Testimonials

Hear what our clients are saying!

J. H-B.

I have used Sharon Harvey at Seafield Mortgages since my first property purchase in 2003. Whether you’re a first-time buyer, an existing homeowner, looking to re-mortgage, or a property investor, Sharon will go out of her way to find the right mortgage deal for you and save you £100’s each month. In a market where it has become increasingly difficult to borrow, knowing which lender and deal are right for you can be daunting. Sharon is well qualified, clear, practical, highly knowledgeable and able to deal with both the most simple and complex situations. Sharon goes the extra mile with her dedication and impeccable customer service. 

"Our key aims are to fully understand what you are looking to achieve, create a solution tailored to your needs, deliver results through an excellent service and build a relationship for life".

"We have access to a wide range of mortgage and insurance providers to ensure we can find you a competitive financial solution, which meets your needs and your budget".

"We specialise in providing advice and guidance on Mortgage and insurance products but I can also put you in touch with trusted partners for help with Pensions, Investments and Wills".

Bridging Loans

Think carefully about securing other debts against your home.

Your property may be repossessed if you do not keep up repayments on your mortgage

Although bridging loan is commonly used for buying and renovating property, it can also be used by business owners for a range of other purposes. 

Bridging loans aren’t as niche as they used to be and business owners consider them when they require a quick cash injection. 

As with any loan, eligibility criteria applies and you’ll need to present a business plan and exit strategy when you apply for one.

Who would benefit from bridging loans?

Someone who needs to complete on a new property purchase, but has not sold their property.

"We have access to a wide range of mortgage and insurance providers to ensure we can find you a competitive financial solution, which meets your needs and your budget".

Where a property in its current state is unmortgageable.

Taking a bridging loan to complete work, such as a kitchen or a structural defect, to allow the property to be mortgagable in the normal mortgage market. 

Bridging Loan Questions

How do you pay off a bridging loan?

What is the criteria for a bridging loan?

Usually from selling the property or remortgaging away to normal high street lender. As the interest is front loaded for typically  12 months, if you paid it off say after 4 months, you would get 8 months interest returned. There is no Early Repayment charge to clear a bridge.

You will also need to be able to provide security in the form of a house, flat, commercial property or land, which the lender can use to secure their loan. If required, more than one property can be used to secure a bridging loan. You will also need to be able to provide or demonstrate an exit route for the loan.

Someone buying at Auction. 

Often buying houses from Auction require you to exchange and complete within a month, and it may need work to get in mortgageable state.

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Buy-to-let

A property that the owner has bought in order to rent out to tenants.

Completion

The finalised sale and purchase of a property and at which point you become the owner.

County Court Judgment (CCJ)

A court order made against a person who has failed to pay a debt.

Decision in principle

An application likely to be accepted given the information received. It is not legally binding and may change when further information is disclosed.

Exit / exit strategy

In this context, the plan and approach to repaying the loan i.e. the capital at the end of the term. For example by sale or remortgage of the property which is given as security.

Fixed rate

A rate of interest which remains fixed for the entire period of the loan.

First charge

A charge in a first lien position on a property. A first charge generally has priority over all other liens or claims on a property in the event of default.

Intermediary

A broker or advisor who locates the most appropriate funds for a borrower, and makes the arrangements on the borrower's behalf.

Loan to Value (LTV)

The ratio of how much is borrowed compared to the value of the property. For a home worth £1,000,000, a £900,000 loan would be expressed as £900,000/£1,000,000 or 90% LTV.

New build  

Newly built properties. These can be either single homes or entire estates.

No bathroom no kitchen

A property in which there is no bathroom or kitchen. Usually such properties are   not eligible for high street mortgages but can be financed via bridging / short term-finance.

Retained monthly payments

To assist in meeting monthly interest payments, an amount can be retained from the loan representing a number of monthly interest payments. The retained interest is still part of the capital sum of the loan so interest will be charged on this amount.

Splitting title / title splitting

A legal process which involves in the case of registered land generally creating two title numbers. For example: A house and its surrounding land may be on one title number – splitting the title would involve putting the house on one title number and the land on another title number.

Self-build

A property built by its owner to live in.

Second charge

Similar to but ranking behind a first charge. Typically, it secures a second loan to any remaining value in the property after the first charge. For example: if a £100,000 home has a £50,000 first charge, a second charge may be secured against some of the remaining £50,000.

Staged facilities

A loan facility that allows a borrower to use the money at different times, as and when funds are required. For example in the case of a borrower building a property – the funds will be required at the various stages of the build.

Term

The period of time over which you take the loan.

Title deeds

A property's legal documents which show proof of ownership.

Valuation

A check of the property to assess its worth and suitability for lending.

Variable rate

An interest rate on a loan which fluctuates over time.

Valuation fee

The fee for the person or body which assesses the value of a property..

Bridging Loan Glossary

Bridging Loan Questions

How much can you borrow on a bridging loan?

What is the alternative to a bridging loan?

From £50,000 to £5,000,000. The maximum loan, including any retained or rolled up interest is normally limited to 75% loan to value (this can be over multiple properties).

If you want to move but can’t sell, you could also consider a let-to-buy mortgage arrangement.

You can do this by remortgaging your current home onto a buy to let mortgage and using the equity released to buy a new property.

Get in Touch

Feel free to send us a message using the contact form below.

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