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Buying A Home In London With A Bridging Loan

So you have found your dream home in London and need to move fast before it is bought by someone else. But the problem is your current home has still not sold, and you donu2019t have the deposit to buy it.

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Buying A Home In London With A Bridging Loan

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  1. Buying A Home In London With A Bridging Loan

  2. So you have found your dream home in London and need to move fast before it is bought by someone else. But the problem is your current home has still not sold, and you don’t have the deposit to buy it. What is the solution? Enter bridging loans; a bridging loan is a short term finance facility that features a quick application process. There are many bridging loan lenders in the UK, especially in London. One only needs to go to a search engine and enter the keywords bridging loans London, and you will find dozens of brokers and lenders ready to win your business.

  3. How does a bridging loan work? As mentioned above, bridging loans are a short term finance option, typically between 3 to 12 months in length. In order to obtain a bridging loan, you must have an asset to put up as security against the loan, in most cases, this will be a property. The equity available in your property will determine how much you can borrow with bridging finance. Lenders will go up to 75% in most cases.  What are the costs you can expect? A bridging loan facility is not cheap, although they are competitive in the UK due to many lenders currently in the market. There are several charges that you must take into consideration when you take this finance option. First and foremost, you will have a monthly interest charge on loan, which can range from 0.40% to 1.5%, and then there are other charges most lenders will levy. See below for more detail.

  4. Interest rate 0.4% – 1.5% (pm) • Valuation fees • Arrangement fee • Solicitor charges • Exit fees (in some cases) • Application fees (in some cases) • Broker fees (in some cases) • A valuation fee is required by lenders to determine the value of the property. Legal fees are also needed, and the borrower is expected to pay the legal charges on both sides. An arrangement fee is typically 1% to 2% of the overall loan amount. Some lenders may charge exit fees and application fees, although in the current competitive market it is not common. Finally, if you are using a bridging loan broker, then, you can expect to pay a broker fee of 1%.

  5. 020 3393 9277 https://www.propertyfinancepartners.com/ info@propertyfinancepartners.com 27 Old Gloucester Street, London WC1N 3AX, United Kingdom Global Property Finance Partners Ltd.

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