What is a bridging loan?
They are primarily used as short term lending where property is concerned to bridge a gap between a debt becoming due and the main line of credit becoming available. terms generally range from 1 month to 3 years but periods of 6-12 months are the most common. Because this is short term finance bridging loans are more expensive than conventional mortgages with higher interest rates typically from 0.75% a month upwards and 1 or 2% entry and exit fees.
They are useful for auction purchases where deadlines are tight as well as when buying a property that needs considerable work to bring it up to a standard where a conventional mortgage could be raised on it. It is important to have a clear idea of costs and margins as well as a time scale and exit strategy. Your adviser and lender will play a key role in this respect. Bridging is not always suitable and not all purchases are viable. Speak to a property finance specialist adviser today…
Who will benefit from a bridging loan?
Anyone who has a short timescale to complete on a purchase that would otherwise not be possible or if value is going to be added to a purchase as such that the property could be sold or refinanced to a mainstream lender at true market value on completion of the works. Numbers and timescales need to be pretty accurate here or something that looks like having great potential can turn out to be a nightmare. Lenders will take the property as security and interest can be rolled up for up to 12 months or paid monthly. Due to the nature of compounding the cost of exiting the bridge needs to be calculated in the sums.
What we offer
- Terms from 1 month to 3 years
- 1st and 2nd charge loans from £50,000 to £20,000,000 +
- Residential and Commercial re financing
Why choose Fortuna for your bridging loan?
We source from the Whole of Market (independent) so we can deliver the finance that you need quickly and as cost effectively as possible. We are independent financial advisers and we will match your needs with the most competitive financing available in order to enable you to complete on a purchase or development quickly and with confidence.
We are independent financial advisers and we have a wealth of experience in financial planning as well as property portfolios. We can help with the financing requirements of optimising and running your portfolio. We will therefore objectively work with you in order to secure the best options available to your current situation.
What to do now:
Fill in the form and you will be contacted by an adviser to discuss your needs and ideas. This will give you the confidence of providing all the relevant information in order to secure the most suitable product for your needs at the best rate.
Fill in the form and an adviser will contact you to discuss your ideas with us. In this way you can be confident that all the relevant information will be obtained in order to get you the best offer and the correct bridging product or financing.
You will be dealing with local independent brokers that specialise in property
Call now – We take calls outside of office hours and on weekends 01992 503 410.