Bridging Finance is designed for short term
finance based primarily on the value of the property or
land that can be released extremely quickly to help ‘bridge’
a situation. Circumstances in which someone may need a bridging
loan may be property development, business opportunities,
a break in a purchase chain, auction purchases or to buy
a property which is below market value to enable a client
to subsequently take advantage of the equity built up in
a property, hence lending on the value rather than the purchase
price of the property. This can sometimes be incorporated
with light development finance in order to use future projected
rental income.
Lenders work in different ways when it comes
to bridging a loan. Some lenders are prepared to lend almost
on a non status basis where they do not concern themselves
with checking the borrowers ability to pay and are primarily
concerned with the asset as security, others are more cautious
about analysing both serviceability and the feasibility
of the proposed repayment of the capital.
Bridging loans will usually be for a
set period, typically of six to twelve months. The loan
may be offered with either an open arrangement, where it
is not established how you are intending to repay the bridging
loan at that point; or a closed arrangement where a specific
deal has already been set up such as the sale of the property
where the loan is to be repaid. As this is an area where
charges are high and lenders can make significant profits,
you need to be well advised as to your choice of lender,
we can assist you with this.
Our fee for this service is
up to 1% of the loan amount, typically this would be £595.
Your property may be repossessed if
you do not keep up repayments on your mortgage.
The products and services promoted here
are not part of the Openwork offering and are offered in
our own right. Openwork Limited accept no responsibility
for this aspect of our business. These products are not
regulated by the Financial Services Authority.
