Bridging loans are short term solutions for individual until a more permanent or next stage of financing can be arranged. This is then used to repay (often known as exiting) the bridge loan.
Before securing a bridge loan you need to carefully consider your future plans and be sure there is a suitable and plausible exit route available. This type of borrowing is generally only based on a 3, 6, 9 or 12 month period so its important to look past the initial bridge.
We would always consider the route of borrowing through a standard mortgage and look at options for mortgages, remortgages and further advances before considering a bridge loan for a client.
Exit strategies for a bridge loan could include sale of the security property, refinance to a normal mortgage product, sale of another asset or funds from many other sources as overall the bridge provider’s main focus is that the exit is a feasible one.
Bridging loan interest rates are typically monthly rates (as opposed to annually calculated rate on long term finance such as a mortgage or loan) and vary depending various factors.
Maybe you have a great opportunity to buy a property to refurnish but can’t arrange a mortgage due it’s conditions or have a property you need to purchase before your deposit is released from your own property sale ... Give us a call and let’s see if a bridge loan can help ‘bridge’ your short term needs
'Open' or 'closed' bridge loans
An Closed Bridge Loan is commonly used when a buyer has found a property already and exchanged on he sale of their existing property. However an Open Bridge Loan is commonly taken out by a buyer who has found their ideal property but may not have put their existing home on the market yet / have any offers on their property yet. This can often be considered higher risk and have a higher rate of interest in place
Here at Roberts McBain Mortgage & Finance Ltd we have the advantage of being regulated by the Financial Conduct Authority and can arrange Regulated and non-regulated bridge finance. This is a specialised area of lending and we have routes to some of the most credible, well established and competitive bridge providers in the UK.
Remember - A bridge loan is likely to be more expensive for every pound borrowed, compared to loans that are taken out over longer terms so making sure this is the right option and that there is an obtainable, feasible exit (way of repaying the loan) can be put into place is essential.
A MORTGAGE IS A LOAN SECURED AGAINST YOUR HOME OR PROPERTY. YOUR HOME OR PROPERTY MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE OR ANY OTHER DEBT SECURED ON IT
THE FINANCIAL CONDUCT AUTHORITY DOES NOT REGULATE MOST FORMS OF BRIDGING FINANCE
Roberts McBain Mortgage & Finance Ltd is an appointed representative of TenetLime Limited, which is authorised and regulated by the Financial Conduct Authority. TenetLime Limited is entered on the Financial Services Register (www.fca.org.uk/register) under reference 311266.
Roberts McBain Mortgage & Finance Ltd is registered in England & Wales under registration number 10215985. Registered address: 96A Water Lane, Wilmslow, Cheshire, SK9 5BB. Telephone Contact :0330 113 3311
The information contained within this website is subject to the UK regulatory regime and is therefore primarily targeted at consumers based in the UK.