Bridging loans

[snowy]

Anyone any experience of these, good or bad, probably not the best time with the current credit crunch.

We may be looking to purchase a property that has just come onto the market, but i suspect a developer will get hold of it quickly.

[jamesuk28]

Only experience I have had of them, is they are bloody expensive.

[Dick Dastardly]

Bridging loans can be expensive, especially when compared to more traditional finance such as mortgages but what you are paying for is speed and higher loan amounts. Bridging loans can go from initial enquiry to completion within a couple of days and bridging lenders base their offer on market value rather than purchase price meaning discounts can be taken into account i.e. the whole 'no money down' game which is popular amongst property investors right now.

In the current climate the LTV on offer from a bridging lender will more likely be 75% rather than the usual 85%. A short term closed bridge (under a month before redemption) will often cost less than 1%.

If you have any other questions feel free to PM me (I work for a broker that specialises in bridging loans)

[Adam T]

They are ok as long as you know all the inns and outs, and when it needs paying off buy. In my experience it is about your own organisation of it all - when to bridge, how long for, and the al important getting it off and onto a BTL.

I take it you are thinkin of doing this place up?