Bridging Loans
Bridging Finance is a way of raising short term finance, usually secured against residential or commercial property.
There are over 120 bridging lenders in the UK, providing a wide variety of bridging finance from £30000 to as much as £10m, usually for terms up to 12 months.
Bridging Finance can be useful if you are looking at any of the following:
Refurbishing a Property
Perhaps the property does not have a kitchen or bathroom and needs refurbishing? Touchstone has lenders who understand this part of the market and have specific products for this type of transaction, allowing you to buy the property, refurbish it with a buy to let loan as the exit route.
Buying below market value
Perhaps you know a locality well and have spotted a bargain? Many lenders, including the banks, will lend on the lower of purchase price or valuation, but at Touchstone we have bridging finance lenders who will lend on current market value. They will still need a cash or equity contribution of typically 10% to 25% of purchase price, but this allows you to buy the property, with the exit route either a buy to let or commercial loan in due course.
Buying a property at auction
With many banks and other lenders taking so long to agree long-term loans, bridging finance can be used to help you buy at auction, with re-finance exit routes arranged at the same time.
Raise cash for short-term business requirements
This could be for tax bills, to pay off arrears or to pay VAT. Touchstone has lenders who will consider offering this facility for up to 6 months, which is a realistic option if the bank says no!
Short-term re-finance
Whether a development finance loan or a commercial finance loan because your bank is looking for full repayment of its borrowing, Touchstone has bridging lenders who are specialists in this area and able to help buy you and your business the time to restructure the debt elsewhere.
Touchstone has close working relationships with a range of Bridging Finance lenders, as well as more specialist and private funders. Our general bridging loan criteria are as follows:
We can help provide finance on most types of property – land with and without planning permission, industrial units, investment portfolios, residential, warehouses, caravan park, offices, hotels, and have a specialist interest in farms and rural property;
Minimum loan £30000 to £10m (larger loans available in some scenarios);
- Security by way of first or second charge
- Bridging loan terms from 1 day to 2 years
- Rates from 0.75% per month
- LTV’s (Loan to Values) up to 80% of OMV (Open Market Value) – not purchase price
- 100% funding is available if the OMV is significantly higher or additional security it available
- Interest roll-up is available
- England, Scotland and Wales
- Individuals, LLPs, Ltd Co’s, Overseas SPV’s acceptable
Touchstone Commercial Finance Limited is an Associate Member of the Association of Bridging Professionals.
To find out how Touchstone Commercial Finance can help find a creative and tailored solution for your bridging finance needs call us now on 07595 219921 or fill in the following :
