Commercial Bridging Loan Criteria

In 2014, there was a significant increase in the amount lent by way of bridging loans in the UK in comparison to the previous year and let us hope that this pattern continues during 2015. We thought you might find it useful if we mentioned some of the criteria for commercial bridging finance although do bear in mind that this is only a guide as they may vary between lenders and there is sometimes an element of flexibility with such providers.

commercial  bridging finance criteria may be different between various lenders
The criteria for commercial bridging loans may vary between lenders.

Commercial Bridging Finance

• Minimum advance – £25,000
• Maximum advance – £10 million
• Maximum LTV – 65%*
• Minimum term – 1 month
• Maximum term – 12 to 18 months
• Interest rate – varies
• Fees – vary

*It may be possible to borrow up to 100% of the purchase price by providing additional deed security.

The interest rate may vary between lenders and is calculated taking into account a number of factors based around the element of perceived risk. For instance, the smaller the LTV the more likely you are to attract a lower rate of interest as the risk to the lender is less. If you have a poor credit history then you are more likely to be charged a higher rate of interest than someone that has a perfect credit rating.

Whilst it is important that you borrow the money at the lowest rate possible, the fees also need to be taken into account as this will affect the overall cost of the borrowing.

As we have mentioned above, there is sometimes some flexibility with the criteria on the part of the lender so it would be a sensible idea to discuss your proposed proposition with ourselves. We can then consider who is the most suitable lender to submit your application to from the extensive panel of lenders that we have access to.

So, why not give us a call to discuss your requirements in detail.

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