How much can you borrow with a large bridging loan?

How much can you borrow with a large bridging loan?
How much can you borrow with a large bridging loan?

When you need a fast financing solution for your extensive residential or commercial project, you may be wondering how much you can borrow with a large bridging loan. Bridging loan finance provides you with the funds you need quickly and a specialist lender or private bank can arrange a large loan for you on a bespoke basis.

How can a large bridging loan benefit you?

With a bridging loan, you can bridge the gap in your financial situation to achieve your goal before your long-term finances are resolved. As a property developer, investor or high net worth individual, you’ll likely have a significant and possibly complex project in mind. The ability to secure high-value bridging loans removes any financial obstacles from your path, enabling you to proceed.

You may, for example, wish to buy your dream home in Pimlico but haven’t sold your existing one yet. Or there may be a problem further along the property chain you’re in. Home loan bridging finance offers a solution, allowing you to go ahead with your purchase while the issue at hand is dealt with.

The property you wish to buy in Pimlico, London, may be unmortgageable. A bridging loan broker can arrange the funds you need to buy it and carry out the necessary work. When the property is habitable, you can then secure a traditional mortgage as your long-term finance.

As an investor, you may need substantial auction finance. A bridging loan ensures you can secure the property or land you’re bidding on. You may be a landlord wishing to expand your property portfolio or make improvements to the properties you already own. Specialist bridging finance ensures you have the short-term finance to do this.

As a developer, you may be restoring a high-value property in London. The work, however, is taking much longer than you expected. You need to repay your existing large bridging facility and have to arrange a new one to do this. Alternatively, you may wish to redevelop a property from the ground up and want to utilise a large bridging loan for this project.

How much can you borrow with a large bridging loan?

No matter what your project involves, there’s still the question of how much you can borrow with a large bridging loan. Generally, large bridging loans start at £1 million. Some specialist lenders, however, have higher minimum loan requirements, such as £5 million. Bridging finance specialists offer loans that can extend to tens or hundreds of millions. As high-value lending tends to be of a complex nature, each case is underwritten on an individual basis. Ultimately, the amount you can borrow depends on the amount of deposit you can pay as well as your solvency, property experience and exit strategy.

  • Deposit: The more you can pay for your deposit, the better your offer will be. However, in some cases, you may be expected to pay a significant percentage, such as 30% to 40%.
  • Solvency: Unlike applying for a mortgage, your income isn’t as important when applying for a large bridging loan. Instead, the lender will take your assets into account. These can include properties owned, pensions, high-value cars, fine art, jewellery and investment portfolios.
  • Experience: Your lender will consider your property experience when determining how much to offer you as a loan. If you’re a developer with extensive experience, for example, you’re likely to be offered a bridging loan that covers the full amount of your development costs. Don’t worry if you’re a first-time property developer. Our bridging loan brokers work with specialist lenders who consider offering loans to borrowers without any previous experience.
  • Exit strategy: The strength of your exit strategy is essential and needs to be agreed with the lender in advance. You need to confirm when you intend to repay the bridging loan and how. This could be by selling a property after it’s been renovated, for example, or by refinancing.

Credit history

Just as income isn’t as important when applying for a large bridging loan, neither is your credit score. Many specialist lenders take a flexible case-by-case approach and consider an adverse credit history or no credit history at all. Our expert bridging loan brokers can advise you on how to increase your credit score and rectify outdated credit issues if necessary.

How do you repay a large bridging loan?

Large bridging loans usually have a term length of up to 12 months although longer terms are available depending on the lender and your circumstances. When choosing a bridging loan, you need to decide between an open or closed loan, which determines when the funds are to be repaid.

Open bridging loan

With an open bridging loan, the repayment date isn’t fixed so it’s a more flexible option. You repay the funds in full when you can during the term. As you’re not held to a specific date, this tends to be more expensive than having a closed bridging loan.

Closed bridging loan

This option has a fixed repayment date. This reduces the risk for your lender and, as a result, you benefit from a lower interest rate.

Benefit from a fast financial solution with a large bridging loan

For expert advice on large bridging loans in London, get in touch with us on 01322 907 000. Our specialist brokers will discuss your situation to ascertain the complexity of your project and financial circumstances. We have access to niche lenders who take a more flexible approach to lending and offer bespoke lending products.

When you’re ready to proceed, your dedicated bridging loan broker in London will provide a personal service and tailor-make your application. With extensive expertise in large bridging loans, they will help you to save a considerable amount in costs and negotiate the best rate for you.

Our large bridging loan experts understand that time is of the essence. As such, your broker in Pimlico, London, will ensure your application is processed in a timely manner. That way, you can rest assured you’ll receive your funds quickly, allowing you to proceed with your project.

Talk to the mortgage experts.

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