Nationwide Bridging Loans
GPS Financial can provide competitively priced Nationwide bridging loan alternatives from reliable lenders across the UK.
We can help you borrow between £25,000 to £25 million for periods of up to 18 months at competitive rates.
You can have a decision in days and your money within a week!
The Nationwide Building Society is one of the most recognised names on the High Street and provides a selection of traditional mortgages. There are no Nationwide bridging loan options though as the company prefers standard residential products.
You can use one of our reliable Nationwide bridging loan alternatives for:
- Maintaining a property chain if you lose your sale
- Buying a residential or commercial property at auction
- Developing a property so it qualifies for a standard Nationwide mortgage
- Renovating a property so it qualifies for a standard Nationwide mortgage
- Completing a property purchase where time is a factor
Like many High Street brands, Nationwide prefers low risk residential mortgages. There is no such thing as a Nationwide bridging loan, but GPS Financial has you covered.
We work with some of the UK’s leading lenders that do provide bridging loans. We can help you borrow between £25,000 to £25 million for any property use, residential or commercial, for up to 18 months at impressively low rates.
What is a Bridging Loan?
A bridging loan is a type of short-term finance that is commonly used to bridge the gap between the purchase of a new property and the sale of the borrower’s existing property.
A bridge loan can be taken out as a mortgage or as bridging finance, and it is typically used when buying property at auction or when a property chain has broken down.
Borrowing a bridge loan allows the borrower to purchase a new property without having to wait for the sale of their existing property.
The borrower can then repay the bridge loan when their existing property is sold.
Interest rates for bridge loans can be higher than traditional mortgages, but they can provide a useful solution for property purchasers who are in a hurry to secure a property, or who need a short-term cash injection to complete a property transaction.
How do I get a Bridging Loan?
The loan amount is usually based on the equity in the current property, and the funds are used as a down payment for the new property. Since bridging loans are short-term, they often have higher interest rates than traditional mortgages.
The loan to value (LTV) ratio, which refers to the proportion of the loan amount compared to the value of the property, also tends to be higher for bridging loans.
This is because bridging lenders are taking on more risk by providing funding for a shorter period of time.
Borrowers must typically provide collateral (usually the property being purchased) to secure the loan.
Once the new property is purchased and the sale of the old property is completed, the borrower can repay the bridging loan with funds from the sale.
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How much would a Bridging Loan cost?
The cost of a bridge loan can depend on several factors, including the amount borrowed, the loan term, and the lender’s fees and interest rates.
Because bridge loans are considered high-risk, lenders often charge higher interest rates and fees than they would for a traditional mortgage.
The interest rates for bridge loans may range from 6% to 10%, and lenders may also charge origination fees, appraisal fees, and closing costs.
In general, 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’s value is appraised at £500,000, for example, a borrower could potentially secure a bridge loan for up to £425,000.
The length of the loan term can also impact the overall cost, as longer terms will typically require more interest payments.
It is essential to carefully review the terms and fees of a bridge loan before accepting an offer to determine the total cost of borrowing and ensure that it fits within your budget.
How do I get a Bridging Loan?
To get a bridging loan, you need to approach a lender or a mortgage broker, and you will need to provide a detailed plan outlining how you will be able to repay the loan within the agreed timeframe.
The lender will also assess the value of the property being used as collateral to determine the amount of the loan.
It is important to note that bridging loans generally carry higher interest rates compared to regular mortgages, so be sure to carefully consider the cost involved.
You may also want to consider consulting with a mortgage broker to help you find the best bridging loan deal that fits your specific needs.
The experts at GPS Financial can offer a range of different bridging finance including:
- 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
- 80% Loan to Value (LTV) Bridging Loans
- 75% Loan to Value (LTV) Bridging Loans
Why choose GPS Financial
Created in 2011, GPS Financial strived to eliminate the challenges associated with handling documentation and inaccurate information associated with obtaining a mortgage for your property.
You can relax and have peace of mind knowing that we are actively seeking out the ideal financial solution for you and handling all aspects of the process.
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’s team consists of approachable brokers with vast knowledge and expertise in the field. We have access to all the top lenders, guaranteeing you receive the most value and best possible service.
Whether you need a bridging loan while your Nationwide mortgage is being processed or to develop a property so it qualifies for a standard mortgage, GPS Financial can help!