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We get many enquiries where short term funding is required, and usually in a hurry, is that something that is important to you and your business at the moment?
Bridging Finance is often the solution, it is where a specialist lender advances a short term loan against property until such time as the property can be sold or refinanced over a longer term with a conventional lender. The commonest areas where Bridging is the ideal solution are:
- Where a property is being purchased at Below Market Value (BMV), it is possible to fund the property based on the current market value as opposed to the purchase price, with the client often buying the property with little or no money down.
- When the value of the property can be improved by changing its planning category, undertaking refurbishments or indeed obtaining planning consents where none existed before.
- Buying a property at auction where the timescale to complete the purchase and not forfeit the 10% deposit requires a lender who can act fast. Very few conventional lenders will ever achieve this.
- Credit repair, where perhaps an existing lender is pushing for repayment or indeed it has passed beyond that stage and the property may be about to be repossessed.
- Immediate cash to inject into your business
As a general guideline, because we have access to a multitude of lenders in this sector the following outline terms can be arranged:
- Borrowing from £30,000 up to £25m
- 100% funding can be arranged if collateral property security is available
- Normal terms up to 6 months with some lenders allowing up to 24
- Short term back to back facilities on buy to let properties
- Interest often rolled up into the loan or deducted at completion, requiring no monthly repayments
- Rates from as little as 0.75% per month, but typically from about 1.25%
- Non status lending - the lender looks at your property not you or your background
- Fast completions, with some lenders promising same day, but most within 10-14 days
- Open and Closed Bridging available at up to 75% LTV dependent on property type
From our point of view, we are geared up to help by arranging the long term competitive funding required by Bridging Financiers to "Exit" their short term facility. To find out more click on the Contact Us button above or by clicking here to visit our contact page and find out how we can help.
Please note that CFA only handle unregulated Bridging enquiries on properties that do not represent the applicants principal residence, the latter being regulated by the FSA (Financial Services Authority).
If your enquiry relates to your own home we are happy, at your request, to pass your details onto a suitably regulated organisation with whom we partner for this type of lending.
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