Chain Break Bridging Loans
Chain break bridging loans are a simple, effective way to complete on a property purchase without losing out due to a broken chain.
GPS Financial provides temporary finance to help you buy the property you want while you wait for the sale of your existing property.
It’s the perfect solution to an often stressful time!
We can arrange chain break bridging loans from £25,000 to £25 million for periods of up to 3 years.
In most cases, you can borrow 75% LTV of the purchase of the new property, you could get 100% LTV if you have additional security. This is usually the property you are selling.
Bridging Loans for chain breaks
Bridging loans for chain breaks are the logical solution for completing a property purchase when your own sale falls through.
They mean you can still buy the property of your dreams even if your buyer lets you down.
GPS Financial works with homeowners, landlords, developers and investors to provide competitive rates, flexible terms and fast finance for just these situations.
We’re an award-winning financial provider with a wide pool of lenders willing to provide up to £25m for residential or commercial; property purchases throughout the UK.
Rates are competitive, fees are low and we’ll do everything we can to help you support a chain break for any type of property.
A collapsed chain doesn’t mean the end of the road. Chain break bridging loans are designed specifically to get you exactly what you want.
What is a Bridging Loan?
A bridging loan is a short-term loan that can be used to bridge the gap between the sale of one property and the purchase of another. It can also be used to buy a property at auction or to help with a chain break.
They are often used for buying a property quickly without having to wait for a traditional mortgage to be approved.
Bridging finance is commonly used by property developers and investors in the buy to let market. The repayment of a bridging loan is usually made when the property is sold or when long-term finance is secured.
Lenders offer different interest rates and terms on bridging loans, depending on the borrower’s circumstances and the property’s value.
It’s essential to carefully consider the risks involved with a bridging loan before taking one out.
How do I get a Bridging Loan?
To get a bridging loan, you will need to find a lender who offers this type of finance, like GPS Financial.
When applying for a bridging loan, you will need to provide details of your current mortgage and the new property you want to buy.
The lender will assess your ability to repay the loan, including any interest, fees and charges, before providing you with the finance.
Repayment terms can vary, but typically, you will need to pay off the loans within a few months to a year.
Speak To An Expert
Giving you peace of mind while you sit back and let us do all the work for you while finding you the best deal for your financial situation.
What can you use a Bridging Loan for?
One of the most common uses is for providing the funds needed to complete the purchase of a property.
This can be particularly useful for those who need to move quickly in order to secure a desirable home or investment opportunity.
The loan is typically provided by a specialist bridging lender, who will assess the borrower’s ability to repay the loan on time.
Other potential uses for bridging finance include:
- Commercial Bridging Loans
- Bridging Loan Property Purchase
- Bridging Loan for Property Development
- Regulated Bridging Loan
- Auction Bridging Finance
- Bridging for Refurbishment
- 100% Loan Top Value (LTV) Bridging Loans
Ultimately, the flexibility of a bridging loan makes it a useful tool for those who need temporary funding to bridge the gap between longer-term financial arrangements.
What costs are involved with a Bridging Loan?
Bridging finance comes at a cost, but it serves its intended purpose.
You will incur a an arrangement fee, typically topping 2%, and a monthly rate ranging from 0.47% to 1.25% which depends on the lender and the asset.
There are expenses related to hiring a solicitor, and it’s crucial to ensure that the solicitor you select is knowledgeable about bridging loans, as the legal processes involved can be quite intricate.
Service fees, brokerage fees, and legal fees are all factors to consider when negotiating deals.
Therefore, it’s crucial to include all expenses and calculate your profit backward to determine if this financing option is viable.
There are many things that you can use bridging finance for, it’s a very flexible form of finance.
Why choose GPS Financial
GPS Financial can help you set up a chain break bridging loan.
GPS Financial are award winning property finance specialists, taking home the award in 2022 for Best Firm: Bridging & Commercial, selected by Dynamo for Intermediaries, one of the country’s foremost Mortgage Clubs.
At GPS Financial our team of skilled brokers have amassed a considerable amount of expertise and experience over the years.
We have connections with the most reliable loan providers and can provide superior service and the best possible value for your investment.
If you’re considering a chain break bridging loan, contact GPS Financial for expert advice, fill in the contact form at the top of the page and one of our financial advisors will get back to you.