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Bridging Loans in Hull

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Bridging Loans in Hull

Explore bridging loans in Hull or see whether there are alternatives available to you.

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Why are you looking to remortgage?

What is your main source of income?

Do you live in the property you're looking to remortgage?

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For joint applicants, please select the youngest group

What best describes what you are looking to achieve?

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Which stage are you currently at?

How much deposit do you have available?

What percentage deposit do you have available?

What is your main source of income?

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Are you an existing buy to let property owner?

Do you own a residential property?

Can you evidence a minimum income of £25,000 p/a?

Can you tell us more about the deposit you have available?

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What best describes what you are looking to achieve?

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Do you have at least 30% deposit or equity available?

Please tell us about your current situation and why it's complicated

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Are you a property owner?

With or without a mortgage

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Do you have an offer of a job that is due to start in the next 90 days?

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Please tell us what age bracket you fall into?

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How can we help?

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What are you looking to achieve?

What type of property are you buying?

Please tell us about your current situation and why it's complicated

Include as much detail as possible

What stage are you currently at?

How much deposit do you have available?

What type of property are you looking to purchase?

Is the house a new build or part of a shared ownership scheme?

How would you describe your credit history?

Would you be able to give us an overview of your credit history?

Please go into as much detail as possible, including type (e.g. CCJ, default, etc.), amount and the date issued if available

What is your main source of income?

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What is your total household earned income p/a?

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Your details have been received. We will be in touch soon.

Sorry, we are unable to help at this moment.

Currently, we are only able to help bridging loan customers who have a 30% deposit or sufficient equity available. In the meantime, feel free to follow us on social media to keep up to date with the latest mortgage market updates or visit our helpful guides section on the website for bridging finance hints and tips.

Stay connected for mortgage tips, market updates, and exclusive content!

Sorry, we are unable to help at this moment.

Currently, we are only able to help existing property owners with secured loans. In the meantime, feel free to follow us on social media to keep up to date with the latest mortgage market updates or visit our helpful guides section on the website for mortgage explainers and tips.

Stay connected for mortgage tips, market updates, and exclusive content!

Sorry, we are unable to help at this moment.

Unfortunately, based on the information provided, we currently don't have any lenders on our panel who can assist with cases where all income is from state benefits. If your situation changes in the future, please feel free to reach out to us again. In the meantime, feel free to follow us on social media to keep up to date with the latest mortgage market updates or visit our helpful guides section on the website for mortgage tips and advice.

Stay connected for mortgage tips, market updates, and exclusive content!

What is a Bridging Loan in Hull?

A bridging loan, is a short-term financing option used to bridge the gap between the purchase of a new property and the sale of an existing one. In the context of Hull, it would serve the same purpose as elsewhere.

If you’re buying a new house in Hull but haven’t yet sold your current property, a bridging loan can provide the funds needed for the new purchase until you can sell your existing home and repay the loan. It’s often used by homebuyers who need quick access to funds or who may encounter delays in selling their property.

Bridging loans typically have higher interest rates compared to traditional mortgages, and they’re usually repaid within a short period, often up to 12 months. They can be useful for those in situations where they need to act quickly, such as property developers or those in a property chain.

Bridging Loans in Hull

A Bridging Loan in Hull for different purposes

Bridging loans are a niche financial tool that can serve multiple purposes, such as funding property purchases, supporting auction finances, or providing capital raising opportunities. Additionally, they can be a lifeline for property refurbishments, development projects, or resolving broken property chains.

These loans also come to the rescue for funding properties that are currently not mortgageable or navigating through complex situations. Have a seamless conversation with our bridging mortgage advisor in Hull today for invaluable insight.

Alternatives to a Bridging Loan in Hull

Bridging loans serve as a swift solution for borrowers seeking short-term financial assistance. This type of loan offers rapid access to funds with flexibility, but keep in mind that the associated costs and interest rates are often higher than those of a standard mortgage.

In some cases, a secured loan might be a suitable substitute for a bridging loan, and we are here to guide you towards the most suitable option. Opting for the expertise of an trusted mortgage broker in Hull, such as ourselves, can help you navigate through the process efficiently and potentially save you valuable time and money.

Speak to a Bridging Specialist

Important information

Your home may be repossessed if you do not keep up repayments on your mortgage.

There may be a fee for mortgage advice. The fee is up to 1% but a typical fee is £495.

Bridging Loans FAQs

Are bridging loans a good idea?

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Bridging loans can be a fantastic solution for short-term financial needs, offering a quick and flexible source of funding. It is essential to seek advice from a reputable and knowledgeable broker to avoid costly mistakes, as they can guide you through the process efficiently, saving both time and money.

These loans are commonly used as a ‘chain break’ in property transactions, bridging the gap between selling a property and purchasing a new one or arranging a traditional mortgage. Timing is often crucial in such transactions, making bridging finance an invaluable tool.

Bridging loans can vary in amount, and they can be structured in just a matter of days. They are particularly popular among property investors seeking development opportunities or high-end residential purchases, allowing them to bridge the financial gap between sale and purchase.

When considering a bridging loan, it is vital to factor in the associated costs into your overall investment calculations. Understanding the fees and interest rates involved will give you a clearer picture of the potential returns on your investment, helping you make an informed decision.

How much does a bridging loan cost?

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While bridging loans may come with higher setup fees and interest rates compared to traditional mortgages, they can be an excellent option for certain individuals. Despite being a short-term solution, bridging loans can be a valuable tool in specific scenarios.

When considering a bridging loan for a property purchase, it is crucial for customers to incorporate all associated finance costs into their overall property expenses to determine its feasibility.

Bridging finance is commonly utilise for acquiring renovation projects at auctions, particularly when a quick 28-day exchange is necessary to secure the property.

Before applying for a bridging loan, your dedicated mortgage broker in Hull will thoroughly explain all the related fees to ensure you have a clear understanding of the financial implications.

How to get a bridging loan?

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When it comes to securing a bridging loan, choosing the services of a mortgage broker in Hull is highly recommended. Bridging finance falls under the category of specialist lending. Given the intricate nature of this type of lending, errors in the process could prove to be quite costly.

As part of the application process, you will be required to disclose information regarding your assets, liabilities, and income. Moreover, a well-thought-out repayment plan will be necessary, whether it involves the sale of a property or a future remortgage.

Our team of bridging specialists will undertake thorough research to identify the most suitable bridging loan options tailored to your individual circumstances. By leveraging their expertise, you can navigate the complexities of bridging finance with confidence and make an informed decision regarding your financial needs.

How quickly can I get a bridging loan?

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Within a week or two, bridging loans offer a speedy solution to pressing financial needs. We tend to find applicants usually seek these loans for urgent matters, making a prompt resolution crucial.

Working closely with us, and furnishing necessary information can speed up the application progress. As a trusted broker in Hull will be able to identify the most suitable lender for your circumstances early on, streamlining the process and saving you valuable time.

What are the typical terms for a bridging loan?

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The terms you can expect will vary depending on your specific needs and goals. For instance, if you’re looking to sell a property, you might only need a loan for 6-12 months. On the other hand, if you’re undertaking a refurbishment project, you may require a longer-term bridging loan.

Typically, bridging loans can range up to 24 months, but in some cases, they can be extended based on your individual circumstances. Whether your property has an existing mortgage or is mortgage-free, bridging finance is an option for you.

In the diverse landscape of bridging loans, flexibility is key. Understanding your unique situation and objectives will guide us in finding the most suitable bridging loan terms tailored to your needs.

Are the interest rates high on bridging loans?

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Bridging loans typically come with higher interest rates compared to traditional mortgage options. This is mainly because of the swift payout and short-term nature of these loans, which increase the risk for the lender, thus impacting the pricing.

Despite these interest rates, bridging loans can prove to be a good financial choice for some, especially for those in the right circumstances and with a specific financial need. The benefits of a bridging loan may outweigh the higher costs associated with it.

While the interest rates may be a tad higher than usual, a bridging loan can still be a viable and efficient solution for those seeking swift financing for short-term needs. Its flexibility and quick accessibility make it a valuable option for many borrowers.

What is the purpose of a bridging loan?

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Bridging loans can serve various purposes, including:

  • Property Transactions: Bridging loans seamlessly connect the dots in property transactions, bridging the financial gap between purchasing a new property and offloading an existing one. This expedites the process for buyers, enabling them to secure their dream property without being tethered to the sluggish sale of their current one.
  • Auction Purchases: In the competitive arena of property auctions, bridging loans shine by facilitating immediate payments post-auction. Quick funds are essential as deposits are typically required on the spot at the close of the bidding, ensuring successful acquisitions without delay.
  • Property Development: Savvy developers leverage bridging loans to breathe life into their construction projects while awaiting long-term financing. For instance, acquiring a property in need of refurbishment, like a fixer-upper, for upgrades such as kitchen and bathroom renovations to enhance its market value and eligibility for traditional mortgages.
  • Business Needs: Bridging loans cater to the financial exigencies of businesses, be it for working capital injections, expansion endeavors, or meeting short-term financial obligations. The agile nature of bridging loans aligns well with the dynamic requirements of businesses seeking rapid financial solutions.
  • Complicated Situations: Bridging loans prove particularly beneficial in navigating intricate scenarios. Our experience reveals that many clients present us with unique, tailor-made circumstances that defy convention, where bridging loans serve as a bespoke and effective solution.

What are the different types of bridging Loan?

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Just like traditional mortgages, bridging loans come in various forms to suit individual client needs. Getting reliable bridging finance advice in Hull means your advisor will guide you to the most suitable option based on your circumstances. Here are the types of bridging loans available:

  • Closed Bridging Loan: Ideal when you have a set repayment date, often linked to an event like selling a property.
  • Open Bridging Loan: Offers flexibility with no fixed repayment date for borrowers confident in their repayment ability.
  • Residential Bridging Loan: Tailored for individuals buying or refinancing residential properties, useful for moving homes before selling the current one.
  • Commercial Bridging Loan: Geared towards businesses for purchasing, refinancing, or developing commercial properties.
  • Development Finance Bridging Loan: Specifically for property developers, based on the project’s value and future potential.
  • Regulated Bridging Loan: Governed by regulations, applicable when a borrower is an individual securing the loan against their primary residence.
  • Unregulated Bridging Loan: Fulfills commercial or investment purposes without the same regulatory constraints.
  • First Charge Bridging Loan: Lender has primary claim on the property’s value, common with unencumbered properties or small existing mortgages.
  • Second Charge Bridging Loan: Secondary claim on the property’s value after the primary mortgage lender, for properties with existing mortgages.
  • Refurbishment Bridging Loan: Funds property renovation based on its post-renovation value.
  • Bridging to Let Loan: Used by property investors for purchase, renovation, and refinancing with a buy-to-let mortgage for rental.
  • Bridging to Sell Loan: Finances property purchase with the aim of a quick sale at a higher price, popular among property flippers.
  • Auction Finance Bridging Loan: Specifically for buying auction properties, providing immediate funding when required.

What are the alternatives to bridging loan?

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Considering your individual circumstances, there are several alternatives to explore instead of opting for a bridging loan. Our bridging advisor will delve into these options further for you.

  • Standard Mortgage: Assess if a traditional mortgage aligns with your needs and if the property meets the criteria for mortgage approval in its current state.
  • Secured Loan/Second Charge: Subject to obtaining consent from your current mortgage provider and having adequate equity in the property for qualification.
  • Personal Loan/Credit Cards: For smaller amounts, unsecured options like personal loans or credit cards could be considered.
  • Development Finance: Specifically tailored for investors engaged in renovation projects, these loans offer unique features worth exploring to compare against bridging loans.
  • Quick Sale Companies: Ideal for those seeking immediate cash liquidity at a competitive rate, especially for short-term purposes.

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Our Simple 4-Step Process

Free Initial Mortgage Appointment

Step 1

We offer a free chat with one of our bridging advisors in Hull, where will get the chance to discuss your options. Before taking out a bridging loan in Hull, we highly recommend getting advice from an expert.

Getting Advice

Step 2

During your free initial appointment, you will be asked a series of questions of questions so that your bridging advisor can get an idea of what you are looking to achieve. We need to get an idea of your current situation and your objectives before we can decide what is the most suitable option for you.

Personalised Guidance

Step 3

Following our in-depth assessment, your experienced bridging advisor in Hull will provide you with tailored advice based on your unique circumstances. They will walk you through the available options, explaining them clearly and transparently. This guidance empowers you to make informed decisions about your bridging loan, ensuring it aligns perfectly with your financial goals and preferences.

Bespoke Solution

Step 4

With the support of our bridging advisor in Hull, you’ll receive a customised bridging loan solution designed specifically for you. This solution addresses your needs, whether you’re bridging property transactions, funding renovations, or investment opportunities. Rest assured, our personalised approach ensures that your financial objectives are not just met but surpassed.

Reasons to Choose Us

Free Initial Appointment in Hull

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We offer every customer a free initial mortgage appointment to every customer. Simply book online or ask us a question by giving us a call. Speaking to one of our mortgage advisors in Hull could allow you to explore alternatives and other solutions you were not aware of.

Finding The Right Product

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We pride ourselves on our extensive roster of specialist lenders. Each lender comes with unique lending criteria, allowing us to tailor a solution that fits your specific needs and helps you reach your mortgage objectives. Finding the right bridging loan in Hull can be made easier by getting advice from an expert.

Our Service

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We take pride in offering prompt and responsive service when it comes to Bridging Loans in Hull. Our dedicated team is committed to providing a 5-star service, keeping you updated every step of the way and remaining attentive to your needs throughout the entire journey.

7 Days a Week

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We are available 7 days a week to help you with your bridging loans enquiries. If you are looking to speak to an advisor on the weekend, don’t hesitate to get in touch with a member of our team.

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Bridging Loan Considerations in Hull

Security

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Bridging finance is commonly utilised with an asset, frequently the property under transaction or other high-value assets, as collateral. This security acts as a guarantee for the lender in the event of a borrower’s default on the loan repayment.

In the world of property transactions and investments, bridging loans serve as a flexible and quick financing option, bridging the gap between the purchase of a new property and the sale of an existing one.

The temporary nature of bridging finance enables borrowers to expedite their property deals without the lengthy process often associated with traditional mortgages.

Higher Interest Rates

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Bridging loans are a financial tool that serves a specific purpose, offering a quick and short-term solution for borrowers. However, it’s essential to understand that they often come with higher interest rates than standard mortgages.

The reason behind this lies in the temporary nature of these loans, which typically bear a higher risk for the lender. This risk is reflected in the interest rates to compensate for the expedited and often less stringent approval process.

So, while bridging loans provide a valuable option for those in need of immediate funds, it’s crucial to weigh the costs and benefits carefully before proceeding.

Speed and Accessibility

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A standout feature of bridging loans is their rapid processing and easy access, making them ideal for time-critical situations. With the right knowledge, and bridging advisors in Hull by your side, bridging finance can be swiftly arranged and approved.

Flexible Repayment

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Bridging loans often come with flexible repayment terms that can suit different financial situations. Depending on the loan, you may need to make monthly interest payments with the principal amount settled at the end, or you might have the option to roll the interest into the final repayment.

It’s crucial to consult with your mortgage advisor in Hull to discuss these variations and determine the most suitable repayment plan for your specific needs. By exploring these options, you can make an informed decision on how to structure your bridging loan for the most suitable outcome.

Exit Strategy

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Bridging loan providers commonly seek a well-defined exit strategy from borrowers. This strategy outlines the repayment plan for the loan, usually by showcasing how the borrower plans to secure permanent financing or finalise the sale of an asset to settle the bridging loan.

Having a clear exit plan is crucial for both the lender and the borrower to ensure a smooth and successful transaction. It allows for a transparent understanding of how the loan will be repaid, offering reassurance to all parties involved in the bridging process.

Creditworthiness

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In the realm of bridging loans, the emphasis often shifts towards the value of the collateral and the soundness of the exit strategy, rather than merely relying on creditworthiness.

The worth of the assets put forth as security and the clear plan for repayment play a pivotal role in the approval process for bridging finance.

Associated Costs

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When considering bridging loans, it’s essential for borrowers to take into account more than just the interest rate. There are other costs that should be considered, including arrangement fees, valuation fees, legal fees, and even potential charges for repaying the loan early.

It’s crucial for borrowers to have a full understanding of all these costs, which will be thoroughly explained as part of the bridging finance advisory process. It’s important to factor in these additional expenses when assessing the overall feasibility and affordability of a bridging loan.

Risk Considerations

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When contemplating bridging loans, it is imperative for borrowers to weigh the potential risks involved. Such loans come with the challenge of ensuring future access to long-term financing or successfully selling the property within the anticipated timeframe.

It’s crucial to evaluate these factors meticulously before proceeding with a bridging loan to avoid any potential hurdles down the road.

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