What are some viable exit routes for bridging finance?
We’ve got a team of brokers with years of experience in the bridging finance and commercial mortgage industry. They know what’s needed for a successful application process and one of the things most companies providing mortgages and bridging finance will require is a viable exit strategy.
An exit strategy in simple terms is how you plan to repay your loan on time. For property developers or investors this usually comes in the form of a business plan or a timeline of when you expect to be able to repay your bridging loan. For example, if investors buy a property at auction and don’t have enough in savings accounts or in cash to pay the money within 28 days, or if the property is uninhabitable and doesn’t qualify for mortgages, then investors will take out unregulated bridging. They will then be asked to show a plan of how they will renovate the property to qualify for mortgages in time to pay the bridging loan.
What assets can I get a bridge on?
Most lenders in the UK will want some kind of property as an asset to secure your loan against, however, this varies depending on circumstances and your development. We’d advise you to contact us and speak to one of our team.
Both commercial and residential properties are usually acceptable but if you have other assets with a good re-sale value these may be considered.
Can I roll up interest payments?
Most of these type of loans don’t actually expect you to service the interest monthly and will usually offer a range of options for the user.
One option is to have the interest taken out of the initial sum before it’s transferred over to you removing the need for you to service the interest monthly, and secondly you can opt to pay the interest in a lump sum at the end of the term which allows many of our clients piece of mind that they can get on with their development without having to worry about making monthly interest payments.
Again, this will vary depending on the lender and it’s worth getting in touch with a member of the team to discuss this as we have a large and diverse panel of companies that provide this type of finance and the chances are we’ll be able to find exactly the right fit for you whilst helping you with your project from start to finish.