| 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 | ___ |
Properties such as hotels and care homes are key investments where bridging finance can help - and here we'll run through when this funding option might be the best option.
Some of the common uses include:
We'll explain each of these scenarios, and where bridging finance fits it - as well as how to get the best rates!
If you'd like professional advice from an independent broker, give us a call on 0330 304 3040, or drop a message to info@revolutionbrokers.co.uk.
Let's expand a little on the four examples given above.
You can, and most lenders who offer hotel bridge loans will also cater to the care sector. Similar reasons apply:
Bridge finance is faster and more flexible than a mortgage, and so is a way to raise capital when you need to move quickly - that might be buying a business or property at auction, for example.
Some properties are uninhabitable, and therefore ineligible for a mortgage. In this case, a bridge loan allows you to carry out the renovation works, and then remortgage once the property is in a habitable condition.
The critical difference is that commercial bridging loans are bespoke, and therefore unregulated. Not every lender provides this type of short-term financing, and you could be asked to:
Residential bridge loans for a home you wish to live in are regulated by the Financial Conduct Authority, overseeing factors such as rules for selling and providing independent advice.
Commercial loans fall outside of this category, and therefore rates and terms can vary significantly between lenders.
Most commercial bridge finance lenders will offer LTVs capped at 70% or 75%, so you'll usually need at least a 25% or 30% deposit.
You can get a higher LTV with additional security, but if the project is considered a higher risk, you might need to provide a deposit of 50%.
Lenders will look at several factors before offering to lend:
Commercial finance is a specialist area. The best way to find competitive financing is to consult an experienced, whole-of-market broker who can negotiate lending with the most suitable lenders.
Contact business finance broker on 0330 304 3040, or send us an email to info@revolutionbrokers.co.uk to arrange a good time to talk about your capital requirements.
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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.
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