A bridging loan is a short-term loan that can be secured against a residential property, commercial property or land and is designed to ‘bridge a gap’ until longer-term finance can be arranged or is sold.
A bridging loan can be used in a wide variety of circumstances, whether funds are required for:
- Buying-to-let
- Refinancing a property or land
- Purchasing a property or land either on the market or from auction
We offer loans from £50,000 up to £1.5 million.
Normally bridging loans last up to 12 months. Special terms can be discussed if longer required.
We accept security on residential and commercial properties. We also accept security against land with or without planning permission.
Arny Finance Limited valuates each application on its own individual requirements.
A valuation fee is required to cover the surveyor’s cost. This is paid directly to the valuer.
The arrangement fee is usually around 2.5% of the gross loan which deducted from the loan advance on completion.
Administration fee. The cost of our administration of the loan which is deducted from the loan advance on completion.
Legal fee. You will be required to cover our legal fees to complete the loan.
In some cases, there may also be a broker fee payable which is also deducted from the loan advance on completion.
Minimum term is 3 months.
With all loans there are some potential risks which are worth considering before applying.
Like most short-term finance options, bridging loans often have higher interest rates and incur more expensive admin fees than longer term finance.
It is paramount that borrowers are aware of the fees in advance, to minimise risk of capital.
If you do not keep to the terms of the loan then your property or land will be at risk too.