Large Bridging Loans
Large bridging loans are designed to provide fast finance for residential or commercial property purchases between £1 million and £250 million.
If you find the perfect property, the last thing you want to do is lose out while you arrange finance. Large bridging loans ensure you can purchase the property you want while you arrange other finance.
Terms can be between 12 and 24 months with up to 80% LTV (loan to value).
What can Large Bridging Loans be used for?
Large bridging loans are ideal for residential or commercial use. They are useful for securing a property so you don’t lose it, developing a property so it qualifies for a standard mortgage or for larger projects where standard finance isn’t immediately accessible.
Loans like this are popular with large developers and commercial projects that require short-term financing while other arrangements are put into place.
For example, converting properties into HMOs, improving a derelict property until it meets standard mortgage criteria or for larger commercial or residential developments.
In a strong market where opportunities can be gone in the blink of an eye, large bridging loans ensure you can seize that opportunity right away.
Traditional mortgages take anything up to 3 months to arrange. A large bridging loan can be arranged within days. If time is of the essence, it’s an excellent option.
What is a Large Bridging Loan?
A large Bridging Loan is a loan designed to provide quick access to funds for those needing larger amounts of money than what is usually available with a bridge loan.
Large bridging loans tend to be provided by lenders who may offer loans up to £25 million or more, depending on the borrower’s circumstances. These larger loans are often used in situations where traditional financing is not able to be obtained and an immediate decision needs to be made.
To apply for a bridging loan, borrowers must meet certain criteria set out by the lender and provide proof of income and assets. Businesses may use a bridging loan when they need extra capital quickly, such as when purchasing a new property or buying equipment.
It can also be used by individuals who require funds for renovations or repairs before selling their home.
With large bridging loans, lenders may require additional security such as second-charge mortgages or personal guarantees, so it’s important to research all your options carefully before deciding if this type of finance is right for you.
What costs are involved with a Bridging Loan?
Bridging finance, although costly, fulfills a specific purpose. There is usually an arrangement fee of 2%, plus a monthly interest rate ranging from 0.6%-1.25%, with the exact amount dependent on the lender and the asset.
Additionally, solicitor fees must also be considered; it is essential to ensure that your chosen solicitor is knowledgeable about Bridging finance as the legalities are quite intricate.
It is essential to take into consideration all expenses, including service fees, brokerage costs, and legal fees when negotiating transactions. To determine if this type of financing is practical, begin by calculating your profits and working backwards to cover these expenses.
The rates of interest for these loans are comparable to those of mortgages, but know that lenders will demand regular monthly payments – so it is much more economical to pay off the loan faster than holding it over an extended time period. The maximum span for these loans is typically twelve months.
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Who can apply for a Large Bridging Loan?
Anyone looking to make a large purchase, such as a house or business, can apply for a large bridging loan. A bridge loan is a type of short-term financing designed to help individuals and businesses bridge the gap between long-term financing and immediate needs.
These loans usually have a higher interest rate compared to other loans but they are beneficial as they can provide access to funds quickly and with less paperwork than traditional loans.
To be eligible for a large bridging loan, applicants must typically have good credit and financial stability. They may also need to show evidence of sufficient income or assets that can be used as collateral.
In some cases, applicants may need to provide additional documents such as tax returns or bank statements in order to prove their ability to repay the loan.
Can you lend to borrowers with bad credit history?
Yes, you can lend to borrowers with bad credit history. However, while it is possible to do so, there are a number of considerations that must be taken into account before going ahead with the loan.
For instance, it may be beneficial to assess the borrower’s financial situation and ability to repay the loan on time.
Additionally, lenders may require additional security or collateral when lending to borrowers with bad credit history.
It is also important to weigh up the risk associated with lending money to such individuals; if repayment is not made in full and on time then the lender could potentially suffer a loss.
Generally speaking, it is advisable for lenders to research all potential borrowers thoroughly before committing to any loan agreement.
What are the alternatives to a Bridging Loan?
The alternatives to a bridge loan are numerous, and they can vary depending on the individual’s financial situation.
For example, if an individual is looking to buy a new home but needs financing, they may want to consider taking out a mortgage or a lombard loan instead. These types of loans are secured by the property itself and will often offer more attractive terms than a bridge loan.
Other alternatives include taking out a standard personal loan from a bank or credit union, which may have fewer restrictions than a bridge loan.
Additionally, individuals can explore borrowing from family or friends for short-term financing needs in order to avoid the extra costs associated with taking out a bridge loan.
Ultimately, it is important to weigh all options carefully before deciding which type of loan is best suited for your needs.
Why choose GPS Financial
GPS Financial was founded in 2011 with the aim of ending the stress that goes with all the paperwork and misinformation of mortgaging your property.
Giving you peace of mind while you sit back and let us do all the work to find you the best deal for your financial situation.
Based in Cardiff GPS Finanacial are award winning property finance specialists, taking home the award for Best Firm: Bridging & Commercial in 2022, selected by Dynamo for Intermediaries, one of the countries foremost Mortgage Clubs.
GPS Financial are a friendly team of specialised brokers with decades of combined experience, access to all the leading lenders ensuring you receive the best possible value and the best possible service.
Passion – Here at GPS Financial, we are enthusiastic about the projects we undertake and the successes we accomplish. We don’t discriminate against any job – from the largest to the smallest task – we will tackle them all! Difficult problems are our forte.
Helpfulness – We are invested in the prosperity of our clients. We will strive to guarantee that you are content with the assistance we give and the accomplishments we make. We will devote every effort to ensure success.
Dependability – We are always eager to embrace new opportunities, approaching them with our long-standing expertise. By utilizing innovative techniques we are willing to tackle any situation, reacting to the ever-evolving real estate industry.
If you’re considering a large bridging loan or need fast finance for a project, contact GPS Financial today, fill out the form at the top of the page and one of our expert advisors will get back to you.