A bit about the process of arranging a bridging loan
If you are thinking about taking out a bridging loan you can always give us a call for any information about bridging facilities that we have or other options that you may have available.
Bridging loans have their uses, but quite often there are other options available that could provide a better solution, not just when considering cost but also for speed, convenience and peace of mind. These other options could include taking out a buy to let mortgage, which can be done within two weeks using our express facilities, arranging an asset refinancing facility which can be completed within a few of days, or having a commercial mortgage or remortgage. Rather than using these long term facilities to refinance a bridging loan, wherever possible it is best to skip the bridging altogether.
For times when bridging finance is the best option all you have to do is make an application with ourselves. We will need to know how much you would like to borrow and will also require an indication about for how long and if interest roll up is required. Other information we will require are details about the security property, for example what type of property it is, its condition, approximate value and details about any other charges that maybe secured on it. If there is not enough security available in one property then more properties can be included if they are available.
Following your application we will look to see which bridging lenders are likely to offer the best deal for the bridging loan that you require. We will then provide you with the loan information which will include details about the arrangement fees, the monthly rate of interest, the term of the loan, any other fees and costs, and other relevant information.
Once you are happy with the terms we will aim to get an acceptance subject to valuation. Once this has been achieved a valuation will need to be carried out on the security property or properties. Having completed successful valuations the lender will be ready to make a final offer and be ready to release funds when they are requested.
Once the loan has been paid out it is important to remember to pay the monthly interest payments on time, unless you have arranged to have an interest roll up facility. It is also important to remember that the loan needs to be repaid at the end of the agreed loan period or sometime before this date. Repaying the loan before the end of the term will save interest charges so always a good idea if this can be achieved.
If there are any problems, particularly with the planned exit strategy it is important to contact either ourselves or the lender to look at available options.