Case study 1 – The Downsize (£1.6m loan)
Mr and Mrs B owned a property worth £3m and wanted to downsize to a new build property they were buying at development stage for £1.6m.
In order to secure the new build property, Mr and Mrs B needed to pay a substantial deposit in a short period of time. They put their current house on the market, but even in a more confident market, they couldn’t rely on an immediate sale and didn’t want to risk losing the property they really wanted.
After reviewing their investments with their IFA, they realised encashment would carry punitive charges, their IFA then said they should give serious consideration to a bridging loan, which unlike a mortgage, can be funded very quickly
With a 1% set up fee and 1% per month charging interest rate which was rolled up, meaning Mr. and Mrs B did not need to find the monthly payments. Mr and Mrs B decided to proceed with the bridging finance for a term of 6 months and the loan was offered within 2 days of application. This gave Mr and Mrs B the assurance that they wanted to be able to complete their purchase within the allocated timeframe. They subsequently exited the loan through the sale of their residence.
Total loan advance: £1,632,000
Monthly payment (non serviced): £16,320
Exit fees £0.00
Total repayable: £1,648,320 (Rebate available on early repayment)
Case Study 2 – The Business Purchase (£225,000 loan)
Mr. I had the opportunity to purchase an existing and successful business for £225,000, the current business owner was looking for fast cash so was selling his concern at an attractive price.
Recognizing the opportunity was too good to miss, Mr I just needed to obtain the cash to allow for the purchase.Knowing a commercial mortgage would take too long, we examined Mr I’s other assets.Mr I owned a Buy to let property worth £800,000 with a £200,000 mortgage.
We were able to secure a second charge bridge at 1.25%, with a 1% set up fee but with no exit fees.
Mr I took a serviced loan, serviceable from the turnover of his new business and buy to let property, the loan facility lasted for 6 months, giving Mr I the opportunity to arrange and secure a commercial mortgage, in turn settling the bridging loan.
Total loan advance: £231,750
Monthly payment (serviced): £1969.875
Exit fees: £0.00
Total repayable inc. monthly payments: £233,719 (Assuming loan went full term)
Case Study 3 – The HMRC Bill (£49,000 facility)
Mr and Mrs C had a tax bill of £49,000 from the HMRC that they were unable to pay.They owned a semi commercial property worth £120,000 in Mid Wales.
Not wanting to raise money on their residence because they had a good 5 year fixed rate in place which was only 2 years old, they decided to use the semi commercial property as security.Despite their recent history of poor credit, the bridge was secured at a rate of 1.5% with a 2% entry fee and no exit penalty.
The loan was serviced from their existing business nd settled with a semi commercial mortgage arranged through us.
Total loan advance: £50,960
Monthly payment (serviced): £764.40
Exit fees: £0.00
Total repayable inc. monthly payments: £55,546.40 (Assuming loan went full term)
Our bridge products range from £10,000 to £25m plus
We can deal with UK based clients, ex-pats and foreign nationals.
Terms range from 1 month to 12 months typically, however in some cases we extend to longer term bridges lasting 3 years!
Rates typically start at 0.75% with average rates 1.25% per month.
Broker fees and lender fees vary.
Bridges can be used for any legal purpose.
Loans can be secured upon:
Buy to let/investment properties
Residential properties
Commercial properties
Developments
Semi commercial properties
Land