Bridging finance for those over 70 is a variety of secured loans that can be used for elderly citizens who wish to modify their living arrangements in multiple ways. The good news is that securing bridging finance if you are over 70 is not impossible, because like everyone else, it all depends on your unique circumstances and eligibility.
To qualify for bridging loans for those over 70, the loan to value bridging loan rates will depend upon the property or asset used to secure a bridge loan. Senior citizens have special criteria that are not readily available to others, and the loan amount ranges from a few thousand up to £25million.
Are you over 70 and in need of a bridging loan? Perhaps you are curious if a bridge loan can be used to help aid with expenses for moving into a care facility? Whatever your reason, we are here to help you with any questions you may have.
Below we explain all there is to know about over 70 bridging loans, and how Bridging Options can put you in touch with the right bridging loan lenders.
What can a bridging loan for over 70s be used for?
As mentioned, there can be a multitude of different reasons that you may need a bridging loan when you are past 70. After all, you are now retired, your children are living their best lives independently, and you likely want to enjoy life now with as few responsibilities as possible.
Or, the reverse can also be true! Perhaps you are wanting to finally make the leap and purchase your dream home. With your career and its responsibilities long behind you, now is the time to live life to the fullest in a home that you have always wanted.
Let’s take a look at some of the most common uses for a bridge loan for those over 70.
Residential purchase
When you secure a bridging loan against your current home and property portfolio, you can quickly gain access to the funding needed to move into a new home.
Bridge loans for house purchase can be perfect if you have an excess of equity in your current home or property, but you do not have access to these funds to do what it is you have always wanted to do. With this in mind, bridging loans are a perfect idea for your age range.
Bridging lenders can move rapidly in this circumstance to get a secured loan into your hands quickly, long before the property sale of your current home.
Downsizing
One of the most common examples in the bridging loan market for those over 70 is downsizing. When we reach our 70s and are a few years into retirement, it is completely natural to want to downsize your assets for something more concise and manageable.
In this case, a closed bridging loan may be a good option since this would allow you to secure funding for your new, smaller home while you wait for your previous home to sell.
It is a good idea to think carefully before securing closed bridging loans, which is why our team of advisors are on hand to answer all your questions and concerns when you contact us.
Development and refurbishment
For residential properties, arranging bridging finance is a great way to secure funds for new development projects you may wish to undertake and even refurbishments you would like to finally get around to completing.
If you wish to relocate during these developments, unregulated bridging loans are typically the most utilised type of bridging loans for property developers. If you wish to stay put during additions or renovations, you can easily apply for regulated bridging loans.
Developments and refurbishments are also possible if you have an outstanding mortgage in place or other debts, bad credits, or open files with a credit broker.
Buying property abroad
UK lenders can also grant bridging loans if you wish to purchase a property abroad. Bridge loans are perfect for this, since this gives you the funds needed to move quickly on securing a property abroad.
Bridging loans can be used to secure the deposit, pay off a balance, or even pay the full price for the property abroad outright, depending on what you qualify for.
Care home relocation
If you need to move into an assisted care home, securing the funds to pay the entry fees and future monthly payments while you wait for your current home to sell can be a tricky proposition, especially while balancing monthly repayments on your mortgage.
Bridging lenders can offer bridging loans that can secure the initial move-in funds to the facility, and up to 12-18 months of monthly payments. The eventual sale of your residential property will release equity that will cover the fixed repayment date.
Furthermore, using open bridging loans is typically a good option when you are needing to undertake an urgent transaction such as moving into a care facility. An open bridging loan has no specific end date, which means you can pay valuation fees, exit fees, and secure the funds you need while your property finance arrangements are settling.
An open loan also means that you do not need to come up with an ironclad exit strategy as of yet, which is convenient.
Bridging loan types for over 70s
As mentioned, there are two primary types of bridging loans: open and closed. Let’s take a more in-depth look at both types to find out which is best for you.
Closed
The closed type of loan requires you to have a set date for repayment at the outset. This means that you have a credible payment plan and can inform your lender of your exit strategy. This may involve the sale of a property or the securement of longer-term finance.
This type of bridge loan carries less risk for the lender, and therefore, tends to be offered with better rates of interest. Closed loans are usually settled within a couple of months.
Open
An open loan can be taken without a specific end date or an exit strategy in place. This type of bridging loan is much more flexible, often with open ended repayment terms and is commonly used to obtain funds for urgent transactions.
This type of bridge loan carries significant risk to the lender and for this reason, the rates for an open loan, inherently tend to be higher.
Who is eligible to apply for the bridging loan?
The Financial Conduct Authority (FCA) regulates the general eligibility details suggested for bridge finance. But whether you are seeking a new property or need to borrow money for arrangement fees for an assisted care facility, the best bridging loans available will typically require two things: your asset to secure the loan – typically your home – and a firm exit strategy put in place.
Let’s take a closer look at the eligibility details and also what you can expect from the application process.
General eligibility criteria
When you apply online or in-person, lenders will generally start by looking at your credit score through a credit crunch comparison tool matched to your home’s property value. How much equity your residential or commercial property has, will be a big indicator when determining your maximum loan.
Many applicants wonder how much can I borrow? The answer is going to be calculated from a wide range of factors. You may be required to have proof of a previous property to put up as collateral, to prove you are able to pay the loan back.
If you are using bridging for another reason, then again, evidence will need to be in place to show a future option of repayment, even in an open loan option.
Mainstream lenders differ from bridge regulated lenders in that your current income is not typically part of the requirements – everything comes down to your assets and collateral in order to transfer funds.
Sufficient equity
Unless you have something like an investment property to use for collateral, your home will need to have acceptable equity.
Bad credit or other types of debt
If you have bad credit or other debt, adverse credit history does not immediately bar you from receiving a bridge loan. Most lenders will assess your entire application and weigh your metrics in other eligibility categories against the adverse credit evidence.
How long will the bridging finance application process take?
You will typically hear back from someone within 24 hours after filling out your application. The entire process from start to finish, if a lender wishes to move forward, should be just a few weeks.
Using a bridging loan calculator is a great way to determine if you qualify and a general overview of what you can expect in terms of a loan amount. You should also be prepared for broker fees, legal costs, and a valuation fee if necessary.
What happens if I die while having a bridging loan?
In the event of your death, all of the matters revolving around your bridge loan will be handled by probate. If there is a mortgage in place, that will take first priority upon the settlement of your property, and then short term finance, and any applicable legal fees can be settled afterwards.
In the event that you have family members sign the loan on your behalf or for you in a special type of bridge loan for the elderly, those family members could become responsible for the loan.
FAQs
Why choose Bridging Options for your over 70s debt secured bridge loan?
At Bridging Options, we make it our mission to provide a bespoke service to all those who need assistance with something like bridging finance. Our team of professionals are well-versed in all matters of finance, with bridging finance being one of our specialties.
If you are over 70 and in need of a bridging loan, contact us today by phone at 03300 562173 or by filling out this quick contact form.