Bridging Finance General Lending Criteria:

Secured on UK property by first or second charge. All Freehold properties considered Leaseholds with over 55 years

Min Loan Size £30,000 to £10 Million.

Self Cert non status funding

Non Status - Adverse or impaired credit accepted

Loan to value ( Open Bridging ) 75% - 80% of valuation

LTV 70% advance of OMV Open Bridge borrow more than purchase price

Loan to Value (Closed Bridging) 85% of valuation or 100% Purchse price

Interest rates from just 0.85% per month (Daily Interest calculation)

Interest Roll up or Interest deduction from loan advance

No redemption penalties for early repayment

Loan terms of 1 Day to 12months

Same day bridging arranged where exit funds are available.

Get the finance you need in just days

Development Finance to 100% Land cost and 100% project cost

Bridging Finance: Short term funding for all situations

Examples where bridging finance can assist:

 Property purchase for conversion and renovations

 Mortgage retentions - Purchasing a property where the valuation report recommends a part or full retention

 Homeowners who have or are about to be repossessed

 Avoiding or Annulling bankruptcy or company insolvency

 Asset in probate and inheritance tax bill

 Financing property at auction 

 Business acquisitions and management buy outs / Buy in

 Acquiring property where a fast completion is necessary

 Quick turnarounds for buying or renovating and re-selling properties for profit.

 Cash flow emergencies such as unexpected VAT bills, tax bills, business purposes

 Raising legal costs & lawyers fees or overseas medical costs.

Case Study: Auction purchase with bridging finance

A client urgently needed to raise funds against an unencumbered property, valued at £215k, to allow them to make a down payment on a property purchased at auction where their mortgage was declined.

They asked us for assistance and we quickly arranged a open bridging loan of £30,000 to cover the auction deposit. Funds were arranged and drawn down in 4 working days.  We arranged a BTL mortgage for the property at auction to complete within 28 days, repaying the bridging loan.

Case Study: Development Purchase and Remortgage

A property developer secured the purchase of a freehold development of 8 purpose built apartments below market value for £1,350,000 from the local council. With capital tied up in other developments he could not gain finance from his existing bank to purchase

We arranged an open bridging loan facility of £1,350,000 to purchase the flats outright, and allow our client to finish the flats to a high specification to be marketed. A remortgage was also arranged for £1,520,000 formed with two BTL lenders to repay the bridging loan while new leases were drawn up. This enabled each of the flats to be sold individually on the uplift in value.

Case Study: Purchase of a boat mooring in Spain

 We recently arranged a second charge bridging loan of £55,000 for our applicant who urgently needed non status finance to secure the purchase of a yacht mooring in southern Spain. Our client could not remortgage due to time constraints, the bridging loan was drawn down in just 10 working days from application. A re-mortgage was arranged to repay the bridging loan and refinance the home and car loan.

Case Study: Mortgage Arrears Credit Repair Bridging loan

 Credit Repair: A Self Employed applicant had 5 months current mortgage arrears on his own home due to compounding financial circumstances. There was no remortgage lender prepaired to refinance the property with current mortgage arrears. We arranged a non status bridging loan to repay the existing lender including the 5 months interest charges, and pay the bridging loan interest for the next 4 months. With the mortgage arrears cleared and with 3 months new mortgage history we were able to re-mortgage the clients property to an affordable mortgage product.

Bridging Glossary: Frequent terms used in bridging finance

 Arrangement Fee: The lender charge for arranging the loan or mortgage. Typically this amounts to 1% of the loan amount and is deducted from the loan advance on completion and drawdown of funds.

BMV: Below market value is a term often used with discounted property purchases

Closed Bridging Loan: Where there is a defined take out of the bridge where the solicitor can give undertaking to repay the bridging loan at the end of the term, such as a with remortgage funds, exchange of contracts on a property sale, or other contractual agreement guaranteeing the repayment of the loan on a defined date.

Daylight Bridging: A bridging loan typically arranged for 1 day to purchase a property while completing on a refinance to a term mortgage.

Discounted Purchase Price: Where the vendor offers the buyer a discount off the purchase price to guarantee a quick sale or other incentive. This may be from a family member or existing landlord, or builder developer discount.

Exit Route: the method by which the loan will be repaid at the end of the loan term, i.e. by remortgage funds, sale of a property, business contracts, other asset maturity where fund will be used to repay the bridge.

First Charge Bridging: A Bridging loan secured against the property by first legal charge.

Interest Deduction: Total interest payments for the bridging loan are subtracted from the total loan advance on completion. Many bridging lenders use this method of interest payment with non status bridging.

Interest paid monthly: Interest payments on the bridging loan are serviced by the borrower on a month by month basis.

Interest Roll Up: Interest payments on the loan are added onto the loan amount each month

Loan To Purchase Price: Expressed as a percentage of the loan amount to the contracted purchase price.

LTV: Loan to value expressed as a percentage of the loan amount to be borrowed to the professional valuation of the property

OMV: Open Market Value. The value of the property on the open market. 

Refinance Bridging: A Bridging loan used for the purpose of refinancing an existing mortgage facility for a short term for e.g. while extensive works are being carried out in the property or transferring the mortgage debt onto a bridging loan to clear mortgage arrears before refinancing to a new term mortgage lender.

Same Day Bridge: A bridging loan facility arranged for one day to enable completion of a property or other contract. Repayment funds must be guaranteed with a solicitors undertaking that redemption funds are available.

Second Charge Bridging: A bridging loan secured against the property by second legal charge in order that urgent funds may be released without changing the mortgage.
Take out: The proposed refinance or repayment of the bridging loan. Also see Exit Route.

Vendor gifted deposit: Typically where the property is being sold at below the market value creating an amount of 'free equity' in the property that the purchaser may use instead of using a cash deposit. Because a bridging loan can finance based on the market value (not purchase price as with a mortgage) the purchaser may finance upto 100% of the purchase price or more in some cases with lending based on a higher valuation.

Short term funding arranged on all property types:

Residential Property (Main Residence, BTL, HMO)

Residential Developments. Also see Development Loans

Commercial Property

Commercial Developments.  Also see Commercial Development Finance

Mixed use property

Offices

Buy to let Property and HMO Investment Property

Retail Units

Land with and without planning permission. Also see Planning Gain Finance

Investment property Purchases