Q: How much can I borrow ?
A: The amount that you can borrow is dependent on your circumstances, but is mainly calculated on a loan-to-value (LTV) basis with a maximum LTV of 80% of the property value. Multiple properties can be used as security to minimise the LTV if available. With additional security properties higher LTVs over 100% are achievable.
Q: How long can I have a bridging loan for ?
A: For FCA regulated bridging loans the term can vary from as little as 1 month, to maximum term of 12 months. Typically for non-regulated bridging loans (used for commercial purposes) you can borrow for longer periods up to 3 years. We can also arrange open-ended (non-regulated) bridging loans which are available from a very select number of lenders.
Q: How fast can a bridging loan be arranged ?
A: The time taken to arrange a bridging loan varies depending on the nature and complexity of the case, but a typical turn-around time would be 7-10 days. A decision in principle can usually be provided quickly within a couple of hours.
Q: Is there an up-front fee or exit penalty ?
A: No, you do not have to pay any fees up-front in order for us to provide you with funding terms at no obligation. If the terms are acceptable and you wish to proceed you will then be asked to pay for survey fee at the outset, for the property to be valued.
Q: What is a feasible bridging loan exit route ?
A: The Bridging Loan’s exit route simply refers to the source of funds that will pay the loan off at the end of the term.The exit funds will come from either the sale of a property, or via re-finance. When the exit is from re-financing, this can be a longer-term property loan (residential mortgage, or investment mortgage such as a BTL mortgage), or any other legitmate source of funds such as inheritance, pension release, share dividend, or the sale of a different type of asset.
Q: How much do bridging loans cost ?
A: In addition to the loan interest, bridging loans also incur an arrangement fee, a valuation fee, legal fees, and a number of other smaller fees such as telegraphic transfer fee, security release fee. This varies from case to case, but all costs are clearly shown before making any application. Interest rates vary between 0.48% to 1.5% per month, and depend on a number of factors including the nature of the security property, what the funds are being used for, and the overall loan to value. The majority of bridging lenders charge an arrangement fee which can range from 1% – 2%, and will depend on the loan size.
Q: Will I qualify with a poor credit score ?
A: Having a poor credit score will not prevent you from getting a Bridging Loan but may affect the interest rate charged (which will depend on the extend of any adverse credit).
Q: Do I need to prove my income ?
A: In most cases it is not necessary to provide proof of income (usually where the exit is from a property sale). However, in cases where re-finance will be the exit income details may be requested to demonstrate that the re-finance is achievable.
Q: Will I need to make monthly payments /
A: No, you will not be required to make monthly payments as the interest on most bridging loans is ‘rolled-up’ or ‘retained’ and paid off when the loan redeems.
Q: Are we FCA Authorised ?
A: Yes, EquityOne Finance Limited is fully authorised and regulated by the Financial Conduct Authority under FCA Permission Number 733649. This can viewed in the Financial Services Register on the FCA website.
Q: Do we arrange bridging loans for Companies ?
A: Yes, we can arrange bridging loans for Companies, including SPVs and off-shore companies.
Q: Can I pay off a bridging loan early ?
A: Yes, you can pay off a bridging loan early. Any interest that was calculated for the full term of the loan (beyond the point that you pay it off) will be refunded to the loan. This means that you only pay interest on the period that you had the loan outstanding.