Refinance of Existing Bridging
This is when the current bridging loan needs to be repaid and the original plan hasn’t worked out. You may be looking for a lower rate or the build may have been delayed and the current lender wants to charge default rates. We’ve seen these as high as 3% per month.
POINTS TO CONSIDER WHEN LOOKING FOR RE-BRIDGING FINANCE
- Term of the mortgage, as often lower rates are quoted for shorter terms but if you don’t repay on time the rates can be much higher;
- Does the lender require a valuation as not all lenders do;
- Don’t just focus on the interest rate. Add all the costs up to compare one lender to another;
- If using a broker ensure they fully understand bridging and don’t go through a third party. This will increase the costs and be slower;
- What is your exit, what is your Plan B, C etc. Work on this before you apply for the loan.
- 1-24 month options;
- Up to 75% of value;
- Choice of daily or monthly interest rates.