YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE.
Regulated Bridging Mortgages
If you’ve ever experienced a broken property chain where unforeseen delays leave you unable to complete on a purchase, you’ll know how frustrating it can be. Missing out on a dream property when you’re looking to downsize can also be equally frustrating.
Fortunately, a bridging loan could be the answer. This short-term funding option can help you ‘bridge’ the gap between the completion of a sale and accessing the credit you need to make a purchase, and avoiding the loss of the home you have set your sights on.
If the buyer of your old property lets you down or delays completion of the sale, a bridging loan allows you to secure the new property while the problem is being sorted. This facility is then paid down on the sale of your existing property.
We have two bridging products available for customers:
A bridging loan of £274,630 repayable after 12 months on a fixed rate of 7.8% would require a single payment of the capital borrowed (£250,000) plus the accrued interest (£20,943.45), the arrangement fee (£5,355.28), the broker fee (£2,500) and telegraphic transfer fee (£20), legal fees (£991), totalling £279,984.87).
The total amount payable would be £281,684.87 made up of the amount above (£279,984.87) plus valuation fees (£1,600), title insurance (£174.34) and the redemption fee (£100).
The overall cost for comparison is 12.76% APRC representative
The actual rate available will depend on your circumstances. Fees may vary. Ask us for a personalised illustration
Last updated: 1st July 2020
Best Short Term Lender NACFB, 2018 – 2019
Best Commercial Mortgage Provider Business Moneyfacts Awards 2015-2018
Best Bridging Lender What Mortgage Awards 2016 – 2018
Scenario: Chain break*
Planning to start a family, John and Kirsty want to move from their current two-bed to a bigger property close to good schools. They find a four-bedroom house, but their own property is tied up in a long chain. Their mortgage adviser helps them secure a regulated bridge. Their old house sells quickly and having arranged a mortgage on their new home, they use the funds to fully repay the regulated bridge with no early repayment charges.
*For illustration purposes only
Scenario: Downsizing*
Mr & Mrs Jones have owned their house for 25 years. Their three children have flown the nest and they want to downsize as the property is too big for their current needs. They find their dream cottage that requires some light refurbishment before they can move in but they do not want to wait for their existing property to sell as they may lose out to a rival homebuyer.
After securing a bridging loan, they complete the sale of their existing property six months later, pay down the finance and are happily settled in their newly refurbished home without the worry of waiting nervously through numerous property viewings.
*For illustration purposes only
Our mortgage products are available via a network of independent brokers - professional intermediaries whose job is to suggest the mortgage that’s best for you.
Although your application must be packaged and presented by an approved Shawbrook broker partner, we are happy to discuss a project over the phone or answer questions via email, so please feel free to get in touch.
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