Open and Closed Bridging loans
There are two classes of bridging loans, known as open and closed.
Open Bridging Loans
An open bridging loan means you havenot yet got an agreement for your main source of finance and a concrete time frame for the loan being repaid; for instance, a mortgage agreed in principle or the sale agreed on your house. Open loans are riskier to both you and the lender, so are more expensive.
Closed Bridging Loans
A closed bridge loan is available to homeowners who have already exchanged contracts for the sale of their current property, have a concrete mortgage offer or some other pre-agreed means of paying back the loan at a certain point in the future. These are slightly less risky so tend to be more readily available, more flexible and more affordable.
What do bridging loans cost?
Both the loan size and its duration will impact on the bridging loan interest rates you will be charged, as will the property, land or business you are securing the loan upon, your credit rating and, in the case of property purchases, loan-to-value (LTV) required
Finally, you need to be aware that bridging finance charges one-off arrangement fees including valuation fees, admin and legal fees plus (occasionally) exit fees.
Please call us today on 0117 325 1511, for a free consultation with one of our expert Mortgage Advisers to discuss all the options we can offer regarding Loans and Mortgages.
THINK CAREFULLY BEFORE SECURING OTHER DEBTS AGAINST YOUR HOME. YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON A MORTGAGE OR OTHER DEBT SECURED ON IT.
THE FINANCIAL CONDUCT AUTHORITY DOES NOT REGULATE SOME ASPECTS OF BUY TO LET MORTGAGES