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 case study
Throughout the deal-making process there will undoubtedly be challenges – it is rare that deals involving substantial loan amounts are agreed without potential stumbling blocks. In these situations, Signature can draw upon extensive industry experience to navigate such issues and achieve a positive outcome for all parties. This expertise combined…
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