Everything you need to know about securing a Bridging Loan
What are Bridging Loans?
At Amber Solutions we understand that in the fast paced worlds of business and property there is a need for strategic lending solutions, one such solution is a bridging loan. Mainstream lenders can often take a long time to approve loans and bridging loans offer a viable and speedy alternative.
Bridging loans are usually a short term funding solution used to complete a quick purchase or refinance an existing asset. It is used to ‘bridge’ the gap between a debt due and a credit owed. Amber Mortgage Solutions understands that the need for fast turnarounds is essential and our specialist team can utilise their network of lenders to find you the best deal.
Typical Examples of a Bridging or Development Loan would be to:
- Complete a chain and move prior to the sale of a current property
- A loan to purchase at Auction
- Or funds to purchase land or property that requires development
Who are Bridging Loans aimed at?
At Amber Mortgage Solutions we understand that every applicants needs and circumstances differ, and we use our experience to tailor your application to ensure that it reaches the most suitable lender for your needs. We work with our applicants and lenders to ensure both parties have peace of mind and the best deals can be made.
We can help you secure the right Bridging or Development Finance for your specific needs. The rate and type of loan offered will depend on a number of different factors such as your exit strategy, experience of previous projects and if applicable, the type of development planned.
We will work with you to demonstrate to the chosen lender a clear exit strategy which could range from the sale of a property or properties to a remortgage onto a more traditional term loan.
How much can I borrow?
Typically, gross loans are available to a maximum of 75% of the value of the subject property. However, if there is additional security available, it is possible to fund 100% of the purchase price.
As an example: If the property to be purchased is worth £200,000, the maximum gross loan available will be £150,000 minus the retained interest and fees. The loan will often be for a term of between 1 – 24 months, however, the borrower may be able to repay the loan early without an early repayment charge. This will be dependent on the agreed terms.
Secured Bridging Loans
When considering a bridging loan a lender will usually require collateral in the form of property, the loans for one property can be secured against the collateral of combined properties. The lender will secure the loan by taking a charge against the property, most likely in the form of a first or second charge. There are alternative collateral types that will be considered, however, residential property is the most common and preferred type for lenders.
Bridging Loan rates
The Bridging Loan rate offered will be determined by the lender on the following circumstances:
- The type of loan (open or closed)
- Loan-to-Value
- Size of loan required
- And the applicants circumstances and collateral available
Our expert bridging loan team can help guide you through the whole application process and ensure that the we find the best finance rates available.
Frequently asked questions
We have complied below a list of frequently asked questions to help guide you to your next bridging loan;
- What type of Commercial Finance is best for me?
- What’s the difference between an open and closed bridging loan?
- What is the duration of a bridging loan?
- What is a bridging loan?
- What can I use a bridging loan for?
- How much can I borrow?
If you need further information, please call our friendly team of bridging loan experts on 01702 619 221 who can guide you through the whole process from start to finish.
Why choose Amber Mortgage Solutions to secure your next Bridging Loan?
Amber Mortgage Solutions will ensure that you have a dedicated specialist assigned to your application, they will help explain the details of the loan and assist you with your application every step of the way. The will ensure that you understand the terms of the loan being offered and are aware of all fees incurred.
If you are interested in applying for a bridging loan or wish to discuss the services Amber Mortgage Solutions offer then call us today on 01702 619 221.
How We Work
- To start with please either call us or complete the above application form
- One of our specialist commericial finance consultants will be in touch with you to discuss your application
- After we have your details, we will approach our lenders for the best schemes to suit you
- We will then talk you through the details of your finance deal
- 100% Secure, Confidential and hassle free.