Bridging
Bridging is essentially property / asset backing lending for the short term. The borrowers age, income and credit profile are largely ignored. The Financial Conduct Authority does NOT regulate Bridging Finance.
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Bridging lending has now become mainstream. The rates have almost halved and its now a very competitive marketplace.
Bridging lending comes with a stark warning that you can lose your property very easily. The lenders do not make much profit from the lending but more from default penalties and default interest. You would be foolish to breach the terms of a bridging loan and should enter into one ONLY if you know you can exit before the end date. Whilst it is possible to renew an arrangement its frightfully expensive. The charges are eye-watering.
Used properly this type of loan is a great way to acquire an asset quickly and then re-finance it within the timescales to a more conventional lending source. It us used for time critical deals and where conventional lending isn’t available. Builders, developers and end users use these loans very effectively. They can also be used for bridging the gap between the sale and purchase of a property.
Why choose us?
Here are a few reasons to choose Chess Mortgages.
Experienced advisers
We’ve been advising clients on mortgages for over 40 years.
We move fast
No need to wait; we respond & process applications quickly.
Whole of market
We scour UK lenders, private banks & offshore lenders for deals.
What you need to know...
The rates vary from 0.5% per month to around 1% per month. Lenders fees are around 2% and the applicant also pays for the valuation fee and both sets of lawyers. Where the property is non-residential or if the loan is not on a first legal charge basis then these rates can be higher.
Lenders will consider lending up to 75% LTV and then deduct the interest for the period of the loan. You can also select to pay the interest monthly.
You will be in default so expect heavy penalties and charges. You run the risk of a LPA Receiver being appointed (at your cost) who can take control of the property and sell it to recoup the loan.
Yes if its for business purposes. If not then it falls under the FCA rules and will be regulated. An exit route must be there eg sales or refinance and proof is needed by the lender.
What our clients say...
