High
Speed Large Bridge Loan Finance
High
Net Worth Client
If
a client has a good credit rating and is wealthy,
in the form of tangible assets, high income
or a valuable property owner then they will
be able to obtain a big bridging loan which
has a very fast completion time.
This
high speed short term finance maybe used for
the purpose of an auction purchase for a home
or investment property. For potentially down
sizing to a smaller house or if there is a need
to break out of a chain of buyers and sellers.
Prime
bridging maybe used for a property portfolio
purchase. The fast time it takes to source the
finance can be the difference between achieving
a good deal or losing an opportunity.
There
are no exit fees which in some cases can be
quite considerable so this keeps costs down.
There are no margin costs either so for example
some bridging lending will load the valuation
and solicitor costs in order to make extra profit.
And there are competitive low rates o the monthly
payments. This combination makes the deal as
a whole a quality financial product.
There
is normally an entrance fee along with the basic
valuation and legals costs. An exit strategy
would normally be the sale of a property or
monies to be received soon after the short term
lending is obtained.
This
product can be FSA or non-FSA regulated, so
for an example a purchase of buy to let at auction
would be non-FSA. However if someone was in
a long chain to sell their home and move into
a new home and this was effecting the time it
took to purchase then a short cut would be via
a bridge this then would be FSA regulated.
Bridging
may also be used for payment of bills, this
could be as large tax or VAT bill. It might
also be used in order to free up cash flow.
Sums of borrowing can be for several million
if the underwriters are content that the loan
can be serviced and their risk is low by having
good security.
Bridging
Loan
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