Bridging & Short Term Loans
Bridging & Short Term Loans / Mortgages
Our criteria for lending is clear and straightforward:
- The property must be based in the UK
- The bridging loan must be the first charge on the property
- Competitive interest rates are available
- Loan terms are available from one day to 12 months
- The minimum loan size is £15,000 and the maximum is £25,000,000
- There are up-front processing fees
- Loans will only be made to individuals or Corporate Limited Companies
- The maximum gros loan-to-value ratio is upto 65% for commercial, and 70% for residential, including closed bridging loans (contact BWG to find out if open or closed loans are more appropriate for you)
- Given certain criteria, such as additional security, we will consider loans of up to 100% of the value of the primary secured property
- We can lend against market value regardless of the purchase price of a property
- We can lend on development sites with outline planning permission or proven zoning agreement.
- Both closed and open bridging loans and mortgages available.
You can rely on BWG to deal with your case quickly and efficiently and deliver short-term property loans that solve the financing requirements of all types of residential and commercial property transactions.
Bridging loans for specific projects:
Auction Purchase Finance
Time can often be tight when it comes to a property purchase at auction, and speed is the main advantage bridging finance can offer compared with high street banks. Independent buyers looking for a bargain at auction are turning to bridging loans to meet the 28-day deadline for completion set by all auction houses in the UK. A 10% deposit of the bid price will be required for auction day itself, and if you don't have the sum, BWG can help to raise the funds by releasing equity on any existing properties prior to the auction. Once you own the property, you can then remortgage in order to repay the bridging loan.
We know that many of our clients are seeking 100% of the auction property bid-price plus renovation costs, and BWG can achieve this by using a combination of both the new auction house and your existing house as security (subject to equity).
Land, Planning and Bridging Finance
Bridging loans are an excellent way to help investors, developers, private builders or self- build projects move quickly once a site has been identified with planning permission or planning potential is in place. So, if your bank is unable to provide funding because the property is not producing any rental income or is just too speculative, in some circumstances or with additional security, BWG can achieve 100% of the market value. Alternatively, if you're able to purchase vacant premises and, following completion, want to submit a planning application, a bridging loan could be the ideal solution.
We are specialists in recognising the potential of development sites, so are able to structure short-term loans to finance acquisitions pending a change in planning permission. And once the value of the site has been increased by planning permission being granted, we can help you re-finance the site, or else you could either complete the development or sell it.
Residential (Regulated Bridging Finance)
Residential bridging loans are most commonly used when you're looking to purchase another property whilst your existing one is being sold. They can also be used to release equity quickly for debt consolidation or business injection, or else to purchase investment properties or complete home improvements.
High street lenders generally work off the discounted purchase price when assessing the amount they are prepared to advance to you, whereas we always work off the market value of the property, which is particularly good news when you're purchasing at a discounted price or a price under the market value of the property.
Of course residential bridging loans are also ideal for self-build clients. How often do budgets spiral out of control, or funds have to be reallocated to unscheduled works? In many cases this can mean that money runs low just when it comes to the installation of major items such as kitchens and bathrooms, and this is not great news when it comes to approaching traditional lenders for more. Why? Well many won't release funds against a property until they consider it to be ‘habitable', but BWG can find the perfect residential bridging loan to allow you to complete the project.
Commercial (Short Term Briding Business Finance)
If you're self-employed and looking to purchase new premises or raise funds to inject into your business, but don't fit with the traditional lenders' criteria, then a commercial bridging loan could be perfect for you. We understand that time is of the essence, and with bridging loans you can expect a quick application process, quick decision, and funds released...quickly!
65% of the market value can be raised if the commercial property has planning permission to be converted into residential usage, such as an office building converted into apartments for example. In certain circumstances, or with additional security, up to 100% of the market value can be achieved.
Commercial bridging loans can also be used to release equity for debt consolidation or business injection, or else to purchase investment properties or make home improvements.
