Bridging Loans UK – explained

Bridging Loans UK

Over at All Star Funding Solutions we try to work with some of the best lenders in the UK. We have partnered up with a new Bridging Loans provider who is leading the sector with their high Loan to Values (LTVs) against property.

What are Bridging Loans?

Bridging Loans are short term loans which are usually spread over a period of 12-24 months. Their intended purposes is to provide a short term cash solution whilst a long term solution can be put in place.

With a Bridging Loan every lender will expect the loan to be repaid in full (with interest) at the end of the agreed timeframe.

Bridging Loan Fees

Bridging loans are known to charge a number of fees – see below:

  • Firstly there is an arrangement fee for the set up of the loan. This can range from 1% – 4% of the loan amount.
  • Secondly there is the monthly interest. This amount varies depending on the risk to the lender and the values being borrowed. A current market average is between 0.5% – 1.5% per month.
  • Thirdly some lenders will allow you to pay back your loan early which may incur an exit fee of around 1% of your loan
  • Fourthly valuation fees and legal fees should be considered. These can vary depending on the location and complexity.

Recent Deals

A 68% LTV second charge bridging loan UK was the order of the day  

Our lender recently helped a client who needed a second charge bridging loan secured against their residential property. Due to the current economic climate, the client needed the loan to support the expansion of their catering business. 

The lender applied their flexible, simple approach and helped the client by funding a £560K bridging loan UK in 16 days. 

Another great example of how this lender can take non-standard and time sensitive scenarios and give a speedy solution. Furthermore if you have a case that may sit outside the box, please get in touch

Get in touch

Please click below or call 0161 8211478 to speak with one of our specialists.

Finally as members of the Financial Intermediary and Broker Association you can be assured of a great service.

FIBA

Additionally some of our specialist areas of Finance are:

Asset Based Lending • Asset Finance • Business Loans • Cashflow Finance • Factoring • Invoice Discounting • Single Invoice Finance • Trade Finance • Stock Finance • Credit Insurance

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