Residential bridging finance is a type of short-term bridging loan designed to ‘bridge’ a financial gap. They can be used as an alternative to a standard mortgage when it’s necessary to act quickly to secure or renovate a property in a short timeframe.
Keeping this in view, do banks still do bridging loans?
New bridging lenders have now become banks
Some of these lenders have extended their range of products, from just providing bridging loans to also providing other financial products, such as residential mortgages, buy to let and commercial mortgages.
In this manner, how long does it take to get a bridge loan?
On an owner-occupied hard money bridge loan, the approval and funding process should take 2-3 weeks. The same type of loan from a bank may take 30-45 days or longer. A bridge loan on investment property, can be approved and funded by a hard money bridge loan lender within 5 days if needed.
How much deposit do I need for a bridging loan?
Your deposit will be at least 20% to 25%, as the LTV available on a bridging loan is 70% LTV or 75% LTV unregulated. The deposit represents the proportion of the property you own outright, the LTV is the rest of the property which you pay off with a bridging loan.
What is the interest rate on a bridge loan?
Bridge loans typically have interest rates between 8.5% and 10.5%, making them more expensive than traditional, long-term financing options. However, the application and underwriting process for bridge loans is generally faster than for traditional loans.