Finance4 a commercial bridging loan

Commercial bridging loan advice from the experts at Finance4

A commercial bridging loan is for the short term funding of a property purchase, prior to either resale of the property at a profit, or refinancing on more favorable terms. A commercial bridging loan can also be used to release funds from an existing property in order to take advantage of a business opportunity elsewhere.

Finance4 are brokers of commercial bridging loans, we can arrange commercial bridging loans in England, Scotland and Wales. Our advice is free and without obligation.

You have most likely come to this web site via a search engine, and have probably seen many other web sites offering bridging finance in the following way: Funds in days not weeks, 85% - 100% of purchase price, Low interest rates and low fees. In the FAQ section below we will try to paint a more realistic picture.

Please call us to discuss a commercial bridging loan on 0800 019 9605

What can a commercial bridging loan be used for?

A commercial bridging loan can be used for the purchase or refinance of any property of which no more than 40% of the space will be lived in by you or your close relatives. Obviously if you are looking to purchase a factory or a shop, it will clearly be classed as a commercial bridging loan, if you are purchasing a house to live in it would not be a commercial bridging loan. A purchase of a residential property for development or investment (buy to let) purposes would be classed as a commercial bridging loan. The 40% rule would come in to play if, for instance, you were to purchase a property to let to students, using a commercial bridging loan prior to refinancing with an HMO mortgage, and were going to live in the premises yourself.

How much can I borrow using a commercial bridging loan?

A commercial bridging loan is a risky proposition for the lender, hence the high interest rates, high fees and low loans to value. If you need temporary funding to purchase a commercial property and don't have any other security to offer, then a 70% loan to value commercial bridging loan would be realistic. Even more bad news is that the lenders valuation of the property will most likely be based on a 90 day sale price. The 90 day sale price of an apartment in a desirable location could be the same as market value, but the 90 day sale price of an industrial unit is a different story completely.

We think you should have a compelling reason to even consider a commercial bridging loan fort property purchase, such as: You are purchasing the property at way below it's true value, or. .... we can't think of another good reason.

Some good news regarding commercial bridging finance

Unlike a normal mortgage most commercial bridging loan providers will lend on the value of the property and not on the price that you are paying for it. Purchasing at below market price at auction, or from somebody desperate to sell quickly, is ideally suited to commercial bridging finance. It means you may not have to find a deposit, and that the high fees and high interest rate can be off set against the profit you make when reselling the property.

Please call us if you would like to discuss a commercial bridging loan for a below market price property purchase, on 0800 019 9605.

How long does it really take to release the funds for a commercial bridging loan?

The adverts will tell you it can be the same day, or just a few days, or 5 days. We say if all goes well then 10 working days is a realistic target. Essentially a commercial bridging loan is no different to any other property mortgage, in that you still need to involve surveyors and solicitors, either of whom can delay the transaction.

It's true that most commercial bridging loans are non status, and so do not require any personal references, which does save time. It is also true that commercial bridging loan providers are geared up to act quickly, and understand the urgency of the situation.

We say the biggest single factor will be the solicitor, if your chosen solicitor is not familiar with either bridging finance or commercial property, you will have problems.

Please call Finance4 on 0800 019 9605 for advice on a commercial bridging loan, and how to arrange one quickly.

Should I use a broker, or go direct to a lender for my commercial bridging loan?

Since Finance4 is a broker, our advice is biased in favour of commercial bridging loan brokers. However since we have already stated that the only good reason for a commercial bridging loan is to make you money, we would have to agree that getting the very best terms are of secondary importance.

If you want help from an experienced bridging loan broker, who will know which lenders are likely to want to lend on your particular property type, and which lenders will offer the highest loan to value. Please call Finance4 on 0800 019 9605