During 2018, residential bridge loan lenders approved an impressive £3.98bn in bridging loans. This was reported by the Association of Short Term Lending (ASTL). This is 21 percent more than was lent on the same terms in 2017.
This is an interesting situation. It was thought that Brexit and the uncertainty around it was going to slow the housing market, but with this amount of lending there seems to be little slowing, and in fact things seem to be growing.
Since bridging loans are short term loans that are meant to literally bridge the gap between the main line of credit and the debt that is needed to secure a property, for example, the fact that more bridging loans have been secured in the last 12 months than ever before means that more properties are being bought. However, many of these properties are going to be ones that need to be completely refurbished and renovated; a standard mortgage may not be available until this happens.
Bridging loans are designed initially to help people complete the purchase of a property before they sell their existing home – the money they would gain from that sale is borrowed instead, and paid back once the house is sold. However, they are increasingly being used to borrow money to purchase a property that a high street lender would not consider.
Residential bridge loan lenders can be the difference between obtaining a property or not, and so it is no wonder that many people have seen the benefits of using them. They can take the place of traditional lending, and can be the ideal way to buy and sell, making profit, or turn a property into luxury rental accommodation. If you feel that a bridging loan is something that would benefit you, it is wise to do as much research as possible. There are many different options available, and it will depend on what you need and how you can pay the money back as to what you might be able to obtain.
Bridging Loan Rates
Our bridging loan rates start from:0.65% pcm up to 60% ltv (1st Charge)
Residential & Commercial Bridging
Bridging Finance 4U are master brokers and packagers for all the leading bridging lenders and private funders in the UK.
Who We Are and What We Do
Bridging Finance in London, UK is usually used as an interim financing measure until permanent or ‘next stage’ financing is obtained. For example, the sale of an existing residential property may take longer than the required purchase deadline of a new property, bridging finance could therefore be used to bridge the period of time until your existing property is sold, at which point you may have the funds to pay off the bridging loan in full with the property sale proceeds or to use as a deposit to complete on a standard mortgage.
We can also offer finance for both Republic of Ireland and Northern Ireland. In some cases finance can be also obtained for prime locations in Europe for UK nationals whether living in the UK or overseas as an expat.
Why Choose Us?
Standard terms vary from lender to lender, but in general bridging finance is usually available for a period of between 1 and 24 months. It is sometimes possible to agree an extension beyond 24 months in some circumstances, but generally speaking bridging loans are meant as a short term financing measure, lasting months not a few years.
Instead of going to every lender on the market, just come to us, we do all the hard work for you. We have relationships with all the major lenders and private funders and speak directly to decision makers. Funds can be normally released between 3 and 10 days subject to legals.
We can usually obtain terms immediately and formal offers subject to valuation within 2 hours. If you are looking for speed and service then you have found the right company. Rates from 0.65% pcm but see our rates page for more info. We can also now lend on the value of Freeholds.
(Tailors property services)