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Short Term Bridging Finance / Bridging loans

Short-term bridging loans can be quickly arranged on a completely 'non-status' basis, i.e. no accounts required, no income proof required and CCJ’s/Defaults considered.  A list of the applicants’ assets and liabilities will however be required and evidence of a firm source of repayment through either a property sale or an alternative offer of finance.

Complete a contact form or call 0115 9849800 to find out how our experts can help you to secure the commercial mortgage or other property finance you need.

Residential property: Up to 75% of Open Market Value. Rate 1.5% per month. Any purpose.

Commercial property: Up to 70% of Open Market Value. Rate 1.7% per month. Any purpose.

If the loan requirement is less than the maximum stipulated above, then better terms may be available.

Example of Commercial Bridging Loan Refinance

A long-established Yorkshire based manufacturing business took out an expensive bridging loan to fund the following scenario.

  • The business was losing money, and its clearing bankers wanted their overdraft back!
  • The company needed to downsize and relocate in order to continue.
  • The company owned a 2-acre site with old factory buildings on it.
  • As residential estates surrounded the factory site, the client obtained outline planning permission for 'residential' which hugely increased the value of the site to £2 million.
  • The client arranged a bridging loan facility for 6 months of £900,000 at 1½% per month (18% pa), and a 1% arrangement fee.

This repaid the clearing bank and gave the client much needed headroom whilst it considered whether to:

  • sell to a national House Builder
  • do a joint venture with a Property Developer

The bridging loan was fast approaching maturity and needed to be renewed. Sterling have now arranged to refinance the bridging loan with a specialist funder in the sector rather than renew with the existing lender. The following terms were obtained:

  • base rate plus margin 3%
  • interest roll up
  • arrangement fee 1%.

By the end of the agreed loan term of 6 months the client will have finalised its plans for the site and saved in excess of £50,000 in interest!

Complete a contact form or call 0115 9849800 to find out how our experts can help you to secure the commercial mortgage or other property finance you need.

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