Residential Bridging Loans
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A bridging loan is a short-term loan, normally used to provide finance for the purchase of property ahead of an associated sale of property that can’t happen simultaneously, for whatever reason. Bridging loans normally arise where a conventional mortgage is not appropriate either because it can’t be obtained, would be too slow, or relatively expensive compared to bridging.
With bridging you may receive your money relatively quickly, relatively larger facilities might be granted than with conventional lending, there may be flexible borrowing terms – and there may be flexibility in credit criteria; borrowers who can’t obtain conventional credit might get a bridging loan.
The rule on bridging seems to be that you should not enter a bridging arrangement without a definite means of exiting it. However, intervening contingencies tend to upset “the best-laid plans” – that gives rise to Bridging’s reputation for being potentially risky. The loan is secured against property/properties, so you risk losing ownership if you can’t repay. High interest rates may be the price for flexibility and swift payment, and there are invariably fees (usually also including the bridging lender’s legal costs) – both often earning Bridging’s reputation for being expensive.
The actual legal services involved in bridging may be complicated – there is likely to be a report on the security being taken Property Report; there are likely to be guarantees required, as well as fixed security, and a debenture if a company is involved. As the loan is likely to be required quickly, all these services are also likely to be demanded under pressure, in a ”drop-everything” scenario that is highly disruptive to our normal methods of working. This gives rise to premium rates for our work – more expense for the ‘afflicted bridger’.
This product is priced for dealing with a bridging loan secured on property that you already own; if you are wishing to use bridging finance for property that you are purchasing, then as well as the loan security fees outlined, here, you will also need to retain us additionally for the property purchase – see conveyancing.
How long will it take?
We don’t generally do anything for new clients until our process of client retention has concluded – this involves agreeing the scope of what we are doing for the price (our terms are below), setting-up our client record (that includes ID checks), and producing the bill (payment in advance is required for all new clients).
After that, the work on a bridging loan is often several hours once we can schedule it in our workflow, that can depend on how busy we are at any particular time. We would not usually take-on a job for which we could not engage within about a working week. We understand that bridging work is normally urgent – and our prices reflect the likely disruption these types of engagement can have on our working patterns.
Your supplier is CLC-regulated Mounteney Conveyancers Ltd, that charges VAT some customers may be able to reclaim
We charge £1,200 + VAT = £1,440 (1st property)
We charge £325 + VAT = £390 (per subsequent)
There is more about our fees on our website here
If you have any questions or require any further information, please don’t hesitate to Contact Us.