Bridging Finance Nottingham

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Bridging Specialists

At Veracity Financial Planning, we work with the whole of market, meaning we aren’t restricted to the lenders that we can use. This allows us to find the best deals on the market for our clients.

We provide bespoke advice and solutions for each of our clients, everyone’s circumstances are different which requires a personalised review of our clients situation and plans.

Contact us directly on 01159 670888

Bridging Finance

Bridging finance’s intended use was to allow people to complete on a new property purchase before selling their existing home; it is a short-term solution that would be repaid when the existing property has sold. However, bridging finance has developed into much more than that.

Whilst it can still be used to ‘bridge’ the gap between selling and purchasing a new property it can also be used to finance a multitude of projects from refurbishments and conversions, to other more complex projects.

Bridging now has unlimited uses to finance wherever high street lenders won’t lend.

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When bridging may be useful

Bridging has many different uses and here are just a few of them:

-Financing properties that are un-mortgageable or have complex titles.

-You have a time sensitive case and need funds quickly.

-High street lenders won’t help for a multitude of reasons.

-Need funding to refurbish a property to sell or refinance.

-You need a development exit deal.

These are just a few of the problems that bridging can solve.

Interest rates and terms

Bridging finance can be negotiated with the right lenders and on the right deals. We have a large network of specialist bridging lenders and private banks that may be able to solve your problem.

Loans start at £25,000 and are available up to and beyond £25 million.

Whilst bridging can be used to finance the ‘untouchable’ cases it can come at a greater cost, as with most corporate finance deals. We have seen rates as low as 0.45% per month on regulated bridges and 0.55% on unregulated bridges.

Larger finance deals over £1 million might be negotiable.

We work with an unrestricted network of lenders to provide the best terms for you at the best price.

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It’s a short term solution

Bridging loans are short-term solutions, with most lenders capping their terms between 12-24 months.

Every lender will want to see that you have an ‘exit plan’ from the loan or in other terms, how you will repay it at the end of the term.

The primary methods for exiting are:

-Sale of the security. You should take into account the amount of time to sell the security when planning your bridging loan.

-Re-financing the security with another lender – to repay the bridging loan – that also has a much better interest rate.

-Sale of other assets. Whether it is other properties, assets, business holdings or stocks/shares.

Our advisers will work with you to find out what your objectives are for the project as well as form a plan of how you will exit when the time comes.

How can we help you?

If you are considering a bridging loan to achieve your financing goal then speak to one of our advisers to find out how we can help you achieve your goals.

At Veracity all our advisers are qualified advisers each with their own specialities. Our advisers have all the knowledge of the current mortgage market and have access to the best deals on the market.

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Regulated or unregulated?

-Regulated bridging loans are secured against a property that is currently occupied, or will be occupied in the future, by the borrower or any member of their immediate family.

These types of loans are regulated by the FCA, meaning the rules around affordability will apply.

-Unregulated bridging loans are secured against a property being used for business or investment purposes which will never be occupied by the borrower or any member of their immediate family. Such as Buy-to-Lets, commercial assets, property developments, etc.

As independent advisers we are able to work in both regulated and unregulated mortgages and will be able to correctly advise you on the projects that you undertake.

Interest repayments

In a ‘standard’ mortgage your interest rate is given as a percentage of the loan amount payable on a yearly basis, whereas bridging loans show the rate on a monthly basis.

There are 3 different ways that interest can be paid:

Rolled up interest:

All the monthly interest is added to the capital outstanding and will all be paid when the loan is repaid.

Retained interest:

The overall interest payments are deducted from the gross loan amount before the loan is advanced. Essentially all the interest is paid upfront.

Serviced interest:

This works in the same way a ‘standard’ mortgage would, the interest is paid monthly.

Our advisers will discuss each approach to repaying the interest on the loan. But the chosen method will come down to your personal circumstances and objectives.

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Many bridging lenders will allow you to use your finance to cover light, medium and heavy refurbishments to a property, without having to source a development finance product.

Providing up to 75% of the Gross Development Value and up to 100% of the cost, this can allow small, new developers get the experience needed to potentially take on bigger projects in the future.

Why choose Veracity?

Here at Veracity, we can secure finance for most scenarios, including commercial, regulated and unregulated bridging loans, high-value residential mortgages and Buy to let mortgages and Development Finance. We have an unrestricted network of high-street, specialist and private lenders who can offer our clients the best deals on the market.

We will negotiate terms and rates for your finance needs, in some cases, lenders will offer us bespoke deals for our clients depending on the type of deal and the individual’s circumstances. Our advisers will work with you to find the most appropriate deals and explain to you any potential risks involved as well as the benefits.

Your adviser will work on your behalf to submit any necessary paperwork needed to apply for the chosen deal and ensure any of your questions are answered in a timely manner.

We aim to offer simplified, sensible and valuable advice with clear and transparent fees available to see on our website. Our aim is to ensure that you understand what our advice looks like and what it costs before you contact us for further information.

Contact us directly on 01159 670888

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