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Secured Bridging Loans
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A secured bridging loan
uses the new property as collateral on the credit,
effectively being able to repossess the property in the
event the credit is not paid. This type of loan is a
specialty credit offered by many banks and other lending
institutions. It offers quick money to pay for new
property when the sale of the current property is not
yet completed.
This type of advance is relatively easy to obtain. The
applicant must be a UK resident and be 18 years of age
or older. Many banks and lending companies throughout
the UK offer this type of advancement. Often, the
application and approval process is relatively fast and
easy. The new mortgage is used to validate the
information. You will also need to supply complete
information about the property including a copy of the
recent appraisal. This ensures that the collateral will
cover the credit amount requested.
Here is a guideline of what is needed when applying for
a bridging loan that is secured.
A copy of the new mortgage - The most important piece of
information will be the new mortgage. This is the basis
for the new credit request and the lending company will
find out much of what it needs to know from this
document.
A new or recent appraisal on the property - Another
important piece of information is the appraisal on the
property. The lending company or bank needs to be sure
that the credit amount is more than covered by the
property value in case the property needs to be
repossessed.
A statement of how much money is needed to borrow - Be
sure of the amount of money you need to borrow with a
bridging loan that is secured. This can include
additional funds if you need them for other things, such
as bill payments. Just remember that the total amount of
your loan cannot exceed certain guidelines, usually 85%
of the property value.
A copy of the sales agreement for the old property or an
appraisal of the old property along with sales
information. If the current property has a sale pending
will make it easier to obtain the bridge loan secured.
This ensures the lending company that the borrower will
soon have the funds available to repay the credit. If
the home is not yet sold, be prepared to show the
current market value as well as values and time frames
of similar properties in your area.
Bridging
Loans
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| Who's Suited |
- Purchasing
property at auction.
- Property refurbishment or conversion.
- Chain breaking mortgages.
- Homeowners who have been or about to be repossessed.
- Funds required within days not months.
- Short-term finance for business purposes.
- Commercial property purchase and refinance. |
| Features |
- 100% LTV
Available.
-Market leading rates from 0.75%.
-1st charge or second charge equity release. |
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