- 1 All you need to know about Bridging Loans
At Bridging Options, we provide a fast, friendly and professional approach to obtaining bridging loans. To find out just how much you are eligible to borrow, take a look at our easy to use bridge loans calculator and receive an instant, no obligation quote via your email or mobile.
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Please note that whilst this bridging loan calculator can provide you with a detailed guide to interest rate charges and all other costs associated with bridging loans, it should be used for estimation purposes only. This calculator is based on our most popular loan plans and makes a number of assumptions based on your personal details. For an accurate and bespoke bridging loan quote, please contact us at Bridging Options today.
All you need to know about Bridging Loans
If you are looking for short term finance to purchase a property, then a bridging loan could provide you with the perfect solution.
A bridge loan is an interim loan in which the equity from your residential or commercial property is used as collateral for the down payment towards a loan on another property.
The process for securing a bridging loan is simple and straightforward, providing you meet the lending criteria. Below we explain how our bridging loans work and what you need to do to qualify.
Our bridging loan plans are open to individuals, partnerships and limited companies. To investigate your bridging loan options, you will need to provide us with a number of details. This includes the net amount you wish to borrow, the term and length of the loan and information on your deposit, security and exit strategy. In return we can offer you the following:
- Loans from £xx,xxx to £xx,xxx
- Terms from little as x weeks to xx months
- Great value interest rates
At Bridging Options, we specialise in arranging bridging finance whatever your age and do not require any proof of income.
In order to qualify for one of our bridging loans, we do need to ensure that you have sufficient security and will need to undertake a property valuation before terms are agreed. We may also wish to review your previous credit history (often undertaken on a case by case basis).
Bridging loans explained
Below are some of the most frequently asked questions we get asked with regards to working out your bridging loan options.
What is Loan to Value?
The interest rate you will pay for our bridging loan facility will be typically based on the loan to value (LTV). This is the same as a taking out a standard mortgage.
The LTV rate is calculated by taking the size of the loan you require and dividing it by the price of the property you are using to secure the bridging loan. For example, if you take a loan of £200,000 which is secured against a property worth £400,000, then you have an LTV of 50%.
At Bridging Options, we consider the LTV based on what you either paid for the property or on its current market value and have surveyors on hand to value your property.
In some instances, we can even offer bridging loans based on the gross development value, which looks at what your property will be worth once you’ve completed any planned projects. This is a particularly popular option for new build schemes and property developers. If this type of Bridge loan is of interest, then please contact us directly for full details.
What are the interest options?
The rate of interest we charge for your bridge loan is typically charged in one of three ways:
- Monthly – interest is paid each month and therefore not added to the balance of the loan.
- Rolled-up – interest is accumulated each month and paid at the end of the term, when the original loan is repaid.
- Retained – the cost of the interest owed is also borrowed as part of the original bridge loan. This total amount is then repaid at the end of the agreed term.
*It is important to note that failure to repay your costs on time, may result in a penalty or your property being repossessed.
If you are interest in one of our payment plans, please contact us to discuss which one will work best for you.
What interest rates are available?
In general, the lower the LTV, the better the interest rates we can offer.
Other factors that may affect the amount of interest you pay include the property location, property type (residential, commercial, semi-commercial, land etc.) and the number of properties you are using as security.
Our bridging loan rates typically range from between 0.xx%-xx%,
Are there any additional fees?
At Bridging Options, each bridging loan application is dealt with on a case by case basis so any additional fees will be variable, depending on the terms negotiated.
Types of additional costs include arrangement, exit, legal, valuation and administration fees. For full information on extra charges you can expect to pay, read our informative guide on how much do bridging loans cost.
How quickly can a bridge loan be arranged?
Our bridging loans can be arranged quickly, often within days; however, due diligence needs to be applied before funds are released. For this reason, we recommend factoring in at least a couple of weeks to complete the process.
Why choose Bridging Options?
At Bridging Options, we help our clients get the most competitive interest rates for their bridging finance. Through our extensive experience and understanding of the industry we are able to offer flexible loans and rates, alongside a service that is second to none. Please use our bridging loan calculator to provide you with an approximate guide to illustrate the rates we offer.
To obtain a personalised quotation, please contact our bridging loan experts or submit a bridging loan enquiry today and we will get back to you as soon as possible with a free, no obligation estimate.