Bridging Finance
What is Bridging Finance?
Bridging Finance is a short-term funding option secured against property or land.
What can Restore Finance offer you?
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Competitive Rates
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Up to 100% funding without the need for additional security
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Loans from £26k with no upper limit
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Interest can be retained, rolled, serviced or a mixture of these
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Lending available to individuals, limited companies, partnerships, SIPPs, SASSs, Ex-Bankrupts and applicants with adverse
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Lending available in England, Wales, Scotland and Northern Ireland
Types of lending covered in Bridging Finance:
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Residential buy to lets
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Commercial
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Semi- Commercial
All are available in 1st , 2nd or 3rd charge loans.
Detailed below is a more comprehensive review of our bridging finance products:
What to expect from The RFL Team:
Loan to Value
We have an extensive panel of lenders who use different loan to values (LTV’s). Typically, most lenders go up to 70% LTV, however, we do have a few lenders than can go up to 80%. The value that lenders work from also differs between the 90-day value, 180-day and market value.
Interest Rate
The lowest interest rate we offer is 0.25% per month with the highest being 3% per month. To attract the 0.25% the deal would need to be “vanilla” with a low loan to value, an excellent borrower and quality security. The higher rates tend to be used where the applicant requires funds fast and can’t offer a consented second charge and therefore the lender has to take an equitable charge.
Arrangement Fee
Generally, the arrangement fee is 2% or 3%.
Security
Security can be taken on most properties however, there are also lenders who take security on other assets eg. jewellery, plant and machinery, cars, car reg’s etc. If a deal is greater than the lenders maximum LTV, then the lender will require additional security, this can be taken as either a first, second or equitable charge.
Serviced / Deducted Interest
Interest can either be serviced (pay it monthly), deducted from the gross loan or rolled up.
Terms
Most bridging lenders offer terms from 3-18months.
Exit Fees
The exit fee can be anything from 0 to 2%.
Loan Amount
Bridging loans usually start at £26k.