they looked into bridging finance as an option because they knew a normal buy to let mortgage would take too long to arrange.

They called us to see what we could do for them. Within a couple of minutes it was clear we could help and had lenders in mind who would jump at the opportunity to lend money to this client and on this property.

We were able to give them a basic quote over the phone during the first conversation and within half an hour we had full terms from the lender confirming our initial quote.

In this case we used one of our private lenders who we’ve known for over 10 years. We knew Peter wouldn’t let us down and could assure the client would have the funds they needed within their timescale.

The sale was able to be completed with the client very happy with our exceptional service, attention to detail and knowledge of the market.

Simple loan application process.

Applying for loans can be long winded and confusing. To make sure you don’t waste time and money we so all we can to make the process as easy as possible.

1. First Contact.

We will have a no obligation conversation about what you need and how we can help you. On that first call we can give you our initial thoughts on the likely loan rates and terms you can expect. We will talk to the most suitable lenders for your case and once we have an in-depth quote we will send you the details.

Don’t forget, we deal with the whole market, so your quote will be the best we believe is available.

2. Full Quote and Application.

At this point, we send you the application form and collect the relevant documentation from you. If the loan requires a valuation it will be instructed now, as it is key to all loans secured on property.

As the loan will be dependant on the value of the property, you can wait until the valuation is back but at this point, when the time is right, solicitors will also be instructed.

3. Drawdown of Funds.

Once all the relevant information has been submitted to the lender and the legal process has been completed, the funds will be sent to your solicitor and transferred to your bank.