Thursday, August 18, 2016
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Trinity has access to a host of banks and building societies providing specialist bridging loans with rates starting from 0.65%.
Bridging loans are used for a wide range of reasons typically by property professionals who have been working in the market for years, also asset rich and cash poor clients.
They are also popular with clients who have limited options and need cash quickly, either to purchase a property or pay an unexpected tax bill.
Common reasons for using bridging loans include:
- Secure funds to purchase a property after a chain brakes down. The sale of another property is often used as the repayment vehicle.
- To raise funds to build a property, potentially on a farm or as part of a garden grab. The sale of the property is often the repayment vehicle.
- Downsizing for older borrowers. Clients often secure bridging loans to build a granny annexes or improve their home to add value and sell. Others use it to generate funds to move into a care home. The sale of the property is often used in these scenarios.
- Business expansion – to purchase new commercial premises. Commercial mortgages are often used to repay the bridging loan.
- To help clients who have already exchanged on an auction purchase and there is not enough time to secure mortgage funding.
- Raise cash to invest in a new business venture or buy another property – potentially a holiday home abroad. The client will need to have a UK property or asset as the repayment vehicle.
Trinity Specialist Finance has access to one bank providing regulated self-build bridging loans to clients with land who want to build a new property. Once the client has planning permission they sell property is used to repay the loan.
As part of the transaction, the lender will take both properties on one title as security, rather than two seperate titles. The lender does not ask the client if they have property experience when they building their own residential home.
Specialist lenders
Masthaven is one lender with particularly good rates. Its residential bridges start from 0.79% for first and second charges, and its regulated and non-regulated loans. It charges a 2% arrangement fee and does not have an exit fee.
It charges a 2% arrangement fee and it does not have an exit fee.
If the sale of the property is used a repayment vehicle, the transaction should be relatively simple and credit back terms can be issued based on initial conversation.
The lender has a 7 – 10 day turnaround and it regularly takes applications from rival companies not work quickly enough.
Contact Trinity Specialist Finance to secure a bridging loan.
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