YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE.
Use your home to quickly raise the finance you need, when you need it
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
Mr and Mrs Khan have owned their house for 25 years. Their three children have flown the nest and they want to downsize as their property is too big for their current needs.
They find their dream bungalow, however they do not have enough cash for the deposit and are worried they may lose their new home to a rival homebuyer. Through a mortgage broker, Shawbrook was able to provide the Khan's with 100% of the purchase price, which included 75% LTV secured against the new property, and the difference secured against the property being sold.
Six months later, the Khan's are happily settled in their bungalow, have completed on the sale of their old property and have paid off their bridging finance.
*For illustration purposes only
A bridging loan of £84,741, payable after 12 months on a fixed rate of 6.00% would require a single payment of the capital borrowed plus the accrued interest totalling £94,785.13, including fees.
The total amount payable would be £94,785.13, made up of the loan amount £84,741.00, fees added to the loan at completion totalling £3,576.87 (an arrangement fee of £1793.45, a broker fee of £549, a transfer of funds fee of £20, lender’s legal fees of £1098.20 and title insurance of £116.22), interest on the loan of £5,447.26, plus fees not added to the loan, including a valuation fee of £920 and a redemption fee of £100.
The overall cost for comparison is 11.98% APRC representative.
The actual rate available will depend on your circumstances. Fees may vary. Ask us for a personalised illustration.
Last updated: 10th January 2022
Contact us today, and with your consent, we will transfer you to one of our trusted mortgage broker partners. The broker will research the whole mortgage market and if Shawbrook has the best deal for you, they will not, in most circumstances, charge a broker fee*.
* This offer only applies to Shawbrook buy-to-let, commercial investment, and unregulated/regulated bridging finance. In certain circumstances, such as cases involving complicated ownership structures like on/offshore trusts, or for ex-pat customers, a broker fee may apply given the level of work required.
If you have a query regarding your existing bridging finance please contact the Service Desk.
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