Bridging Finance FAQ
Why should I come to you for a Bridging Loan?
You should come to us because we can help and support you and your client through the process of obtaining Bridging Finance. Our staff work very closely with the lenders, and are on hand to assist both broker and client through the application.
What commission will I be paid?
This will depend on the proposition being put forward, but typically, brokers can expect to be paid 1% on any given deal.
What is the difference between ‘open’ and ‘closed’ bridging?
A ‘closed’ bridge is where all terms and conditions of both sale and purchase on both properties have been agreed so the "exit route" or repayment source is already arranged but the funds are not likely to become available in the time required or there is a delay on moving in.
An ‘open’ bridging loan means that there is not a confirmed repayment method or "exit route". This usually comes about when terms have not yet been agreed on selling one property but you are still determined that you want to go ahead with the purchase of the second property.
Different rates and LTV’s typically apply to ‘open’ and ‘closed’ propositions.
What is a regulated mortgage contract?
A regulated mortgage contract is one where :
- The loan is to an individual
- The security is a first charge
- The property is residential or semi commercial with more than 40% residential
- The property is occupied or will be occupied by the borrower or their family
If my enquiry relates to a regulated mortgage contract, will I be able to contact you directly to proceed?
Yes. Our lenders are able to deal directly with customers for regulated mortgage contracts. Complete the enquiry form in the Apply Now section and one of our dedicated case handlers will call you back immediately to discuss your requirements fully.
How soon can I have the money?
We have been able to advance on a loan application within 24 hours. Our aim is to proceed to completion within 5 working days.
Are there any penalties for paying back the loan prior to the end of the agreed period?
There are NO early repayment charges payable within the agreed loan term.
Do you lend on overseas property?
Our lenders can lend in lend in England, Wales, mainland Scotland and Northern Ireland. We are unable to lend on property situated outside of the United Kingdom.
Are you able to lend to offshore companies?
Yes, subject to the property being offered as security being located in England, Wales, mainland Scotland and Northern Ireland, and that a personal guarantee of a person resident in the United Kingdom is provided.
I am an FSA authorised intermediary. How do I create a KFI for a regulated mortgage contract?
Our lenders will guide you through the process in order to produce a KFI. You will need to provide your FSA authorisation number and this will be checked before being able to proceed further.
