A fast bridging loan can provide funds with the minimum of fuss, enabling you to complete a property purchase whilst other lenders are still considering your application. This can save you time and money (no lost deposits because you didn’t complete within the required timescale). It will give you the time to arrange long term finance at competitive rates.
Loans are available up to 85% of the market value of the property. This may reduce the amount of deposit you require if you have been able to agree a purchase price below market value. In some cases it is possible to fund 100% of the purchase price subject to negotiation, and especially if additional security is available.
Terms are typically between one and twelve months, with no early settlement penalties. Loans can sometimes be extended beyond this term. Monthly repayments of interest only are required, but these may be added to the loan if the outstanding balance stays within the maximum loan to value criteria. The rolled up interest would then be repaid when the outstanding capital was cleared by the sale or refinancing of the property.
An arrangement fee may be charged based on a percentage of the total facility. This may be added to the advance at drawdown, so long as the facility keeps within the agreed loan to value criteria. In certain, but not all cases an exit fee will be charged, again, based on a percentage of the advance. All fees would be notified and agreed in advance.
For further information or to discuss the options available contact us here at GR8 Business Finance on 01704 514514, or send a message via the Contact Us page giving your full name and a daytime contact number.
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