Getting a Commercial LoanObtaining a commercial loan
All you need to get a bridging loan.
No matter whether you need to meet your deal deadline or fund a broken link, sometimes you'll need financing quickly. Andrew Price (CeMap, DipFA), our specialist real estate financier, will explain the specific needs of a bridging loan. May I get a bridging loan? Creditors need a brief description of what they want to use the funds for.
It should cover the conditions and purposes of the loan. Applicants need some fundamental information about themselves. Lenders also need information about any real estate you are planning to buy or refinance with the loan. When you are planning to buy a home to renovate, either to rotate it or to get it as an initial capital expenditure, you may also be asked for details:
NB: A creditor may ask for some extra information, but this will be dealt with on a case-by-case base. Finally, the creditor needs information about the amount you want to lend. In general, creditors will go up to a max LTV of 75% of the loan amount Gross. These include interest withheld for the duration of the loan as well as brokerage or brokerage commission.
On a £100,000 worth real estate, for example, the total available loan will be £75,000. Therefore the net loan amount (i.e. the amount the customer receives) is 75,000 less interest and charges withheld. Your creditor will also ask you how long you would like the loan for.
The transitional conditions are between 1 and 18 monthly, with adjusted credit being limited to a max. of 12 monthly periods. There is no need to hold the bridging for the entire duration and it can be paid back prematurely, usually without a prepayment penalty or exiting fees.
Finally, you need an exit policy. Sound exits may or may not make the difference in receiving a bridge loan. To find out more about our services, visit our website or contact one of our broker-friends.