Rapid Exit Bridge
When your clients want to minimise interest and exit Bridging Loans quickly, we have the answer.
Key Features
- 18 Month facility for maximum peace of mind.
- Minimum loan size £105,000.
- Charge rate:
- 0.49% for 4 months
- Followed by 0.99% for 8 months.
- Minimum interest charge only 90 days (and you still have another months flexibility to exit to leave before the end of month 4 and still only pay 0.49% monthly!)
- Fees in 2% of Gross Loan, with 1% proc fee paid to introducing
broker. - Fees on exit 0% (after 90 days.)
- Separately charged broker fee can be collected from Net Loan if
required. - All loans based on Open Market Value and not 180 day Value.
- Freehold residential 75% of OMV (minimum residential value
£150,000.)
And remember, we do not charge admin fees.
How it works: Contrast and Compare
Your client purchases a residential property for £250,000 and ‘flips it’
onto a Buy to Let mortgage after 4 months of using the Bridging loan.
Typical UK bridging terms
Client purchases a property for £250,000 on standard industry terms
of 75% of 180 day valuation, at typical rates of 0.89% monthly, with a
12 month facility. Client repays the bridge after 4 months using a BTL
mortgage.
180 day valuation typically 10% less than OMV (Open Market Value)
= £225,000
Gross Loan facility is £225,000 x 75% = £168,750
Interest incurred = £168,750 x 0.89% monthly x 4 months = £6,007.50
Signature Property Finance Terms
Gross loan = OMV at £250,000 x 70% = £175,000. This is £7000
more gross loan facility
Interest incurred over 4 months = £175,000 x 0.49% monthly x 4 =
£3,430 (a saving of £2,577.50)
The Signature Rapid Exit Bridge allows a larger gross loan than
lenders who work on 180 day valuations (even if their LTV looks
higher to start with). Yet the interest cost to your client who moves to
a BTL Mortgage after 4 months is 45% less.
The ‘maths’ speak for themselves; we lend you more and it costs
your client less!
To discuss your client’s deal in detail, please get in touch and start
saving.
Latest deals
LATEST case study
Signature Property Finance has completed a bridging loan to help a property developer based in Scotland release equity from a residential property in Prestwick – a deal other lenders had declined due to a previous low purchase price despite the asset’s increased value. The property, a three-bedroom semi-detached house, had…
Read case study