Bridging loans for first time buyers

When you are contemplating the purchase of your first home, it may seem like you have no options but to go through mortgage brokers. You may be asking yourself if first time investors can get bridging finance, and you will be pleased to know that this is possible.

With anything concerning finance, experience is massively important. But if you do not have any experience to show lenders, or are a first time buyer, you can use any previous experience with properties of any variety to show as experience to bridging finance lenders.

Having some variety of experience helps to give bridging loan lenders comfort when you seek to borrow money because it helps if you’ve got something there as a buffer if something should go wrong.

Bridging loans can often be a complex form of finance, which is why we are here to help give you advice and a broad overview of the process in your introduction to how bridging loans work. And, when you are ready, and if you think a bridge loan might be right for you, then contact us and we will be happy to discuss your needs and answer all of your questions.

What are first time buyer bridging loans?

A bridging loan for a first time buyer is not as intimidating as the process may be with mortgage lenders, but there are some key details to be aware of.

A first time buyer bridging loan is a type of short term finance to purchase a property in lieu of a mortgage.

A bridge loan is an interim loan only, in which the equity from your residential or commercial property, experience assessment, or acceptable buffer is provided as security.

The process for securing a bridging loan is simple and straightforward, providing you meet the lending criteria (more on this below).

What types of bridging loans are available to first time buyers?

Practically any type of bridging loan is available to a first time buyer. This is all based on your evaluation and your experience, which is then assessed by the lenders who will evaluate how strong your application is.

First time buyer bridging loan criteria?

Bridging loan criteria, no matter the type or circumstance, is always going to be varied and different depending on the company you choose.

Valuation fees, deciding between an open bridge loan or a more common closed bridge loan, the difference between a first charge bridging loan or a second charge loan, etc,-all of these particulars are based entirely on your experience and will need to be evaluated for first time buyers.

Our bridging loan plans are open to first time buying 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 in a range of value depending on your requirements
Manageable and competitive loan terms
Great value interest rates

At Bridging Options, we specialise in arranging bridging finance whatever your age, and do not require any proof of income. We do not automatically deny individuals for lack of experience or bad credit, instead we like to provide a fair and honest assessment to see if there is something we can work out together.

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).

How much can a first time buyer borrow on a bridging loan?

Loan sizes

For a first time buyer, the bridging loan sizes may be considerably smaller depending on your experience. 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 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. 

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. 

Interest rates

The rate of interest we charge for your bridge loan is typically charged in one of three ways:

By the Month

For this option, the interest is paid each month and therefore not added to the balance of the loan, which can cause higher interest rates.

Combined 

For this option, the interest is accumulated each month and paid at the end of the term, when the original loan is repaid.

Retained 

For this option, 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 to avoid high interest rates.

It is important to note that failure to repay your costs on time, may result in a penalty or your property being repossessed.

First time buyer’s calculator

One of the best features to consider before you speak to an appointed representative or begin the application process is to put your information into a first time buyer’s bridge loan calculator.

Take a look at our bridging loan calculator.

How to get a first time buyer bridging loan?

These are the 5 steps to get a bridging loan as a first time buyer:

  • Step 1: Provide proof of residence and ID
  • Step 2: Ensure that you have proof of stable, steady income
  • Step 3: Use a bridge loan calculator and then ensure you have the minimum deposit
  • Step 4: Be prepared to show proof of all your experience in existing property
  • Step 5: Make sure you have a fully-developed exit strategy

FAQs:

Why first time buyers should choose Bridging Options for Bridging finance

At Bridging Options, we know how important it is to secure financial services when you are just starting out in the short term loan process.

Bridging loans are a mainstream and common tool that you can use to ensure that you can secure funds to assist you in purchasing your first home as a first time buyer.

Our bridging loan choices are authorised and regulated by the Financial Conduct Authority to ensure borrowing integrity.

We regularly help clients when it comes to bridging finance loan options, and strive to find ways to help those facing the prospect of securing financial services with affordable fees and the lowest monthly interest payments possible.

For more information on the right bridging loan to choose if you are a first time buyer, rates and monthly repayments in several options, including fixed repayment date, and how open, new secured loans can help you, even with no experience , contact us for an informal chat and a free, no obligation quote.

Experts in bridging loans for first time buyers, our friendly financial specialists are available for you to call or contact online today for expert advice when buying property.

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