Our short term bridging loans are for purchase, refinance, property improvement or to unlock working capital for business purposes.
This unique overdraft provides you with a flexible drawdown facility giving you instant liquidity and avoids heavy setting-up costs.
Individually structured loans for residential and commercial projects, with finance available for site purchase, construction and fees, refinance, equity release and to provide working capital. Loans are available up to 90% of the site cost.
Flexible first and second charge non-regulated loans available on terms from 3 to 5 years.
We have a commitment to innovation and with the ever changing financial landscape around us we have designed a range of unique Specialist Lending products that solve a range of property finance needs.
Bridging Loans your questions answered..
A bridge loan is secured by first or second charge over a property. The loan ‘bridges the gap’ until a more permanent arrangement such as a mortgage or sale is secured. It gives you the money to proceed with the purchase or development and frees up money from other assets or investments.
We have a range of bridging loan solutions available at competitive bridging loan rates to suit the funding requirements. Loans are repaid from refinance or sale of the property.
See more: Key bridge loan Terminology.
Short-term loans are used to help ‘bridge the gap’ in funding by way of a bridging loan. They are the perfect short-term funding solution to ease cash-flow when you want to purchase a property, but are waiting for funds to become available from the sale of another property or asset.
Our Residential Bridging Loans are cost-effective and raise short-term finance on all types of investment properties.
We are regulated principle lenders providing. Alternative Bridging Corporation (Cheval) Limited is authorised by the Financial Conduct Authority (FCA) to make regulated first and second charge loans to homeowners.
We offer two types of refurbishment loan. A Light refurbishment and Heavy Refurbishment.
Our light refurbishment loan is for purchase or refinance, to pay for improvements up to 70% of the increased value of a property. We can arrange refurbishment loans from £250,000 to £3.5M for the improvement of existing buildings prior to lettings or resale.
Our heavy refurbishment loan provides fast funding for major makeovers. It is perfect for structural reconfiguration or the extension of existing residential properties for which planning permission is required.
Our Commercial Bridging Loans are regularly used:
They are particularly useful for unlocking working capital for use at ‘commercial property auctions’ as a form of auction finance.
A redemption statement is a financial document that provides a detailed breakdown of the amount needed to fully repay a loan at a specific point in time. In the context of bridging loans and property finance, it specifically outlines the outstanding balance, including any interest, fees, or additional costs that need to be settled to discharge the loan entirely.
1.A first charge loan is secured on a property ranking in preference to any subsequent charges.
2. Whereas a second charge loan is secured against a property and ranks behind the first charge loan.
A bridging loan underwriter is a financial professional who reviews bridging loan applications to determine whether or not the borrower is eligible for a loan. A bridging loan underwriter consider a variety of factors, including the borrower’s income, debt, credit history and assets, to make their decision.
Read more about our bridging underwriters here..
1.A bridging loan can be a good idea in the right circumstances. Fo example, for people who want to raise short-term finance secured on a property.
2.A bridging loan is often used to ‘bridge the gap’ in the short-term until a longer-term solution is put in place.
Indicative terms are a critical aspect of the lending process in the world of bridging loans and development finance. They serve as an essential guidepost for borrowers, helping them understand the proposed loan structure, interest rates and repayment terms before committing to a financial arrangement. In this comprehensive guide, we will explore the significance of indicative terms and how they apply to Alternative Bridging’s range of bridging loans and development finance solutions.
If you need help with this please, contact us and speak to one of our new business team who will be happy to help.
With sufficient information we can then provide you with an indicative loan offer in principal.
As soon as you accept the Heads of Terms, the application will be processed by our team of experienced underwriters.
We work with a tried and tested panel of valuers and solicitors.
They will ensure the loan can be advanced swiftly and efficiently.
See more about our ‘6 steps to short-term lending success’ here
We are not brokers but principal lenders.
This means we have our own funds readily available to lend which are provided by our shareholders and bankers.
You do not usually need proof of income to obtain a short-term loan.
Short Term loans are not usually paid back monthly.
A bridging loan may typically run for between 6 months and three years.
Bridging loan interest rates are quoted as monthly interest rates and tend to be between 0.50% and 1.50% each month – but these rates will fluctuate.
Bridging loans are short term loans and may typically run for between 3 months and 2 years. Where a bridging loan is secured on your home, or a property that has been or will be yours.
Or any immediate family members home, then the maximum term is 12 months.
It is usually quicker to get bridging finance than a mortgage.
It may typically take between a few days and a few weeks for a loan to complete from the initial application. Take a look here at what documents are needed in preparation of obtaining a loan so that you are fully prepared.
Bridging finance will usually need to be secured on a property asset.
Lenders may secure a loan on a single or multiple properties. These can be the borrower’s own residence or an investment property.
Bridging finance is intended to be used over a short-term, typically maybe only 12 months or less.
So, while bridging loan rates are usually more expensive than mortgage rates. The overall cost of borrowing may not be as expensive.
No. Stamp Duty is payable on the purchase of a property and is dependent on the purchase price of that property.
If your agreement is regulated by the Consumer Credit Act 1974 (CCA) or the Financial Conduct Authority (FCA), and you are dissatisfied with our response to your complaint. Or we do not provide a final response within 8 weeks you may have the right to take your complaint to the Financial Ombudsman Service (FOS).
They will not deal with a complaint unless you have given us the opportunity to resolve it first. The FOS mediate on behalf of customers and financial services firms that can’t reach an agreement. You can find out more about FOS and their service by visiting their website: http://www.financial-ombudsman.org.uk/
