Specialist lender Precise Mortgages has expanded its bridging loan range by introducing a new developer exit product and reducing bridging loan rates by 0.07%. Bridging loans are a great alternative lending method for short term finance, and definitely something that does not get enough promotion. This development from Precise provides property developers and investors with more flexibility and affordability in securing short-term finance. When it comes to a bridging loan, UK property developers and landlords find them the most beneficial. In this article I will go through what the new changes mean.
What Is a Bridging Loan UK?
In simple terms, a bridging loan is a type of short-term finance designed to help borrowers bridge a financial gap until a more permanent solution becomes available. Typically, these loans are used in property transactions when there is a need for quick funding, such as purchasing a property at auction, breaking a property chain, or refurbishing a property to sell or let out. Bridging loans are especially useful for developers or investors who need immediate access to capital without being tied to the timelines of traditional mortgages.
They are often a vital tool for completing time-sensitive projects or releasing equity tied up in existing developments. Typically they are not an appropriate type of mortgage for someone just looking to buy a standard residential for them to live in. However, your mortgage advisor will always be able to advise you of and help you to secure the most beneficial mortgage for your own circumstances.
New Developer Exit Product
The new developer exit product from Precise Mortgages is designed for property developers who are in the process of selling completed developments, arranging long-term finance, or seeking to free up funds for their next project. This new product offers an ideal solution for those needing short-term financial flexibility to move forward with their property goals. Sometimes a borrower just needs that short-term cash injection to make their dreams a reality, and bridging loans are great for that.
Enhanced Bridging Loan Range
In a message to our brokers, Precise also announced that it has refreshed its actual bridging loan criteria and expanded its loan-to-value (LTV) bands. Bridging rates now start from just 0.62% per month, with products available from 55% to 75% LTV. Much lower than other lenders and standard long-term mortgage rates.
Highlights of Precises’ updated bridging loan range include:
- Standard Bridging: Perfect for chain breaks and auction purchases.
- Tier 1 Refurbishment: For cosmetic updates to properties.
- Tier 2 Heavy Refurbishment: For significant projects requiring changes to the property’s footprint.
- Developer Exit: A new addition aimed at freeing up capital for developers.
Key benefits of Precise bridging loans include:
- Acceptance of both regulated and non-regulated bridging applications.
- No exit fees or early repayment charges.
- Daily interest calculations, with a minimum term of one month.
- Retained interest for the full term of the loan.
- Non-regulated applications for limited companies.
- Stage payments available for Tier 1 and Tier 2 refurbishment projects.
- Refurbishment loans available for properties with up to 20 bedrooms.
Why Choose a Bridging Loan?
There are many reasons why a bridging loan might be a good idea for you. But regardless of what you think MIGHT be a good idea, you should always speak to a mortgage advisor like ourselves at Oportfolio before making any decisions. Bridging loans are highly versatile and can be used for various purposes, such as:
- Purchasing a property quickly at auction.
- Resolving chain breaks in residential property transactions.
- Financing refurbishment or renovation projects.
- Releasing equity in existing developments to fund new ventures.
How Oportfolio Mortgages Can Help
At Oportfolio Mortgages, we specialise in helping clients find the right mortgage and bridging finance solutions tailored to their unique needs. Whether you’re a developer looking to capitalise on Precises’ new developer exit product or a homeowner exploring short-term finance options, our expert advisors can guide you through the process. We work closely with lenders like Precise Mortgages to ensure our clients get competitive rates and flexible terms. Get in touch with us today to discuss your options and see how we can help you achieve your property goals.
