|New property value:||£500,000|
|Additional security value:||£600,000|
|Total security values (£600,000 + £500,000):||£1,100,000|
|Loans: £100,000 (outstanding mortgage) + £550,000 (loan required):||£650,000|
We suggest commencing the bridging loan process as early as possible to limit the potential problems arising from funds not being available. Our quoted guidelines however are:
|Decision in Principle:||approx. 1 – 2 days|
|Formal offer:||approx 1 – 2 weeks|
|Completion:||approx 2 – 4 weeks|
Bridging finance is usually determined by the security in the property being offered and the exit route. Providing the chosen lender is happy with the answers on these two points, credit issues should not be a problem.
It is important to note that refinancing a client with credit issues from out of a bridging loan is extremely rare, so the exit route in this scenario would normally be sale.