What is a bridging loan?
It is a mortgage or loan secured on a property or land usually for a short term period of between 1 month to 12 months, rather than a conventional 25 year mortgage.
How long can I take a loan for?
By its very nature, a bridging loan is designed to be short term and is generally taken out for up to a year. However it is not uncommon for some loans to last two years. Conversely some loans only need to be in place for a matter of days or weeks and can be paid back early
How much can I borrow?
There is no ceiling on the amount of funding we can provide, as long as you have sufficient security and the property is suitable. Funding is generally secured at 75% loan to value (sometimes up to 100% with additional security). One of the most important factors with any bridging or short term loan is how will the loan be paid back or redeemed within the agreed timeframe.
What is the minimum loan amount?
£50,000 with no maximum loan advance
Do you only arrange loans on specific types of properties?
No. We can secure lending on residential, semi-commercial, commercial properties and land regardless of the construction, type or use.
What is the difference between a first and second charge?
A first charge is the primary mortgage or loan secured against a property which takes precedence over all other finance secured against it. If there is sufficient equity in the property, then a second charge could be secured against it.
How long does it take to get funds?
Each case is reviewed individually. However, if all the paperwork is complete, you could receive your funds in as little as 48 hours. It is important to specify any urgent timeframes at the point of sale with us so we can manage your expectations
How long will it take to get a decision?
If you have supplied all the necessary information we need, in most cases we will give you an immediate decision. Sometimes certain banks and lenders have specific turn-around times that we will notify you of.
Are there any upfront fees?
No, sometimes a commitment or application fee may apply but only after a bank or lender has formally produced an offer or credit back terms.
What interest rate will I pay?
Interest rates will vary and Pure Funding Solutions will also endeavour to obtain the most competitive rates to suit the specific enquiry. Rates start from as low as 0.65% per month and can rise to 1.5% per month depending on customer profile, property type and circumstances
Can I repay the loan early?
Yes, if you manage to secure longer term funding, you can repay the loan early without penalty.
What is an exit route?
An exit route is a predetermined strategy to enable you to receive funds to pay back your loan within the required term. A sound and viable exit plan is an absolute must in any loan application.