| Total security value | ___ |
| Gross loan amount | ___ |
| Gross LTV | ___ |
| Interest rate | ___ |
| Term (months) | ___ |
| Minimum term (months) | ___ |
| Assumed arrangement fee @ 2% (min £2,000) | ___ |
| Interest Retained | ___ |
| Monthly Serviced Interest | ___ |
| Admin fee | ___ |
| Indicative day 1 Net loan advance | ___ |
There are two different categories of bridging loan - regulated and unregulated.
While the phrase 'unregulated' might sound a little circumspect, this is actually a catchall term used for any bespoke lending, agreed on a case-by-case basis, for financing projects that do not relate to a residential home.
If you take out a bridging loan against your home, you will need a regulated product. Regulated means that the lender must comply with the Financial Conduct Authority rules, which are around preventing mis-selling, and the provision of independent advice.
Indeed, this is a bridging loan used for commercial businesses or borrowers using a bridge loan to buy an investment property.
Since each investment is unique, the nature of the lending is tailored to each applicant's circumstances.
There are since lenders will need to look at your exit strategy's strength as their primary decision-making factor.
Some niche regulated bridging loan categories are as below:
The criteria are much the same for any bridging loan, and the exit strategy is the most critical factor, with lenders considering:
Other criteria include:
There isn't a fixed maximum, but lenders will usually have a minimum. This value could be as low as £10,000 or might be up to £50,000.
If you have an existing mortgage and wish to take out a bridging loan secured against the same property, you will need specialist broker advice to negotiate this.
You can secure a bridge loan as a second charge, but this isn't common, and you will need a larger deposit.
Should you be using short-term bridging finance to buy a rental property, you will need commercial unregulated bridging finance.
Many investors use a bridge loan, to be replaced by a buy to let mortgage from the same lender, known as a bridge to let deal.
If you're looking for fast, short-term finance on a residential property, it is vital to seek advice from an independent, FCA registered broker.
Contact the business finance broker team on 0330 304 3040, or email us at info@revolutionbrokers.co.uk to explore the best rates currently available on the market.
Most homeowners know that remortgaging means switching a mortgage from an existing lender over to a new deal. However, the process isn't always obvious. If you're on a fixed-rate deal, you'll want to get ahead of the end of the term to avoid being shuffled onto a higher standard variable rate where your interest costs will undoubtedly ..
Finding a great mortgage as a first time buyer can feel like an uphill struggle, with a larger proportion of applicants being turned down than a year ago. Around 20% of first-time mortgage applicants are rejected, usually because of the lender risk associated with their loan. Today, Revolution Brokers explains the highest risk facto..
Investing in a rental property can be an excellent way to get onto the property ladder and earn an income. However, if you haven't owned a residence before, you might find that a mainstream bank will automatically turn you down for a buy to let mortgage. In today's guide, the Revolution Brokers team explains how you can become a ren..
Buying a home for the first time is a massive step - but the deposit is often a stumbling block for first-time buyers. It can take years to save a sufficient amount or be impossible, so there are several ways to approach the problem and get your foot onto the property ladder. From April 2021, the UK government launched the new mortg..
There is little doubt that UK buyer confidence is at an all-time high. We've recapped previously in our blogs how property market growth and prices have soared over the last few months! As we head into summer, one key area of mortgage finance seems to be expanding rapidly: property auction finance. In this article, the Revolution..
Here at Revolution Brokers, we work with thousands of property investors every year. That might be to: Remortgage a portfolio of rental properties. Secure development finance for a new project. Finance a standalone property purchase or multiple acquisitions. Streamline portfolio mortgages for multiple investments. We ofte..
If you refer a friend for a mortgage or any
type of finance you’ll both receive £25
each when their new application
successfully completes.
We are proud
members of the:
The content included in our articles, blogs, web pages and news publications is based on information accurate at the time of writing. Note that policies and criteria can change regularly throughout the UK mortgage lending market, and it remains essential to contact the consultation team to receive up to date guidance. The information included on the Revolution Brokers site is not bespoke to any circumstances or individual application scenarios and therefore is not intended to be used as financial advice. The content we share is designed to be informative and helpful but cannot be relied upon to provide individual advice relevant to your mortgage requirements. All Revolution team members are fully qualified, trained and experienced to provide mortgage advice of an independent nature. We collaborate with lenders and providers who are regulated, authorised and registered with the Financial Conduct Authority (FCA). Should you require specific mortgage borrowing types, some products such as buy to let mortgages may not be FCA regulated. The Revolution team can provide further information about regulated and unregulated lending as required. Please remember that a mortgage is a debt which is secured against your home or property. Your home can be at risk of repossession if you do not keep up with the repayments or encounter any other difficulties in managing your mortgage borrowing responsibly. This also applies to any remortgage or home loan secured against your property, including equity release products.
Revolution Brokers understands that mortgages can be complex and confusing!
Ask us any question you might have, and one of our skilled consultants will come back to you as quickly as possible.
