Best bridging loan rates

Legacy_user

Could someone tell me please what's the best type of bridging rates on the market for a below 50% loan to value with offering a first charge on a property?
Has anybody any suggestions what bridging loan bank to try?

dwsjarcmcd

Assuming it is a residential (as opposed to a commercial) property, Bridging rates for sub 50% LTV would be around 0.49% per month, however, there would be fees payable in addition to the rate charged. As an estimate, these would be around 1 to 2% as a lenders fee and possibly another 1% Broker fee if you use one.

The fees can either be paid on completion or added to the loan. Interest is usually rolled up and repaid at redemption.

Have a look at Together Money as a started

ACG

You would be looking at 0.5 to 0.6% and as said around 3% in fees.
You need a broker really as I can only think of a couple of lenders who will deal direct but their rates are not the best.

silvercar

paranoidandroid31978 wrote: »

Could someone tell me please what's the best type of bridging rates on the market for a below 50% loan to value with offering a first charge on a property?
Has anybody any suggestions what bridging loan bank to try?

Why not take a BTL mortgage on the property, making sure it has no redemption penalties?

TrickyDicky101

Do you have an income currently?

It would seem to me to be quite a risky thing to do to source a bridging loan repayable at some future date dependent on timing of a property purchase, refurb and subsequent sale.

ACG

Im a Mortgage broker, we only really play at bridging loans in that we only do a handful a year. So I tend to refer them over to a master broker who do 5 a day (if not more). They have access to deals that I do not and they will do everything from start to finis.

A packager on the other hand is a middle man for the broker. They will provide access to better deals than the an average broker (such as ourselves) could get but the broker will still need to check the case and ensure everything is on file.

My view is that as we only play at doing bridging loans, I would rather put the customer in touch with someone that knows the bridging lenders and their criteria inside out. If I use a packager, I am just another middle man and aside from the customer I am probably the least knowledgeable person in the chain - which I do not like being, especially when the customer will be asking me questions.

Oddly though, sometimes it can be cheaper to go via a broker than a master broker. A prime example is that I did a bridge for someone last year. The commission I would have received for passing it off was £3,500 so I gave the customer £1k on completion. He would not have got that from the master broker - but he was an existing customer.

ACG

Earning £2,500 for what I did on that case was too much really. But every now and again I think we are allowed a good profit case - he got £1,000 back that he would not have got elsewhere so everyone is happy. I dont do that for everyone and (just incase it leads to PMs) I dont do it people ask. I did it as he had done 2-3 mortgages and sent me a few good referrals.

silvercar

Leverage is such a powerful tool,

Tools are so dangerous in the wrong hands.

Start small and build gradually. I read that 50% of bridging loans aren't repaid on initial timescales.