Interest rates for bridging on commercial and semi-commercial property
Interest rates on this type of bridging loan can vary depending on a multitude of factors including the term of the commercial bridging loan, the deposit you have available and your track record of delivering on property development.
As we have many years worth of experience in the bridging loan industry we have built a number of exclusive relationships with lenders who know that we always deliver high quality applications that meet their standards. If you have a portfolio of completed works then this will hold you in good stead as our panel of lenders may ask to see your portfolio.
Ultimately, it will depend on your risk profile as to whether our panel fund your property or bridging loan. They will consider your proposal and what your exit strategy looks like for repaying the loan on time. If they think that your history and plan look good then it’s likely that they’ll agree to fund your property or bridging loan.
Investors often our experienced bridging loan brokers as they’re able to help them at length with their property projects and bridging loan applications. They’re able to help you find out what sort of interest rates you may qualify for depending on your circumstances.
What can commercial bridging loans be used for?
Most people use these types of bridging loans to fund property projects, usually in a commercial capacity. The actual definition of that can be quite wide ranging and the money can be used to fund a multitude of things such as cashflow, purchasing property, renovation and restoration or business expansion.
In terms of security you’re likely to need a commercial property or other existing property to offer as an asset and security for the loan.
Once you’ve met the criteria for bridging loans, the lender will likely ask you for some kind of business plan or description of what you intend to use the money for. They’ll want to know, for example, whether you want to use the money for building materials, how much you intend to spend and on what. They’ll then want to know, for example, once you’ve used those building materials at what point your property will then be ready for a mortgage and, subsequently, repaying your bridging loan.
Again, however, our panel of lenders are experienced and take each case on its own individual merits so the best advice we can give at this point is to speak to a broker who can discuss this at further length with you. They’ve helped to fund millions of pounds worth of property projects over the years and they’re more than happy to go over the details of your application with you.