Bridging loans are a great option for individuals looking for quick funding for purchases or business ventures. This interim finance solution provides borrowers with immediate capital in the form of a short-term loan, which is interest-only and can be secured by the purchased property or a currently owned property.
Jubilee is available to provide clients with various quick bridging loan options to meet funding requirements and quickly assist with purchasing.
Fast Online Enquiry · No Broker Fees · No Ongoing Fees · Low-Interest Rates · No Credit Footprint
Services: Commercial Loans, Non-Status Loans, Residential Loans, Secured Loans, Auction Bridging Loans
Enquire About Bridging Finance Today
How to Apply for a Bridging Loan
To begin the application process, simply contact Jubilee with your financing inquiry. It is essential to have crucial information available when you call, including name, address, security property’s address as well as the property’s purchase price, appraised value, solicitor’s information and how much funding is being requested along with your preferred repayment method.
When available during the initial call with Jubilee, this information can help ensure a quick and efficient loan application process. Once the initial application has been completed, we will work quickly to help complete the financing request.
An initial application assessment can be completed in as little as two hours, and a Decision in Principle, or DIP, is usually available within 24 hours of applying. Once the borrower has reviewed and agreed to the loan terms, a certified copy of the borrower’s passport and recent utility bill must be presented.
Before the application can be completed, the lender will also require the applicant to pay any initial fees or charges – these will be outlined in the Key Facts Illustration or lending proposal. Once these fees have been paid in full, the application will be moved into completion.
Once the work is completed, borrowers can usually expect disbursement of their funds within 7 to 14 business days. If financing is being used for a refurbishment, site plans, planning consent, and budget costs will also be required before completion.
Security Needed and Typical Terms of a Bridging Loan
The first charge over freehold or extended leasehold properties can be used as security against a bridging loan. For companies or businesses, lenders may also require personal or debenture guarantees. Bridging loan terms will vary depending on the unique situation surrounding the loan.
In general, bridging loan repayment terms range from 30 to 90 days but can be extended if the financing is used for a development project. This extension can have terms of up to 18 months, which will allow the borrower to complete the project and arrange additional financing or the sale of the property.
Upfront Fees Incurred with Bridging Loans
There are some upfront or initial fees associated with obtaining bridging finance. Since lenders incur some costs when processing an application and arranging a loan, they look to ensure the applicant covers these costs in the form of initial fees.
These charges are usually outlined as application, valuation, or legal fees. Jubilee provides clients with quotes for all applications that detail these costs and ensure applicants understand how the charges are calculated.
Loan Amounts Available through Bridging Finance
The amount of a bridging loan will vary from one application to the next and is based on several criteria. Depending on the security’s valuation, financing amounts can range from £25,000 to over £50 million.
Bridging loans generally reflect between 65 per cent and 75 per cent of the security property’s value. Project details will also affect the loan amount—purchase, development, and refinance projects will all carry different values to lenders.
Rates and Charges Associated with Bridging Loans
Rates and charges will apply to all products even larger bridging loans, but the amount will be dependent on specific details of the proposed project and some other factors. The type of property, its location and current value, the loan to value or LTV of the property, and the borrowing terms will all play a role in deciding the rates and charges.
Jubilee will commission several lenders with the proposed application and project to ensure clients get the best financing deal to meet their needs.
Bridging Loan Repayment Penalties
Bridging loan lenders usually specify a 30-day repayment period for this type of loan. Generally, the borrower will incur no penalties if a full loan repayment is made after this minimum term expires. Make sure to reference the offer documentation carefully when considering quick repayment – any early repayment penalties and minimum terms information will be found in the loan detail documentation that we will provide to the client and explain before completion.
Quick Bridging Loans Offer Interest Payment Options
Lenders offer the option to add interest payments to the total amount of the bridging loan. This is usually presented in two ways: lenders offer an interest roll-up option or subtract the interest payments from the loan amount.
The value of the loan requested and details of the proposed project will determine which, if any, of these offers are presented. Jubilee will also outline and explain this information in the loan detail documentation.
Have you had too many bad property deals and need a clear start?
If you have too many mortgages close to your rent and have run-up credit cards and personal loans renovating a property, an IVA is a great way of clearing personal debt. Many people seek to clear debt through an IVA as they can only pay their creditors what is practical for their circumstances.