Another buy to let bridging loan

We recently received an enquiry from one of our introducing brokers to ask if we could provide finance on 4 freehold flats. The clients were looking to re-finance their current bridging lender as well as raise additional finance to convert the ground floor of the building into another 2 flats. The lease holds to each of the flats were due to be created after we had lent on the property in order that the clients could re-finance our loan with a standard buy to let high street lender.

Upon referring to our solicitors, we were advised that we could indeed take a charge over the freehold of the building and we have just issued out our formal offer letter, offering the clients £250,000.

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Fund your property development plan with a bridging loan …

This just proves that there is a solution if you just think outside the box…

Just recently a client came to us who wanted to build a detached property, had found the perfect location and had their build costs, end value and marketing all worked out, planning and everything ready to go. The only challenge they faced was funding!!!

They didn’t have the funds to purchase the land and only some money to put towards the actual build, and as we all know the high street banks aren’t lending the way they used to.

After speaking with the client and going into a bit more detail, we suggested that they agree with the vendor (who had been trying to sell the land for some time) to pay 50% of the land value day one and the remaining 50% on completion of the property.

The vendor agreed and we were able to help fund not only the 50% land value day one, but 100% of the build costs. The clients have since completed the property and paid the remaining 50% and the house is on the market now and the client’s look to make a nice profit.

Happy days!!

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Property Development in Staffordshire

We have had an enquiry come through last week from one of our introducing Brokers for a development project in Staffordshire of 2×3 bed semi-detached properties.

The client had been to one of our competitors and had been provided with a quotation based on a loan of £130,000.The client was quoted a rate of 1.75% per month for a term of 9 months. The initial amount offered was £30,000 for the foundations of the properties; however the client was advised that for the first 3 months of their loan they would be charged interest on the full £130,000 rather than the initial £30,000 draw down. This would have ended up costing the client an additional £2,000 per month for the first 3 months of their loan.

We responded to our introducing broker that same day with details of our Proposed terms. We were able to offer the client a rate of 1.65% per month and offered a term of 12 months; however there would be no additional penalties to the client should they wish to settle after 9 months. We were also able to confirm with our introducer that interest is only payable on the amount which the client has borrowed rather than the full loan ie: if the client borrowed £30,000 initially then they would only pay interest on that £30,000 until they are ready for their next set of funds.

The client decided to proceed with us and we have just issued our loan offer, Subject to the valuation being received. All of this happened within the space of a few days as the client wanted to move quickly.

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65 Bath Street, 1st floor (right)
Glasgow G2 2BX, Scotland
Tel: 0141 332 8884
Fax: 0141 333 0733