First charged regulated bridging loans are bridging loans specifically for borrowers:
On many occasions, regulated bridging loans are used as a temporary mortgage on the property which borrowers wish to move into when they’re under pressure from the seller of that property to complete. Regulated bridging loans also offer funding for homemovers when there is the risk of a break in the chain.
Regulated bridging loans may also be used for self-build projects and to purchase holiday homes or retirement homes.
With Redrock, you can apply to borrow from £26,000 over a period of between 3 months and 12 months from 0.55% per month with a regulated bridging loan.
Contact us to let us how much funding you need and with details of the property you’re offering as security.
In most cases, we’re able to secure a firm answer from a lender within 3 working hours of your initial contact.
Within 3-5 days, your lender will have instructed a valuer to produce a report on the property.
With the valuation report and the legal paperwork in place, draw down your money within 5-14 days.
Regulated bridging loans allow you to purchase the property you wish to move in prior to the sale of your existing home
You can continue with the purchase of the property you wish to move into even if the chain below you is threatening to break
When you need to make the purchase straight away and/or need more time to find a mortgage, use a regulated bridging loan to find the funding required for your future primary holiday or retirement property
For when you have seen a property at auction you want to live in and you wish to have the funding in place to meet the auctioneer’s 28-day settlement time period
Use the equity in your primary residential property to raise funds for any reason
Loan to value (LTV): up to 70%
100% funding is available providing you have additional security with sufficient equity
Loan amount: £26,000+
Loan term: 1 to 12 months
Interest rates from: 0.55% per month
Interest options: retained
Exit strategy: sale or refinance
Decision: 24 hours
Completion: 10-14 days
Loans available in UK and Europe
Loan value based on security and property value
Available on first and second charges
Non-status and full status
Interest roll-up schemes
Secure the home you want even if you haven’t sold your original property yet or if the chain is in danger of breaking
Purchase a holiday or retirement property you intend to live in and give yourself up to 12 months to arrange the mortgage
Regulated bridging loans are suitable for self-builders and when the property you wish to move into requires renovation and refurbishment
Know your budget and have the funds ready for settlement
clearance of tax liabilities owed to HMRC
halting of repossessions
prevention of bankruptcy
re-bridging (the replacement of a bridging loan whose term is about to expire with a new bridging loan)
repayment of arrears to creditors
working capital for their businesses
to repay end of term mortgages
What is a bridge loan? A bridge loan is a specialist financial product designed to take you from one stage in a process to the next stage.
For example, if you’re a homemover…
…a regulated bridging loan allows you to purchase the property you want to move into without having sold your previous primary residential property.
How does a regulated bridging loan work? You borrow the money required to purchase your brand new primary residential property with a bridging loan. That bridging loan is secured on the property you’re buying.
You have 12 months to pay back the bridging loan in full. During this time, you can move into your new property and wait for existing chain to complete or, if the chain breaks, advertise your old property again for sale.
What is a regulated bridging loan and how does it different from an unregulated one? The bridging loan company takes first or second charge over your primary residential property on this type of financial transaction. On all other bridging loans, the property offered for security is usually an investment property, a buy-to-let property, or a commercial property.
Because you’re pledging as security your primary residential property, the funding is regulated by the Financial Conduct Authority. Redrock Commercial Finance is an FCA regulated bridging loan broker.
No – a bridging loan is not a mortgage. A mortgage is a form of funding allowing borrowers to pay for the purchase of property over a period of up to 35 years. Although both a regulated bridging loan and a mortgage used a borrower’s primary residential property as security, they are not the same type of product despite the many similarities between them.
Yes. Redrock offers borrowers access to a wide range of second charge regulated bridging loans and we’d appreciate the opportunity to work with you on yours.
A second charge regulated bridging loan is secured on some or all of the remaining equity in your primary residential property. So how much can you borrow?
Equity is the difference between the value of your property and the value of the outstanding mortgage on your property. Let’s say that your property was worth £750,000 and your outstanding mortgage balance was £200,000. This means that the equity in your property would be £550,000 (the value of the property minus the outstanding mortgage balance).
Redrock allows you to borrow up to 70% of the value of your property. 70% of the value of the property in our example is £525,000. To calculate how much you can borrow, you subtract the equity from the remaining mortgage balance – in this case, £525,000 minus £200,000. You may then borrow, subject to acceptance, £325,000.
When a regulated bridging loan is agreed, your lender takes the second charge on your property behind your mortgage provider’s first charge.
What if you have more than one charge on your property already? Please call us – we’re often able to find funders willing to take a third or a fourth charge.
With a bridging loan, you make no monthly repayments – instead, you repay it in full at the end of the term. This is called the “exit” and, when your application is being processed, a lender will assess how likely it is that your exit plan will be successful.
For first charge bridging loans used to purchase property you intend to live in, a bridging loan provider would expect the securing of a mortgage to be your chosen method of exit. When you have a mortgage in place, you then use the funds provided by your lender to settle in full the outstanding balance on the bridging loan.
For a second charge bridging loan taken out to improve or renovate the property you live in, they would expect you to secure a new mortgage to replace the existing mortgage and the bridging loan or to keep your current mortgage and find a longer term funding package (like a secured loan) to repay the bridging loan.
For a second charge bridging loan taken out to raise funds, the standard exits considered acceptable by a lender include but are not limited to:
Please contact us if you have a proposed exit for a second charge bridging loan which differs from the list given above.
Redrock is a whole of market broker offering you access to the widest range of lenders and financial products.
There are dozens of regulated bridging loan providers in the UK each of which want to offer regulated bridging loans according to their own internal criteria for the type of deal they like to make. These criteria differ from lender to lender so, whereas one lender might welcome your application, another one would not even consider it.
When we receive your proposal on your initial contact with us, we’ll only match you to the lenders most likely to look favourably on your request.
We’re not tied to one lender and, when we’re finding you a loan, we want to find you the right product with the right lender based upon your needs. Our loan processing procedures are among the most efficient and quick in the market because we know that, for the majority of the requests we receive from borrowers, time is of the essence.
We are absolutely confident in our ability to secure you the most competitive rates on the most favourable terms in the shortest time possible.
Regulated bridging loan interest rates start from 0.55% per month. There are no early repayment penalties on the loans that we offer if you achieve the exit earlier than anticipated – in fact, on most of the products we intermediate for, you receive interest payment rebates if you settle your account before the agreed rate of redemption.
For an indicative estimate of the monthly interest charges you’re likely to pay on the deal you propose to us, please click for our regulated bridging loan calculator.
To find out more about securing a regulated bridging loan through Redrock, please call us on 020 3780 7610 or click here for our contact form.