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EVERYTHING YOU NEED TO KNOW ABOUT OUR BRIDGING LOANS

A bridging loan is a short-term interest-only loan available to those that need urgent access to capital. . Bridging loans are secured, meaning the borrower uses property (or land) as security to the lending institution.

As a short-term loan, they are generally taken out for 1 to 6 months, but can be for up to one year.

As bridging loans are for the short-term, each client must have a plan in place to pay off the loan. This is known as an ‘exit route’.

No. Tiger Bridging are not constrained by the strict criteria of any one lending institution. We work as the focal point and packager for our select group of high net worth investors, family offices and hedge fund partners. We offer bridging loans that you cannot find anywhere else on the market.

A ‘first charge’ is the primary mortgage or loan secured against a property. This takes precedence over all other finance secured against it. However, If there is sufficient equity in the property, a ‘second charge loan could be secured against it.

No, we cover all parts of the United Kingdom, including Scotland.

The normal loan to value (LTV) is 70% of the open market value, but can be higher in some circumstances for the right project, and/or if additional security is offered.

Any individual or limited company can apply for a bridging loan.

No problem. The funding is decided based upon the strength of the property asset being used as security, regardless of the profile of the borrower.

Bridging finance is a type of short term finance so it is more expensive than more mainstream kinds of finance. Because of this, it is vital to have an exit strategy in place to ensure you can repay the loan should anything unfortunate happen. If a loan cannot be repaid, it is liable to be repossessed at worst, and high interest rates will be charged at best, so being able to re-mortgage or sell the property should always be an option.

No. We are not regulated by the Financial Conduct Authority.

An unregulated bridging loan is where the borrower or a family member will NOT reside in the subject property.

Our finance partners require the costs associated with the loan, including the interest for the term of the loan, to be deducted from the loan advance. This means that most fees and costs are effectively ‘rolled up’ with the loan so that the borrower is not actually required to pay these costs until the loan is repaid.

Our finance partners require the costs associated with the loan, including the interest for the term of the loan, to be deducted from the loan advance. This means that most fees and costs are effectively ‘rolled up’ with the loan so that the borrower is not actually required to pay these costs until the loan is repaid.

Generally the minimum loan size is over £100,000.  The maximum loan size is dependent on the strength of the asset being used as security. There is no realistic upper limit for the right project.

Depending on the speed of the valuation, and the preparedness of the legal teams on all sides; an offer  can be provided with 24 hours and the funds available within 48 hours. The normal timeframe for a bridging loan application is 2-3 weeks. 

Bridging loans are mainly used by clients that need quick, short-term capital to fund a property purchase. They include those who:

Need to complete quickly. This might include property developers, who often have the opportunity to secure a great deal if they can complete quickly.
Buy through a property auction. Bridging loans are popular with those buying property at an auction. Here, completion has to take place within 28 days which means traditional financing is not usually an option.
Are in a broken property chain. A bridging loan enables a seller of one property to secure their new property before the sale of their existing property goes through.
Want to buy an uninhabitable property. Traditional lenders will often not lend on a property if there is no kitchen, bathroom, central heating or running water (especially buy-to-let mortgages). A bridging lender will base its lending on the property’s value in its current condition, however. This means the buyer can get access to the property and work on it to make it habitable.
Are renovating or developing a current property. A property investor may want to renovate a property within a few months and either sell it on or refinance. A bridging loan can often be the perfect vehicle for this short-term capital requirement.
Have to get planning permission. In order to obtain planning permission and secure development funding, the developer may need immediate access to capital.
Need a lease extension. When a property has a short lease a borrower will likely be refused a traditional mortgage. A bridging loan can be used to extend the lease, which then makes the property mortgageable through conventional lenders.

Residential property
Commercial and semi-commercial property
Land
Hotels and Pubs
Development finance
Investment Portfolios
Industrial Units
Factories
Nursing/care homes
Multiple occupation (such as HMOs)
Farms or agricultural property
Offshore special purpose vehicles (SPV)

Yes. Funding is available regardless of the income of the applicant. Interest and fees will be rolled up for the duration of the loan.

HOW TO GET A LOAN WITH TIGER BRIDGING

Once we have issued indicative terms by email, if you wish to proceed, please simply confirm by email or by giving us a call. It’s that simple. We try to keep the paperwork to an absolute minimum…..

As soon as the funds arrive we will liaise with the appointed RICS valuer, and you, to arrange the fastest and most convenient appointment for the valuation. See the valuers we work with below.

As soon as the legal paperwork is completed, the funds will be available for drawdown.

Once you’ve been in touch with confirmation we will issue an Offer in Principal (OIP). We aim to have this issued within 2 hours of hearing from you. This document sets out the basic terms of the loan. If you agree, we will then request the fees to instruct the valuation.

We don’t like to lose time. So whilst we wait for the report to come back, we ask for your solicitors details so that we can send them our requirements.  The valuation report arrives! As long as the value of the property as set out in the report is acceptable for the loan to proceed, we instruct lawyers to get in touch with the applicants lawyers.
 

It really is that simple at Tiger Bridging.

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