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Bridging Finance is a short-term form of borrowing. Bridging Finance is secured over property by way of a first mortgage or second charge. Bridging Finance can be especially useful to help where there may be a temporary cash shortfall.
Here we explain how Bridging Finance works, and answer some of the many questions that arise regarding this subject. Finally, we offer details as to how we might be able to assist you with Bridging Finance.
Table of Contents:
So, as we established in the introduction Bridging Finance is a form of short-term borrowing that is secured over property through a first mortgage or by way of a second charge. Bridging Finance can be very handy to assist in instances where there might temporarily be a shortfall of cash.
There are several aspects of Bridging Finance that are important to understand and consider, the following section provides answers to some of the most important questions relating to Bridging Finance:
Bridging Finance can be used for virtually any purpose, and this includes:
Generally, Bridging Finance is available over a period of between 1 and 12 months, although in certain circumstances, they may run over a longer term.
No, this is not necessary with Bridging Finance.
Apart from the valuation fee, there are no up-front payments required. You can make regular monthly payments if you wish, or alternatively, you can opt not to make any interim payments, and "roll-up" the interest charges and repay the loan and accrued interest on completion of the transaction.
Bridging Finance usually operates on a monthly interest charge, and the rate of which starts at round about 1% per month. The cost of course will be decided on a case-by-case basis.
Most lenders will accept capital payments during the term of your bridging finance. This will reduce your balance and therefore your interest charges.
Yes! You can settle Bridging Finance at any time.
The lenders providing Bridging funds will lend on most types of residential, commercial, and semi-commercial property or land.
Building and Development funding is also readily available for the purchase of land and/or buildings, especially for:
At Shire Direct we appreciate that with Bridging Finance, you're likely to require a fast decision. So a telephone call to one of our specialist advisors will ensure we provide you with a rapid in-principle decision. Bridging Finance can be arranged, offered and completed very quickly. With this type of product we realise that there is usually some form of urgency!
Yes we can! We can cover the loan balance in the event of your death, as well as providing payment protection if you are unable to work due to accident, sickness or unemployment (ASU).
Most lenders will accept capital payments during the term of your bridging loan. By paying-off lump sums during the course of your bridging loan, this will reduce the interest you will ultimately pay, as interest is usually calculated on a daily basis.
It is possible. However, the owner must be a party to the transaction.
Yes.
Before entering into a Bridging Finance agreement, you should be certain that you have an "exit route"! In other words, you must be sure you will be in a position to repay the loan, usually within a six-month period. Bridging Finance can be extremely useful, but its designed only to be a temporary solution to aid a cash shortfall, and can be expensive in the longer term. You should also be aware of the fee charging structure.
We also arrange mortgages, and secured loans, and if required, we are usually in a position to convert bridging funding with conventional loan or mortgage products, subject of course to your status.
Hopefully, we've managed to answer any questions you may have had about Bridging Finance. Here at Shire Direct, we have fully embraced the Financial Services Authority 'Treating Customers Fairly' initiative. This ensures that our customers receive only suitable and appropriate advice and recommendations, in a manner that is clear, fair and not misleading.
Shire Direct Mortgage Advisors will ensure that they fully understand your circumstances, needs and aspirations before giving any advice or recommendation. Similarly, the Advisor will also make sure that you understand the terms of any arrangement and how much will be charged. You'll find our approach is friendly, helpful, professional and unstuffy!
Our aim is to help in any way we can, so why not give us a call to see if we can help you with Bridging Finance. Our Freephone number is 08000 282 281 and lines are open 7 days a week from 8am until 10pm, or enquire online anytime.
Mortgages/Remortgages: The overall cost for comparison is 9.8% APR. The actual rate available will depend upon your circumstances. Ask for a personalised illustration. APR variable and based on a usual case. Most customers are likely to receive a lower rate or the same rate as our overall cost for comparison rate - learn more about APR.
There are no upfront broker fees.
However, a fee may be charged on successful completion. An indication is that on conforming cases (straightforward applications with no or minimal adverse credit) a fee may be charged of up to 1% of the amount advanced, typically £795 and will depend on your circumstances. For non-conforming cases (where case research and processing may be more complex due to adverse credit or unusual circumstances), a fee may be charged of up to 3% of the amount advanced, typically £1,995.
Homeowner Loans: Rates from 8.9% APR variable, but typically 13.9% APR variable. Most customers are likely to receive a lower rate or the same rate as our typical variable rate - learn more about APR. Shire Direct also has a range of non-conforming loan plans with rates up to 19.9% APR. These plans are designed to help those who may have a more difficult credit history, including CCJ's and credit arrears, IVA and bankruptcy problems.
A broker fee of between 0% and 10% of the loan advance may be charged for arranging a secured loan.
All loans subject to status and secured on property.
The actual rate available will depend upon your circumstances. Written quotations on request.
THINK CAREFULLY BEFORE
SECURING OTHER DEBTS AGAINST YOUR HOME.
YOUR HOME MAY BE REPOSSESSED
IF YOU DO NOT KEEP UP REPAYMENTS ON A MORTGAGE OR ANY OTHER DEBT SECURED ON IT.
Adding existing debt to your mortgage will increase the repayment term and overall cost.
Are you worried and becoming stressed because you are having problems getting a mortgage or remortgage? Worry and stress no more! Here at Shire Direct we provide tailor made mortgage solutions to suit you, and can usually help with all kinds of circumstances including...
Remember, we're here to help, and would love to hear from you!
Claim £100 worth of Argos Vouchers upon completion of your transaction throughout 2008. Terms and conditions apply - see our Vouchers Special Offer page for full details.
Shire Direct and Shire Direct Mortgages are trading styles of Shire Processing Centre Limited which is
Authorised and regulated by the Financial Services Authority in respect of regulated mortgage products and general insurances.
Registered No: 302389. Commercial funding and Secured Loans are not regulated by the FSA.
Licensed Credit Brokers. Consumer Credit Licence Number: 349999.
Shire Processing Centre Limited is registered under the provisions of the Data Protection Act by the Information Commissioners Office: Registration No: Z6795249. Registered in England & Wales. Company number: 2732202. Telephone calls may be recorded for training, monitoring and security purposes. All applicants must be aged 18-years or over.
