Barclays Bridging Loan Alternative
Barclays doesn’t offer bridging loans to anyone except existing customers. If you’re not a customer and need a bridging loan, Barclays isn’t going to be able to help.
GPS Financial can.
We work with a panel of first-class lenders who offer fast cash for property use. We are a Barclays bridging loan alternative worth checking out.
Application is simple, decisions are fast and you could have your cash within days.
Borrow between £25,000 and £25 million for up to 12 months at very competitive rates!
You can use a Barclays bridging loan alternative to:
- To buy a property at auction
- Buy a property while you wait for your sale to complete
- To support a broken property chain so you don’t lose your dream home
- Develop or renovate a property so it qualifies for a standard Barclays mortgage
- Complete a property purchase while your Barclays mortgage is being processed
- Any property use where short-term finance is required
Barclays bank has an excellent reputation with businesses and consumers. Founded in 1690, the bank has been providing financial services for hundreds of years and is a trusted name on the High Street.
It may not provide bridging loans to everyone, but it does provide standard mortgages and other financial products.
If time is short or you need to move quickly, GPS Financial is the ideal Barclays bridging loan alternative.
Most High Street banks don’t offer bridging loans at all, but Barclays does. It is limited to existing customers only, and you will have to visit the bank and and speak to a Barclays mortgage specialist, as there’s no way of applying online!
What is a Bridging Loan?
A bridging loan – also commonly known as a bridge loan or bridging finance – is a type of short-term financing used to bridge the financial gaps that may arise during the process of buying and selling a property.
It is typically used to cover a period of time between the sale of an old property and the purchase of a new one.
This type of loan can be useful in helping to secure a new mortgage, by providing the funds necessary to pay for a new home deposit while waiting for the sale to be completed on the current property.
Bridging loans are usually secured against a property, which means that if the borrower defaults on their payments, the lender can repossess the property.
Refinance is also an option for those who need bridging finance. The interest rate on a bridging loan can be higher than that of a mortgage, due to the risk involved in short-term financing.
However, as a short-term financing option, a bridging loan can be a useful tool for those interested in buying and selling property.
What are the criteria for a Bridging Loan?
The criteria for a bridging loan are varied but typically include the loan-to-value ratio (LTV), the borrower’s credit history and income, and the property being used as collateral.
LTV is the percentage of the property’s value that the lender is willing to lend to the borrower.
This amount can vary based on the lender’s risk tolerance but typically ranges from 70% to 85% of the property’s value.
Borrowers may need to provide proof of income or assets to show their ability to repay the loan.
In addition, the property being used as collateral must meet certain criteria, such as being in a desirable location and having sufficient value to cover the loan amount.
With these factors in mind, borrowers can determine whether a bridging loan is a suitable solution for their financial needs.
What can you typically use a Bridging Loan for?
Bridging loans can be arranged for multiple reasons, with one of the frequent use cases being real estate development.
A short-term bridging loan can provide developers with the necessary capital to complete a project while waiting for long-term development finance.
Other circumstances where a bridging loan can be used include:
- Commercial Bridging Loans
- Bridging Loan Property Purchase
- Bridging Loan for Property Development
- Regulated Bridging Loan
- Auction Bridging Finance
- Bridging for Refurbishment
- 100% Loan To Value (LTV) Bridging Loans
- 85% Loan to Value (LTV) Bridging Loans
- 80% Loan to Value (LTV) Bridging Loans
- 75% Loan to Value (LTV) Bridging Loans
- Bridging Loan for Unmortgageable Properties
With the flexibility to use bridging loans for a range of purposes, the loan can be customised to suit individual needs, whether that’s to make a property purchase, complete a renovation, or fund a new project.
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How much can I borrow with a Bridging Loan?
When determining how much you can borrow, there are several factors to consider.
Your credit score and history, income, debt-to-income ratio, employment status, and the value of the collateral (if applicable) are all important factors that lenders will take into account.
Typically, lenders will offer a loan amount that is equivalent to a percentage of the property’s value, typically anywhere from 70-85%.
This means that if a property is valued at £500,000, for example, a borrower could potentially secure a bridge loan for up to £425,000.
Additionally, lenders will look at your debt-to-income ratio to determine how much you can afford to repay each month.
If you have a strong credit score and history, a steady employment status, and a low debt-to-income ratio, you may qualify for a higher loan amount.
Ultimately, the amount you can borrow will depend on your individual financial circumstances and the lender’s specific lending criteria.
It is important to only borrow what you can afford to repay in order to avoid getting into a cycle of debt.
Why Choose GPS Financial?
GPS Financial was formed in 2011 with the objective of minimising the difficulties associated with handling incorrect paperwork and information when it comes to obtaining a mortgage for your property.
We will take care of the process, so you can be confident that the team at GPS will find the best and fairest financial option for your needs.
Based in Cardiff, GPS Financial is an award-winning property finance specialist, taking home the award for Best Firm: Bridging & Commercial in 2022, selected by Dynamo for Intermediaries, one of the country’s foremost Mortgage Clubs.
GPS Financial has an extensive team of experienced brokers who have years of combined knowledge in the financial industry. We have access to all the top lenders, guaranteeing you receive the best service and most importantly, greatest value.