What is a bridging loan?
Short term loan secured on land or property with rolled up interest added.
What can I use a bridging loan for?
Bridging loans are usually used in legal purposes such as refinancing, purchasing and renovating.
What type of property can be used as security?
Most properties can be used as security whether freehold or leasehold, but must be in the UK.
How much can I borrow?
The amount you can borrow is based on the value of the property being offered as security, this can be property which you already own or property being bought. Most lenders will lend up to 65% loan to value on a 1st charge and 60% on a 2nd charge basis.
What is a 2nd charge?
A second charge can be obtained against the asset with acceptance from the 1st charge lender.
What is the minimum and maximum loan?
At Grosvenor Bridging Loans Limited we have no minimum or maximum loans
Can I borrow 100% of the purchase price?
Yes, you may borrow 100% of the purchase price if you have additional property or properties to offer as security.
How long can I borrow the money for?
Typically between 3 to 12 months.
Can I repay my loan early and or make capital reductions?
Subject to terms and conditions which have been mutually agreed at the start of the loan.
How much will a bridging loan cost me?
Asset and location dependant rates start from 1% and may rise to as much as 2.5% per month.
Can I add the interest payments to the loan?
Grosvenor Bridging Loans Limited allow you to roll the interest up into the loan.
What are the other costs?
Valuation fee on all properties offered as security, lenders arrangement fees, lenders solicitors fees and exit fees
Do I need my own solicitor?
We recommended all clients seek independant legal advice
I have a bad credit history, arrears or CCJ’s does this affect my application?
Grosvenor Bridging Loans Limited will look at all applications with an open mind
I am self employed or have no accounts does this matter?
Predominately we lend on a non status basis.
Can a Limited Company take out a bridging loan?
Yes, but in most cases the directors will be required to give personal guarantees.
Are bridging loans regulated by the FSA like traditional mortgages?
If the lender is taking a 1st charge over your residential property then the bridging loan will be regulated by the FSA. If the lender is taking a 1st charge over an investment property or a 2nd charge over your residential property then it is not FSA regulated.
How long will it take to arrange?
We aim to provide an offer in principle within 24 hours, the execution of the loan can take up to 10 working days