A Bridging loan or Bridging Finance – is an urgent financing option for property investors, which allows them to take advantage of last minute investments that would have been impossible using a regular bank loan. Knowing this type of funding is available, gives an added advantage when in negotiations for a property deal, especially at auctions.
Because the lending for a bridging loan is purely non status, it means the most important part of the process is the property being used as security. The amount that an investor can borrow is directly linked to the type of property, its location and what it is used for. As an example, a residential property would typically allow for a Loan to Value (LTV) of seventy percent of the property’s Current Market Value (CMV), whereas a commercial unit in the outskirts of town may only be able to attract an LTV of sixty percent.
Another important factor when considering a loan is the strength of the applicant, and whether they have any direct experience in the market they are choosing to borrow in. It is much easier for an experienced investor with reasonable means to borrow money, than a first time investor with no collateral or assets behind them, especially in today’s market.
Therefore, although loans can be offered on a non status basis, there are a number of options to be considered. However, because the amount of loan is directly linked to the value and type of property, it means that applications can be made on a self cert basis from the self employed, because no proof of income is required.
About Pure Bridge:
Through using a network of wealthy private investors, Pure Bridge, sources, package’s and underwrites loans over £500k for property investors who wish to acquire short term finance for their property projects. This unique funding model allows Pure Bridge to offer funding without the need to deal with any of the high street banks, or any of the onerous due diligence requirements that the big banks require.
For more information on the bridging finance options that are available, please visit: www.purebridge.com or call: 0843 289 3858 (local rate).