Bridging finance is used to purchase property but is short term by nature of the fact that there is usually a mechanism or offer of alternative finance to repay the bridging loan within a defined period of normally no more that 12 months.
Typical cases are where a high street funding institution has agreed a package of facilities but completion of the deal is required before they are ready to draw down their loans. This is known as a closed bridge as there is a definite take out route at point on entry into the bridge.
Other cases are where there is no agreed exit route for the bridging finance but there is sound business case for the transaction to proceed. This is known as an open bridge and is inherently higher risk and therefore more expensive in terms of pricing.
We can normally arrange the following:-
- up to 80% of purchase price or valuation for a closed bridge
- up to 70% of purchase price or valuation for an open bridge
- interest rates are generally circa 1.50% - 2.00% per month
- arrangement fees are usually circa 1.00% or more
- maximum terms are generally no more than 12 months
- minimum terms are generally 1 month
- deals can be arranged very quickly, normally within 7 days
- panel valuation firms and solicitors practices speed up the transaction
- simple application process
We are here to help so give us a call, send a fax or e-mail or submit an online enquiry. |