foreign welcome back to another CashNews.co guys today bridging Finance explained in simple terms so you can clearly understand it we’ll see to Bridget it’s either an
auction property or it’s not a turnkey buy to let that cannot be rented out straight away so you’ve got the property you want the bridge in and you need to understand it we’re going to base this CashNews.co on simple numbers so the purchase price of the property you have found is
one hundred thousand pounds you will need a 25 deposit to get the bridge you will need to add out of your own bank account 25 000 pounds okay that is 25 percent of the purchase price outside the length of the bridge so do you want to borrow the money for six months 12 months 18 months or 24 months
each one has benefits so you need to speak to a mortgage Broker who will explain how it works for you with your personal circumstances the amount of money you need to borrow is 75 000 pounds now there are certain fees that you have to pay when you take out a bridge for ease I am
going to break the numbers down on average of how it works so first of all there is an arrangement fee this is usually two percent of the value of the Loan then you have a legal fee which is around 1500 pound then you have an admin fee which is around 400 pound and then you have a
Valuation fee which is also around 400 pound these fees are usually paid up front with your deposit when you draw down on the bridge each month you will have to pay around one percent of the Loan amount so on this one that we have used for ease every month you will
have to pay 750 pound for borrowing that money now if you take a bridge out for 12 months and you complete the project in nine months you only pay the amount that you have used it for even if your term is 12 months the three months that are remaining you won’t have to pay for but there are
two things here guys retained interest this is where you pay the one percent each month for the 12 month or the length of your Bridge up front in one goal you also have the option of paying the interest monthly so your one percent fee is paid every single month until you have completed the project
guys when you pay monthly you will be asked to fill out an affordability check because they need to make sure that you can afford to pay that money each month so there you have it guys I have explained bridging text-decoration: none;">Finance in the most simplest way that I can imagine for you guys to understand it if you’re still unsure comment below I will answer any questions that you guys have also if you need any help with bridging or any type of financing we own a mortgage company called
the property Circle mortgages guys get in touch and we can help with any financing that you need on that note guys like subscribe comment and let me know what CashNews.cos you also want to see in the future foreign
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Thanks interesting
Bit strong for me though I think when the company calls me back I’m not going to bother far too much risk I can’t afford
What’s the process if you want a bridge to let loan on an auction house?
Can you take Bridging loan, refurbish and with an exit strategy being that you'll reportage for residential(to live in), of course after increased equity?
Great video. Well done Steve.
What happens at the end, once the property is refurbed. Do you sell it and pay the bridging loan back or mortgage it through a traditional lender and then pay the mortgage back? Or either? Sorry, new to this.
Hi, Can I Ask for example I won on auction how soon can a bridging finance be approved?
Fantastic, clear video – thanks so much! I was watching an investors video and he was doing a renovation project and he wasn’t super clear but he mentioned that once the property has been revalued and then remortgaged, at the end, they would pay the bridging company back from the increased equity. Is this ever the case?
Please send me the details of your mortgage lender
hi can i get bridging to buy land
sooo simple thanks 😊
Thanks Steve, what if the property is brought through a Ltd company, can you still get bridging finance for that? Also when you how do you remortgage if brought through a Ltd company? Ie would that go on the directors name?
This is a great video Ste. Good work. And I should know haha
Great video ste
In terms of the term length not being fully used, 9 months instead of the full 12, do you pay the rest of the loan as a balloon payment or what happens to the rest of the money and how is it paid.
As someone who's going through the bridging finance process at the moment, I would recommend you plan as far in advance as possible with your tradespeople… people no showing or causing your project to drag on will hurt your wallet. BAD.
Hey Steve, thanks for the great video mate. Do you know if you have to put up collateral to get a bridging loan? And can first time buyers get a bridging loan?
Terrible grammar! Either 'the most simple' or 'the simplest'.
It is worth noting that bridging is a VERY risky game to get into as the default fees etc can be really high and many lenders are a lot less flexible than a traditional term lenders.
Very educational video ste 🙏🏽🙏🏽
Also if you pay upfront and complete early, do they reimburse you for the remaining months?
Can’t get it explained any better then from the 🐐 👍🏼👏🏼
Is it your deposit + the fees or are the fees taken from your deposit?
Can the interest be paid at the end of the term?
Is a colleratal required for using bridging finance?
Great video