FAQ's Everything you need to know about Bridging Loans
What Can I Use a Bridging Loan For?
A bridging loan can be used for any legal commercial or personal purposes. They are commonly taken out to help with the acquisition of property, offering short-term financial help to secure a home or commercial premises.
How Much Can I Borrow?
The amount you can borrow generally depends on your circumstances and what you can afford. We take into consideration a number of factors including the deposit you are able to put down, your income and your monthly expenses. For further information, you can get a free quote within 24 hours by filling in our simple enquiry form.
How Long Does it Take For Me To Get My Bridging Loan?
The time it takes to finalise a bridging loan can vary. In general, the entire process can typically take anywhere between 7 and 28 days. We can be accommodating should you need your bridging loan sooner, if this is the case don’t hesitate to get in touch.
How Long Does a Bridging Loan Last?
A bridging loan is a short-term lending solution. It’s recommended that they should only be used for up to a maximum of 12 months. If you need the funds for longer than 12 months, then it’s likely that bridging finance is not the best option for you.
What Is a Closed Bridging Loan?
A closed bridging loan has a fixed repayment period as part of the agreed exit strategy. They are typically more popular with borrowers who have an end date, whether this is an estate agent’s completion date or final transaction date for inheritance owed to you.
What Is An Open Bridging Loan?
An open bridging loan is when a loan has no fixed date by which the funds have to be repaid. They’re useful in circumstances when equity is tied up in the property. For example, when a borrower is looking to purchase another property before the exchange of contracts to sell their existing property is finalised.
What Is Mezzanine Funding?
Mezzanine funding is a highly complex mixture of debt and equity financing to raise funds for development projects. It’s a loan often only approved with companies who have a proven track record within their industry, or for someone who has an excellent reputation in the property.
What Is a Secured Bridging Loan?
A secured bridging loan is a type of loan taken out against an asset. The chosen asset is then used as collateral should you default on repayments. It’s one of the best options for applying for a loan if you don’t have a good credit rating but are looking for finance. The value of your personal assets will be taken into consideration, providing you with a reasonable loan for your needs and an achievable repayment plan.
What Is an Unsecured Bridging Loan?
An unsecured loan is a preferred way of borrowing money if you have a good credit history. Unlike with a secured loan, there’s no need for you to offer up an asset as collateral. The risk is higher for lenders as it’s not protected by an asset.
Can I Get a Bridging Loan if I Have a Bad Credit Rating?
Eligibility for our bridging finance is determined on a case-by-case basis, which means you can apply for a bridging loan even if you have a bad credit rating. We work with a number of lenders who are able to help those who have previously had trouble gaining financial help. As long as you have sufficient equity or collateral to cover the remaining loan balance should you default, there’s little reason why you shouldn’t be able to secure a bridging loan.
How does the process work?
We’ve broken the bridging loan process down into 5 easy steps. From processing the application right through to finalising your bridging loan, take a look at our homepage for more information.
What is LTV?
LTV simply means Loan-To-Value. It’s a term used to describe the ratio of a loan to the value of the property purchased. It’s one of the key aspects a borrower should look at when deciding which bridging loan company to use.
Are My Details And Information About My Application Kept Confidentially?
Yes, of course. Privacy is extremely important to us. We do not sell or pass on any of your information to anyone.
Are There Any Upfront Fees?
We do not expect any of our clients to pay any upfront fees for our bridging loans. The only fees that may be required are in the instance that you cannot provide a suitable valuation report. In order to have one carried out you may be asked to cover the costs.
Great advice, great service and very fast. UKBF helped us secure the commercial loan we required, when we really needed it.