Why Choose Ascot Mortgages
Written by:
Phil Greenwood
Ascot Bridging Expert
Last Updated:
16.12.2022
A bridging loan is a short-term financial solution designed to cover immediate funding needs while awaiting long-term financing or the sale of an asset. Typically used for periods ranging from a few weeks to 24 months, these loans are tailored for quick access to funds, often within days. Bridging loans are popular among property investors, homebuyers, and developers who need to secure opportunities or resolve cash flow issues quickly. They are commonly used for downsizing in retirement, buying properties at auction, purchase and renovation of properties for ‘flipping’ and preventing a breakdown of a property chain.
The main advantages of a bridging loan:
Bridging loans are suitable for individuals or businesses in various situations and can mean the difference in not losing out on your dream home or investment opportunity. It allows you to act and move quickly in the property market and decrease the risk of losing out to cash buyers. Typical scenarios when bridging finance is used:
Whilst we generally deal with bridging loans up to £25m there are lenders willing to lend up to £100m, the loan to value to typically capped at 80% of the properties value being used as security. Each lender has their own policy and criteria in relation to maximum loans and loan to values so seeking professional advice from an adviser who understands this market and will assess your individual circumstances to present the best option available to you is crucial.
Each lender has its own set of lending criteria a borrower needs to meet to be considered for a loan, some lenders focus on the lower value and lower risk type lending whilst there are others specialise in niche areas of the market. There are 2 main elements to consider before applying:
The lender will require a form of security, this can be one or more properties
A well thought through exit/repayment of the loan is needed, in the majority of cases this will be sale of the property or refinance to a traditional mortgage
Bridging loans can be applied and setup for private individuals, Limited Companies, Partnerships and Offshore Companies. If you have any questions about your eligibility or feel your circumstances are complex, then speak to one of our advisers.
We have experts in our team that arrange and secure bridging finance everyday, we have arranged finance for relatively small amounts to assist with a quick refurbishment and sale all the way up to multi-million pound developments. We can meet tight deadlines or find finance for complex situations, whatever your situation call our team on 01925 711558 or book an appointment to speak to one of our professional advisers.
Get things moving, apply for a bridging loan.
Free unbiased bridging loan advice is just a phone call away.
Bridging loans typically range from £25,000 to £25 million, depending on your requirements and the value of the property being used as security.
Rates vary based on the property type, exit strategy, loan to value, and lender. Rates are typically between 0.5% and 2% per month.
Most lenders require equity in the form of property as security, but specific deposit requirements depend on the lender.
Bridging loans typically last between 1 and 18 months, with flexible repayment terms.
Yes! Bridging finance often focuses on the value of the security property rather than your credit score.
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