YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE.

Regulated Bridging Mortgages

Flexible short-term finance

A bridging loan is often used to ‘bridge the gap’ between the completion of a sale and accessing the credit needed to make a purchase – a fantastic option if you don’t want to lose out on your dream home due to unforeseen delays.

Thanks to Shawbrook’s flexible approach, this short-term funding can also be used for other purposes, for when speed is of the essence or finance is needed for a short amount of time. 

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What can a Shawbrook regulated bridging loan be used for?

  • To purchase an auction property
  • To raise funds on your current property to fund your next property purchase
    Private occupation only
  • To downsize your property
  • Divorce settlement
    Subject to terms of the Financial Settlement Order in place
  • Light refurbishment
    When the property does not comply with standard residential mortgage requirements
  • To break a property chain
What can a Shawbrook regulated bridging loan be used for?
-0.25%
We are committed to building long-term relationships. That’s why we offer existing Shawbrook customers a 0.25% discount on your arrangement fee for any subsequent mortgage you take out with us.

Complete transparency at every stage – no unexpected rate increases or fees.

  • Up to 70% LTV
  • Loans from £50k to £5m
  • Maximum term of 12 months
  • No minimum term and no early repayment charges
  • No minimum interest
  • Interest is rolled up (interest repayments are payable on exit)
Complete transparency
Please note that we will require a property valuation. Valuation fees will be payable and can be confirmed by your broker prior to applying. The cost will be dependent on property location and value.

Representative Example

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

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Best Short Term Lender NACFB, 2018 – 2019

Best Bridging Lender What Mortgage Awards 2016 – 2018

Scenario: Chain break*

John & Kirsty Smith, young couple

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

Scenario: Downsizing*

Geoff & Elizabeth Jones, Retired teachers

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

Scenario 2

A national network of professional intermediaries

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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