FIND FINANCE FAST RESIDENTIAL BRIDGING GUIDE

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1 BRIDGING & FINANCE BROKERS FIND FINANCE FAST RESIDENTIAL BRIDGING GUIDE Bridging loans inside 48 hours Call us anytime

2 Introduction If you need short-term finance, Rapid Bridging can help. There are numerous reasons why you might need a bridging loan. Which applies to you? Buy residential property Avoid a chain breaking Self-build a property Prevent bankruptcy Buy unmortgageable property Buy non-standard property Something else Buy before you sell Buy property to let Convert a barn Buy discounted property Buy derelict property Buy property at auction It doesn t matter what age you are, whether you are employed or self-employed, or if you have credit problems. Anyone with equity in UK property or land can apply for a bridging loan. Each application is unique and considered on its own merits. Copyright 2015 All rights reserved. No part of this publication may be produced or transmitted in any form by any means mechanical or electronic including photocopying and recording or by any information storage and retrieval system without permission in writing from the publisher

3 What is a bridging loan A bridging loan is a short-term finance option that bridges the gap between spending and receiving money. For example, you can get a bridging loan to refurbish a property and increase its value. You then sell at a profit to repay the loan, or take out a standard mortgage. Note that a bridging loan is based on the market valuation not the purchase price. The interest rate is usually higher than a standard mortgage, because the lender incurs greater costs due to having to provide a bespoke loan quickly. Also, they don t benefit from long-term interest income. It s essential to have a robust exit strategy before you take out a bridging loan. We can help with that. Speed is of the essence You ll probably be under pressure to complete the deal within a tight deadline. With Rapid Bridging, you ll get an immediate decision in principle, and funds available in as little as 48 hours. Obviously, any lender wants to be sure they will get their money back. With a standard mortgage, there is time for the lender to build up a relationship with you. They can research all the information they need to develop trust in you and decide on what deal to offer. With a bridging loan, there is no such luxury of time. Usually, the money is needed within a couple of weeks, so trust has to be in place from day one. Whether for property purchase or refinancing, everything has to be turned around very quickly including the title deeds, valuations, and Legals. It can be quite stressful, a bumpy ride, or even go horribly wrong. We have robust relationships with the lenders and they trust us, especially when dealing with complex cases or those that have been turned down before. We know how to talk to underwriters and present a case that they ll accept. Even other brokers come to us to arrange deals they can t handle. Lenders know we work alongside our clients, helping you create a robust exit strategy, and staying with you throughout the journey. That s why, with Rapid Bridging, your finance won t be delayed. You can get a bridging loan for any period between one month and 12 months. We recommend you include some leeway in the loan term you request at the start, just in case

4 Understand the process A bridging loan usually takes 7 to 28 days but can be quicker. Here is the usual process: You instruct a solicitor with experience of bridging loans You tell us why you want a bridging loan, what security you can offer and your exit strategy We discuss your options and identify the best lender for your situation We send evidence to the lender outlining your case Lender considers your current portfolio and potential purchase to ensure you have sufficient equity as security for the bridging loan Lender issues the offer letter Lender instructs valuation surveyor Valuation surveyor sends report to your solicitor Solicitor checks title deeds, does Local Authority and Land Registry searches, and raises enquiries with the vendor s solicitor Solicitor explains terms and conditions to you You sign documents lender releases funds to your solicitor on completion Your solicitor sends funds to the vendor s solicitor on completion You repay the bridging loan in monthly instalments or all at once at the end of the term We hold your hand every step of the way YOU YOUR SOLICITOR VENDOR S SOLICITOR VENDOR RAPID BRIDGING VALUATION SURVEYOR LOCAL AUTHORITY LAND REGISTRY FUNDS LENDER

5 Understand the risks It s essential to understand the risks if you fall into arrears or your planned exit strategy doesn t work. If you fall into arrears... You will face further fees and charges, such as: Standard arrears fee Extra charge for every payment you miss Fixed amount for each month you are in arrears If the lender has to chase payments or a payment bounces, you may also face court action. If you are struggling to make payments, contact us immediately to discuss your options and agree the best action to take. For example, we may be able to extend the bridging loan (note that will incur extra fees and interest). If your planned exit strategy doesn t work If you can t repay the bridging loan or interest on time, or you breach the agreement (for example, by letting the property without consent), there is a risk that your property will be repossessed. If you live in the property, the court will make an eviction order and you ll have to find somewhere else to live. The property will be sold to repay the bridging loan, interest and any additional costs and charges. If there is any money left over afterwards, it will go to you. If there is a shortfall, you will be pursued through the courts for any other assets. For example, another property you own might have to be sold to repay the bridging loan. If there is a slump in the market and the property can t be sold, the lender may appoint a Law of Property Act (LPA) Receiver to manager the property. They will find tenants, keep the rental income, and have the right to sell it. If you live there, you will have to move out. At Rapid Bridging, we always act in your best interests we know all the potential pitfalls and will protect you from them

6 Our lending criteria at a glance Borrow any amount from 50,000 to 25 million Rapid Bridging offers the highest loan to value in the market - with additional security, we may be able to arrange a loan of 100% of the purchase price. Take a loan over any period from 1 month to 36 months Your funds will be available in as little as 48 hours Pay low interest rates starting from just 0.65% per month You can opt to roll-up the interest and pay it at the end of the term With Rapid Bridging, you ll receive personalised financing options which take all aspects of your situation into account. We base our decisions on the credibility of each individual case, not on some pre-conceived guidelines. So no matter what your short-term finance requirements, get in touch with Rapid Bridging to discuss the bridging loan you need. Get in touch info@rapid-bridging.co.uk

7 BRIDGING & FINANCE BROKERS Copyright Rapid Bridging LTD is authorised and regulated by the Financial Conduct Authority. Rapid Bridging LTD is entered on the Financial Services Register ( under reference , Limited Co No: and Registered in England. The information contained within this site is subject to the UK regulatory regime and therefore is primarily targeted at consumers based in the UK. THINK CAREFULLY BEFORE SECURING OTHER DEBTS AGAINST YOUR HOME. YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON A MORTGAGE. For advice, contact: Rapid Bridging LTD, 25 Southampton Buildings, Chancery Lane, Holborn, London WC2A 1AL Telephone: Mobile: