Bridging Loans

Also read: The Underwriting Process

Bridging loans can be easily and quickly arranged on a completely ‘non status’ basis, i.e. accounts not required, no proof of income required, any CCJ’S/ defaults.

• Residential property; Up to 80% of market value. Rate 2% per month, Any purpose.
• Commercial property. Up to 70% of forced sale value. Rate 2% per month. Any purpose.

If a required loan is less than the maximum stated above, then there may be better terms available.

Example of Refinancing a Bridging Loan
A well known Yorkshire based manufacturing company took out a bridging loan to fund the following scenario:

• This business was losing money and the clearing bankers wanted their overdraft back!
• The company needed to be made smaller and to move to another location in order to continue.
• The company owned a 2 acre site which had old factory buildings on it.
• Residential sites surrounded the factory site the client then got outlined planning permission for ‘residential ‘which then increased the value of the site to a huge £2 million.

The client arranged a six months bridging loan of £900,000 and a 1% arrangement fee. This then paid the clearing bank and the client some much needed space while it considered what to do - whether to:

• Selling to a National House builder.
• Do a cooperative project with a Property Developer.

The bridging loan is getting near its maturity and will and it needs to be renewed. Rather than renew with the current lender Sterling have arranged to finance the bridging through a specialist funder.

The following terms where acquired:

• The base rate plus margin 3%
• Interest roll up.
• Arrangement fees 1%.

At the end of the 6 months loan term agreement the client will have finalized the plans for the site and will have saved in excess of £50,000 in interest.

Whats your next step:

You can either use our online enquiry form or
contact us direct for immediate human contact on 0800 0735353.
You are under no obligation and you pay no fees until the commercial finance product is arranged.