Bridge Loan TermsLoan conditions for bridging the gap
70% of the value of the security real estate and on an uncontrolled bridge loan (an asset where you or a member of your immediate household have never been living, do not are living and do not plan to be living in over 40% of the usable area) 75/80% of the value of the secure real estate.
Numbers above are calculated on the basis of total credit (including all charges and interest). Net loan (excluding charges and interest) would be between 5 and 10% lower than the above values. In addition, it is possible to lend a large amount, e.g. 100% or more of the property appraisal, via collateral.
Example: 650,000 is approximately 59% of the value of the security of 1.1 million pounds (650,000 pounds / 1,100,000 pounds x 100 pounds), which makes the loan reasonable for the creditor, as the total loan in this case would be 70% LTV of the value of the security, plus all charges and additional interest. Since there is no need for interest to be paid each month, the loan will increase during the period until repayment.
According to the scenarios, charges and interest up to the end of the period covered by the agreement can contribute a further 5-10% to the initial loan. More than 2 real estate can also be used as collateral to lend the necessary resources and/or by lowering the LTV to qualify for better interest Rates.
Creditors shall set the LTV available at the limit by addition of the net loan plus handling charges plus interest accrued if the loan runs for the entire agreed time.