The ABC of Bridging Loans
Fair, flexible and tailored for you – these are the sorts of loans we provide. But before we get started on yours, you might have one or two questions…
What is a bridging loan?
It’s the quick capital that helps you take advantage of investment or development opportunities when finance from ‘traditional’ sources would take much longer to arrange.
Why would I need a property bridging loan?
Your heart’s set on a new home or investment, and the price is agreed. The only problem is that you’re stuck in a chain and things don’t appear to be moving very quickly. Bridging loan providers like ABC can help unblock the process, giving you the money you need now, without having to wait for your sale to go through.
Alternatively, you’re a commercial developer with an opportunity that’s too good to miss. Or a developer who stands to make a healthy profit on the sale of the property – if s/he can overcome the cashflow problems inherent with property development. Short term property loans are ideal for tackling all of these.
Who do you provide bridging loans to?
Individuals, UK companies, partnerships, LLPs and some offshore borrowing entities: if you’re buying or developing residential property, an office building, retail or industrial units, we’ll consider lending to you.
How long is bridging finance taken out for?
Our fast bridging loans are designed to be fast in terms of set-up time, and fast in terms of their duration. No bridging loan is designed to be a long term arrangement – ours typically last 3-36 months.
Are these loans secured or unsecured?
Our quick bridging loans are secured against your property via a first or second charge. We’ll typically lend more to you if we will hold the first charge on your property (that is, ours will be the only mortgage on the property, or will have priority over any others). If our loan is a 2nd charge bridging loan we may still lend to you if there is sufficient equity in the property.
How much will you lend?
For commercial purchases and residential or commercial development, you can borrow up to £10,000,000 (subject to loan to value and approval).
What are the benefits of bridging finance?
Size and speed are the major benefits. Try to raise large bridging loans via traditional routes and chances are your paperwork will still be being processed long after the opportunity has evaporated.
Bridging finance with ABC is much faster. You submit your request and details of the security. We provide a decision in principal almost immediately. That then leaves you free to press ahead with your property purchase or redevelopment, while we get everything finalised.
Reaching a decision is easier because you repay the loan through the sale (or refinancing) of the property. Providing we know the property will generate enough to cover the loan, other typical finance checks (eg credit checks, affordability, employment etc) are less of an issue.
Will you say yes?
That’s the beauty of bridging loans with us – we say yes all the time. Partly, that’s because we’re the ones making the loan, so we don’t have the pressures and limitations other landers might. But mainly, it’s because we approach the whole concept of bridging from a different perspective to many of our competitors; we work harder to find a reason to say yes swiftly and simply.
Let us say yes to you.