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Jargon Buster - #Unregulated #Bridging #loans Unregulated bridging finance is a short-term, property-backed loan which is designed to 'bridge' a gap in funding. A loan is unregulated if it is secured against a property that you have never, and will never reside in.

Jargon Buster - #Regulated Bridging loans If you apply for a residential bridging loan it will be automatically regulated. A regulated bridging loan relates to securing a loan against a property that is currently, or will be, occupied by the owner or an immediate family member.

Jargon Buster - #Unregulated #Bridging #loans Most #bridging #loans are offered with a loan to value (LTV) ratio of 70 to 75% including the rolled-up/retained interest (the gross loan amount), so you will need a #deposit of at least 30% to 35% of the property's value

A bridging loan is a #short-term loan which is secured against property or land. They’re designed to be set up quickly, usually in 7-14 days. They’re designed to fund a gap between 2 events taking place, for example, funds being required and the property being sold.

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Jargon Buster - Unregulated Bridging #Commercial #bridging loans tend to come with higher interest rates, with rates of 0.65-0.95% being common. #Bridging #finance for #land is usually priced at 0.95%-1.25%, depending on the strength of the application.

Jargon Buster - #Bridgingloans The costs that you’ll encounter can be broken down into two main subcategories – the #interest #charged by the lender, and the #additional #fees. Some fees are payable to the lender, while others are paid to other professionals involved.

Jargon buster - How is the interest paid? Understanding how #bridging #loan #interest is #charged is an important step when considering taking out bridging finance. #gofinancialservices #bridgingloans

Jargon Buster - #Bridgingloans #Equity refers to the amount of value held in a property that belongs to the owners, debt free. #Equity can be calculated by deducting the mortgage amount from the value of the property.

Jargon Buster - #Bridgingloans #APR (annual percentage rate) is the annual interest rate charged for borrowing. It includes other fees and costs to give a ‘true cost of credit. APR is a metric used to measure the cost of a #bridging #loan.

Jargon Buster - #Bridgingloans #arrears #Arrears are payments that have failed to be paid when due. Your exit strategy is simply how you’ll repay the loan. Popular exit strategies are either the sale of the property, #refinance to a #mortgage or buy-to-let mortgage.

Jargon Buster - #Bridgingloans #Criteria #Residential, #commercial property or #land acceptable. Available to individuals, #partnerships, #LLPs, #Ltd companies, #offshore companies, foreign nationals and pension funds. Available in England, Scotland, Wales and Northern Ireland.

Jargon Buster - #Bridgingloans #Heavy #Refurbishment is the name given to a significant refurbishment of a property. Different lenders have slightly different definitions of the term, but generally, some structural work would be required for a bridging loan.

Why are lenders being forced to raise Buy-to-Let interest rates? lendinvest.com/blog/why-are-l…

Bridging the gap - #BridgingFinance Providing our client with the option to review in 12 months, rather than making a 5-, 7- or 10-year commitment at a time of high prices, is one of the solutions #bridging #finance provides. Book a FREE Discovery Call: bit.ly/3E8hJ37

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