How to organise a bridging loan checklist

Checklist provided by 

www.brooklandscf.co.uk 

Brooklands Commercial Finance

 

A bridging loan can help during the following circumstances:

• Auction Purchases

• Site acquisition pending planning

• Repairing a broken property chain

• Downsizing

• Refurbishment

• Assist cash flow

• Purchase uninhabitable property

• Speedy purchase of a property

They can be useful as they can be arranged in a matter of days as opposed to a matter of weeks or months.

Bridging loans are for short term finance and are typically available from 1 day to 18 months.

Due to the complexity of bridging finance and the vast array of lenders, it is prudent to use the services of a commercial finance broker. They should ensure that there is Clarity, Transparency, Speed and Flexibility.

Is the broker FCA regulated?
Is the broker a full member of the National Association of Commercial Finance Brokers?
  How much do you want to borrow? 
  What is the security that you will be giving the lender? 
  Do you want to service the interest or have it rolled up and paid at the end? 
  What are the lenders arrangement fees and interest rate?
Does the lender charge an exit fee?
What are the valuation and legal fees?
Is there a minimum term?
What is the exit route (How will the lender be repaid)?
Is the borrower going to be a limited company or an individual?

All our information is brought to you by Kate Faulkner, author of
Which? Property books and one of the UK's top property experts.
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