Specialist
Bridging Loan Good or Bad
As a specialist property finance broker we can provide:
Bridging loans are a type of fast, short-term finance that gives individuals and businesses the freedom to act quickly when time is paramount.
A bridging loan may be used when:
Fast Finance: It is possible to secure finance through bridging loan providers within 5 to 7 working days, as opposed to through traditional lenders that may take up to several months. Bridging loans may be more suitable than other forms of finance when funding is required within a tight time scale.
Short-Term Finance: A bridging loan is a type of short-term funding, usually with a finance term between 1 to 36 months. This may be an advantage because, unlike traditional funding such as mortgages, an individual or business can repay a bridging loan quickly and not incur early repayment charges.
Exit Strategy: Generally, lenders will only agree to provide bridging finance if a clear exit strategy is in place. This may benefit individuals and businesses, as it ensures that they have a detailed plan to facilitate repayment and minimises the likelihood of defaulting on the loan.
'Roll up’ interest: There is usually an option to ‘roll up’ the interest of a bridging loan to repay at the end of the finance term. If the exit strategy is executed effectively, the borrower may be able to pay off the entire loan at the end of the finance term to avoid monthly interest payments. This gives the borrower the freedom to use their money to progress the project to completion.
Temporary Solution: Bridging loans provides a temporary cash flow solution or ‘bridge’ before additional permanent finance becomes available. Therefore, bridging loans are not appropriate for long-term financial solutions.
Arrangement fees: To access development finance quickly, it is likely that borrowers will have to pay arrangement fees, which are typically 1% to 2% of the overall loan.
Interest: The interest rates charged on a bridging loans are higher than longer-term borrowing rates you would typically get on a mortgage. Therefore, in securing short term finance you need to be comfortable with the additional cost.
Exit fees: Bridging loans sometimes come with an exit fee, which may be up between 1% and 2% of the capital borrowed. Not every lender will charge an exit fee, therefore for those looking for a bridging loan, it is advisable to contact a specialist property finance broker.
I approached Clifton Private Finance to help me get a mortgage as an Expat working in the Far East. I would normally 'cut out the middle man' on something like this and try to get myself a deal directly with the banks, but I am now sold on the broker concept and wouldn't hesitate to use Clifton Private Finance again. There were a number of complicating factors such as being an expat, the stamp duty holiday, the sheer amount I wanted to borrow and the fact I wanted it all wrapped up before the Stamp Duty holiday ended. It is clear to me now that the relationship that brokers have managed to foster with their banks means they can simply pull levers and make stuff happen that us ordinary folk cannot. Put simply, they are worth every penny, will take most of the stress out of the lending process, and seem to have access to deals that you just won't find on the internet. Thank you George and Jan for all your hard work!
James M
Luther was excellent. Very clear in his advice and explanations of products and was able to move things on very quickly when we ran into difficulties with the estate agents. Without a doubt I would recommend Luther to all friends, family and colleagues. Luther was a joy to deal with and took a lot of the stress out of a troublesome transaction, from my end. I would view Luther as real asset to Clifton Private Finance Ltd.
William W
The team at Clifton Private Finance has been outstanding, not only in helping me to obtain a mortgage on a slightly unusual home, but also in continuing to provide support and liaise with the lender and solicitors through to completion. Thank you for making the process of buying my first home much easier.
Chantelle S
Sam O'Neill, and the new lender he identified for me, worked tirelessly together using my time constraints, to make sure my mortgage application was completed on time. They are a brilliant company to work with, fast, efficient, open and transparent from the very beginning, and turned a seemingly impossible situation into a viable one. Sam was brilliant throughout the whole process and I would highly recommend him, and his colleague Helen, to anyone without hesitation, I cannot speak highly enough about them.
Myr B
I was incredibly lucky to find Clifton Private Finance after a search on line as their service has been more than exemplary. My point of contact was Sam 0’Neill and he was happy to help at every stage during the application of the bridging loan, making a stressful process much easier to deal with. He was always available by phone or email and gave prompt answers to queries I had as well as always getting back to me when he said he would. That to me is excellent customer service and I cannot thank him personally or the company enough for the support they have given me.
C Jefferey
Adam cannot thank you enough for all your support throughout this arrangement. You have gone more than the extra mile to support us. Without you we would not have got our dream retirement home. You have been most professional and personable. Liz and I would be more than happy if you wanted to use us a reference with respect to any future clients.
Nigel & Liz K - Bristol
You have certainly shown me that you do everything for your clients, including tolerating their excessive emails and questions for updates. I have been kept in the loop, from yourself, about why the delays were occurring (Nationwide, post etc) which I would like to highlight that I really appreciated. I certainly will be able to recommend you to others as and when the need arises.
Mr Morris
I recently contacted Clifton Private Finance after a Google search for bridging finance providers and was immediately struck by their efficiency and support. Forms were emailed over almost immediately and the necessary finance was arranged within a few days. None of the other companies I contacted came close to their professionalism, and the quote that I eventually received was impressive. Thank you Adam, your help has enabled us to reserve the house that we wanted and I certainly recommend you to others.
Mr M. R. - Oxford
Absolutely brilliant. The service was first class, got everything sorted efficiently and were always friendly. Any fees were negligible compared to the service offered. Robert was particularly outstanding.
Charles N
My advisor, Robert, was very helpful in finding the mortgage to suit me. He kept me up to date throughout the process and dealt with any issues when they arose.
Rowena C
