What’s the difference between a heavy and light refurbishment loan?
All bridging finance offers access to rapid funding, without complex or time-consuming paperwork. Light refurbishment bridging loans are a type of specialist loan used to plug a funding gap in the short-term.
How long does it take to get a loan?
It will usually take around a week, but sometimes a little less depending on the circumstances and the lender chosen. Regulated lenders will naturally take longer because of the checks that they perform. Less-regulated or unregulated lenders will set their own processes and criteria which can be faster.
The nature of heavy refurbishment bridging loans for residential properties is that they are very fast and easy to arrange
How are the funds released?
Funds will usually be released in two stages. The first will be upon the arrangement of the loan, in order to allow the works to begin. An inspection of the property will be taken out by the lender. The second wave of funding will be released upon re-inspection, to confirm that all works are in place as agreed
Each lender will offer something different. At Hank Zarihs, these are the typical terms you can expect to see from our large and experienced panel of specialist bridging finance lenders:
- Up to 75% LTV (the lower of PP or MV)
- Interest rates from 0.60% pm
- Maximum term of 24 months
- Flexible interest terms – choose to service it, roll it up fully or part roll-up
- 2% arrangement fee
- No exit fee
- Borrow from £250k to £50 million
Do I need a good credit score to take out a refurb loan?
There are non-status bridging loans available for this type of product too.
Some lenders will offer the necessary funds if the applicant has the right collateral or security in place, a clear development plan and a clear exit plan. Every lender has their own terms and conditions and we can help to find you the right lender and the right loan for your needs.
Why use Hank Zarihs Associates?
We are highly experienced in financial services and act as an intermediary for specialist property development and investment finance. Working with a panel of over 60 niche lenders – including private banks, pension funds and property funds – we match each customer with the right lender for his or her needs, leveraging our experience to secure the best possible deal.
We can help you to find the bridge loan, property investment loan or development finance that you need, even if you have been rejected by a different lender, or have been offered unfavourable terms. Contact us in the first instance for an instant assessment and alternative offers within the hour. We move fast and efficiently and complete most bridging finance transactions within just 3-7 days, and support you at every step of the way.