Outstanding! I found the house of my dreams but with little hope of raising the multiple mortgages I needed to buy it, been with my bank for 40 years and they were not interested at all, fortunately I was introduced to Edward at Adivas who raised 3 mortgages in under a month with very reasonable monthly payments, he also did it with a calm manner and really easy to understand paperwork.
Lenders have their own criteria on what they would consider a large loan. For us, it is anything over £1,000,000 as this is where many private banks open their doors and can offer highly competitive lending terms.
Bridging finance is typically required for a shorter period of time compared with a conventional mortgage. It can be used for a wide variety of reasons, from an asset purchase, business investment, property acquisition, and school fees.
As the term of the loan would be typically up to 12 months, the cost of arranging the loan can be substantial when factoring in the total cost. It is imperative that the total loan cost is carefully considered when deciding on the most appropriate lending solution.
For high net worth clients, bridging finance could be arranged across various assets, such as numerous properties or liquid assets, such as bond and stock portfolios, this is called a lombard loan and can attract minimal lending margins.
How interest is charged
It is key to understand how a bridging loan will be maintained.
Interest on bridging finance can be paid in the following ways:
Serviced: just like an interest-only mortgage, the loan interest is paid for on a monthly or quarterly basis. At the end of the term, the original loan amount will need to be cleared but the mortgage interest will have already been paid.
Rolled up: No interest payments are due during the loan term. The monthly interest is added to the loan amount and interest is typically compounded.
Retained: Interest is calculated at the beginning of the loan. No monthly payments are due but the lender provides the required loan plus the calculated interest when the loan commences, this increases your total borrowing cost as you have borrowed all the required interest even if this will not be used.
Which lenders offer this finance?
Large bridging loans are available via specialist lenders and Private Banks.
These lenders can be part of a high street bank, building societies, backed by funds or family offices.
Many do not actively promote themselves to the public and work with carefully selected broker partners.
How much can I borrow on a large bridging loan
There is no loan amount limit on a bridging facility. However, the lending sum will be limited by various factors:
Lender’s own limits
Value of available security
Strength of the proposed exit strategy
Ability to service or provision for the interest
How long does it take to arrange?
We can arrange and complete large bridging loans in a matter of days, but for the most competitive loans, up to 2 – 4 weeks is normal.
Speak with an expert
We obtain the best possible Bridging Finance terms by using our own in-house analysis tools in combination with our extensive database of lender contacts.
We offer a personal service and you deal with an expert who can understand your needs and deliver accurate solutions in a timely manner.