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Bridge loan providers charge substantial interest rates for this service, typically between 1 per cent and 1.5 per cent per month on the outstanding capital. Source: http://www.whitehalllending.com/bridge-loans-nationwide/
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Home Services Contact Nationwide Bridge Loans in the UK We find no more attractive value proposition for alternative credit investors than real estate bridge loan funds. As traditional banks continue to withdraw their lending facilities for all but the largest bridge finance transactions, an opportunity has emerged for wealth managers and their clients to benefit from the returns of real estate bridge financing which until recently was only accessible to large institutional investors. Bridge loan providers charge substantial interest rates for this service, typically between 1 per cent and 1.5 per cent per month on the outstanding capital. This is why real estate bridge loan funds are able to offer their investors very attractive yields, typically between 8 per cent and 10 per cent p.a., even net of all fund fees and commissions for the bridge loan fund management company. At the same time, investors can be assured that their money is financing real estate projects in the form of loans backed by the security of a first mortgage claim against a bricks- and-mortar real asset that can be seized and sold to recover their investment in case of default on the loan. Additional assurance for the investor is provided by the fact that the bridge loans are rarely extended for amounts more than 60 per cent of the independently appraised market value of the property at the time the loan is originated. The short term nature of the loan makes it very unlikely a decline in the real estate valuations of a particular market so severe and rapid as to cause the value of the pledged building to drop below the amount of the loan before the building could be sold in case of a default. Your Details
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