Lloyds Bridging Loan
Looking for a Lloyds bridging loan alternative? Want lower rates, a faster decision and a more customer-centric application process? GPS Financial can help!
Lloyds bank bridging loans are available to non-customers, but the application process isn’t the easiest. Lloyds is a huge bank with a corporate approach that doesn’t work for everyone.
If you need fast finance for a property transaction, a more personal approach from GPS Financial makes the process simple.
You could borrow between £25,000 and £25 million for up to 18 months at very competitive rates. You could have the money in days, perfect when the property market moves so fast!
A Lloyds bridging loan alternative can help you:
- Support a broken property chain so you don’t lose out
- To buy your dream home while yours has yet to sell
- To purchase a property at auction
- Complete a purchase while your mortgage is still being processed
- To renovate or develop a building so it qualifies for a standard mortgage
Lloyds bank has been around since 1765 and has provided banking services to individuals and companies for most of that time.
The bank has a long and illustrious heritage that provides reassurance. It’s not your only, or necessarily the best value option though.
GPS Financial has access to a pool of reliable lenders willing to help you buy property for residential or commercial purposes.
Competitive rates, fast decisions and award-winning service. What’s not to like?
What is a Bridging Loan?
A bridging loan, also known as bridge finance, is a short-term finance option used to bridge the gap between the purchase of a new property and the sale of an existing property.
It is a type of specialist bridging finance that is not typically offered by high street banks, but instead can be sourced through a specialist lender or broker.
Bridging loans are frequently used by property developers, investors, and homeowners, who need to act quickly to secure a new property whilst waiting for the sale of their existing property to complete.
Interest rates for bridging loans are typically higher than those for traditional mortgages due to the increased risk associated with short-term finance.
Borrowing against an existing property or using it as collateral is a common way to secure bridging finance.
The loan term for a bridging loan can vary, but it is typically between 6-18 months with the loan repaid in full at the end of the term.
What are the pros and cons of a Bridging Loan?
The main advantage of a bridge loan is that it provides quick access to funds, often within a few days of application.
This means that borrowers can secure a property quickly, using the bridging loan to cover the deposit or purchase price.
Another benefit is that borrowers can avoid the need for a high-street lender, whose approval process may take longer and require more paperwork.
However, bridge loans come with higher interest rates than traditional loans, as lenders are taking a greater risk due to the short-term nature of the loan.
In addition, the cost of borrowing can be steep if the loan is not repaid on time, as bridge loans often carry hefty penalty fees.
Borrowers should also be aware that if they are unable to repay the loan, they risk losing the property used as collateral.
Therefore, it is essential to carefully weigh the pros and cons of a bridging loan before deciding to take one out.
What can a Bridging Loan be used for?
A bridging loan, also known as a bridge loan, can be used for a variety of purposes.
- Commercial Bridging Loans
- Bridging Loan Property Purchase
- Bridging Loan for Property Development
- Regulated Bridging Loan
- Auction Bridging Finance
- Bridging for Refurbishment
- Bridging Loan for Unmortgageable Properties
These loans are typically short-term and designed to be repaid quickly, usually within 6 – 18 months.
In addition, bridging loans can also be used for businesses that need short-term financing to help them expand or cover unforeseen expenses.
Ultimately, a bridging loan can be a useful financial tool for individuals and businesses facing temporary financial constraints.
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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.
How much can I borrow with a Bridging Loan?
The amount of money you can borrow depends on your financial situation and creditworthiness.
Lenders consider factors such as your income, employment status, credit score, and debt-to-income ratio to determine how much they are willing to lend you.
Generally, the more stable your income and the better your credit history, the higher the loan amount you may qualify for.
Typically, bridging lenders will offer a loan amount that is equivalent to a percentage of the property’s value, anywhere from 70-85%.
This means that if a property is valued at £500,000, a borrower could potentially secure a bridge loan for up to £425,000.
However, most lenders will also evaluate your ability to repay the loan and may set borrowing limits accordingly.
Remember that borrowing more money also means you will have to pay more back in interest charges, so consider how much you can realistically afford to repay before applying for a loan.
Why choose GPS Financial?
Established in 2011, GPS Financial aimed to reduce the confusion related to dealing with inaccurate documentation and data while securing a mortgage for your property.
Rest assured that the experts at GPS will handle the procedures and secure the most suitable and fairest financial solution to meet your requirements.
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 consists of a team of skilled brokers who possess a vast wealth of experience in the world of finance. Our wide range of connections with the most reputable lenders ensures that you will receive high-quality service and great value.