What Do You Understand By Bridging Loan
You have heard about many loans against property, but do you know about bridging loan. Let us know what is bridging loan. A bridging loan or finance is defined as a short-term loan available on the property. It is generally used for instant financing for property investment, renovation and development. The loan is developed for the project’s progression or to complete the finance requirement within a tenure of 12 months. One can arrange a bridging loan instantly and utilize it by person and organization for any reason until they can put other funds.
Esteema is a reliable capital financing firm that helps individuals and business in arranging bridging loan for property. Whether you plan to buy a property, construct a property, or renovate it, a bridging loan is the best way to get funds immediately. You can use bridging financing in commercial and residential property transactions. Buyers, real estate developers and sellers can apply for a bridging loan.
How Esteema Bridging Finance is better
We are the foremost player in private financing, and we have earned the immense prestige of becoming a lender in the market. That is why we can arrange funds within a couple of hours. The applicant can get funds within a few days and don’t have to wait for several weeks. Esteema is a transparent and genuine financing company. We follow all the rules and regulations determined by the financial regulators, which shows that we are a responsible and sincere money lender. Hence you can contact us to get a bridging loan for property instantly.
You can expect a secure and economical bridging loan for a property with no hidden cost involvement or conditions for hassle-less processing. Furthermore, we help to make loan arranging facility with simplicity and less complicated.
We provide safe & low-cost bridging loans without any hidden costs or terms for complete peace of mind. Additionally, we also assist to arrange the exit loan facilities from the bridging loan to ensure a complete end to end solution for the client.
ESTEEMA BRIDGING FINANCE TERM | OTHER LOANS | |
|---|---|---|
| ✓ Any Loan Amount | 100K to 100M | Restricted |
| ✓ Any Purpose | Purchase, Refinance, Debt Settlement, Refurbishments, Developments, or any legal purpose | Restricted |
| ✓ Any Real Estate | Residential, Commercial, Mixed, Land etc | Restricted |
| ✓ Any Borrower | UK or International (Personal or Any SPV) | Restricted |
| ✓ Any Location | UK, Europe and Major Location Globally | Restricted |
| ✓ Any Background | Prime or Subprime (Adverse Credit) | Restricted |
| ✓ Any Term | 1 day to 36 Month (extendable) | Restricted |
| ✓ Any Special Reasons | ✓ 48 hours’ financing for emergency purpose ✓ 100% with or without additional security ✓ Repossession stopped bridging ✓ Non-Status – Non-Recourse ✓ No maximum age ✓ Interest roll-up facilities or pay monthly ✓ No valuation bridging ✓ 1st, 2nd, 3rd, equitable and unilateral charges | Restricted |
Esteema Special Pricing
Standard Bridging Finance
Rates from:
0.49% pm
Up-To
80% Loan to Value
100% with Additional Security
Refurbishments Bridging Finance
Rates from:
0.49% pm
Up-To
70% Loan to Value
90% with Additional Security
Credit Line Bridging Finance
Rates from:
0.49% pm
Up-To
70% Loan to Value
.
Bridging Finance Guide
Bridging Finance Documents
Bridging Finance is of two types:
1. Status Bridging Finance: Borrower profile and his credit profile is also an essential factor. So all documentation is required about the borrower.
2. Non-Status Bridging Finance: Assets based (Collateral) finance for quick financing. Borrower profile is ignored. Non-Status Finance is a little more expensive than the status of Finance because of higher risk factors.
The following is the standard list of documents required for bridging finance for the Status-Bridging Finance
- KYC: ID, Address proof, Personal & Professional Profile, Credit Report for all the Borrower, Director, Partners & Major Shareholders
- SPV Structure: Directors, Shareholders, UBO, and the registered address ( UK or offshore)
- Money Laundering Documents: Assets & Liability Statements, Income & Expenditures Statements, Equity (deposit) proof
- Income proof (may be required): Last 3-year accounts/tax return, 3 Month Bank Statements (Personal & Business)
- Collateral: Full descriptions, brochure, valuation report (if available), tenancy schedule (if applicable)
- Purpose of finance: Purchase, Refinance, Restructure, Investments, Developments, Business purpose, Refurbishments
- Exit Strategy Proof: Some satisfactory proof/explanation about the loan to pay off?
Bridge Finance FAQ
How much bridging loan can I borrow?
You can borrow up to 75% against the single asset and up to 100% with the additional asset (1st charge or 2nd Charge)
Do I need an Income to get the bridging Loan?
Not necessarily as the loan will usually be for a specific purpose to plug a short term capital requirement with the release of capital from the sale of an asset being the means of repayment, income requirements do not exist in the same way as they do for mortgages and other loans.
Will I have to make a monthly payment for the bridging loan?
No, with almost all bridging loans you will only be required to make a payment when you close off the loan. The interest will be added to the loan each month, so the longer you hold the loan the more interest you will pay.
How to use the bridging loan?
It can be used for any legal purpose such as ‘quick purchase, finance restructuring, debt consolidation, repossession stopped or any legal debt settlement”.
Can my Adverse credit affect the bridging loan?
The non-Status bridging loan does not take into consideration your income & credit profile.
Lending decisions as the repayment mechanism will be the sale of an asset.
Is my home at risk, if I do not keep my repayment on time?
A non-regulated bridging loan is on investment property only. Your house is usually safe even for any non-repayments of the bridging loan because the lender recovers the loan from the sale of the investment property.
Bridging Finance Costs
The following costs should be considered at the time of availing the Bridging Finance:
- Arrangement Fee: The arrangement fee or the facility fee, is usually charged by the lender as a set-up fee for the loan. This is added to the loan.
- Exit Fee: The fee is payable to the lender when repaying the loan. This is paid on completion of the loan.
- Broker Fees: These are the fees payable to the Broker for finding the best lenders and managing the application to completion. This is added to the loan.
- Valuation Fees: This is the fee that has to be paid to the valuer, who shall be instructed by the lender to furnish a report on the collateral/project. This is paid upfront.
- Legal Fee: Usually, the borrower would have to pay the legal fee for their own solicitors as well as the lender’s solicitors fee. This is paid upfront.
Completion Timeframe
We always aim to bespoke the ‘Financing Time Plan and Finance T & C, to meet the individual requirement. Our standard indicative timeframe :
- Initial Finance Terms: We usually provide Initial Finance Terms within 3 hours.
- Emergency Finance: We can complete the finance within 48 hours in case of any emergency or distressing situation.
- Standard Finance: We usually complete Standard Finance within 3-4 weeks.
Notes: Financing time frame & Finance T &C are always subject to providing all satisfactory documentation, full credit underwriting, valuation and legal.
Jargon Buster
Please refer to the Knowledge Bank section for more information
Key Factors Affecting the Bridging Loan
Personal Profile
✓ Personal & Business Profile
✓ Credit Profile
✓ Experience & Track Record
✓ SPV Structure & Location
Collateral Profile
✓ Collateral Type
✓ Covenant Type
✓ Location
✓ Purchase Price Vs Market Valuation
Bridge Loan Exit Startgey
✓ Sales
✓ Refinance Option
✓ Other
.
Esteema Syndicate & Structured Financing Expertise provides the complete peace of mind. Please contact us in confidence for
‘Quick Decision – Quick Financing’
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