Bridging Loan Essex
Sitting between London and the eastern coast, Essex is a county of gentle beauty that attracts jaded city dwellers to the delights of the countryside, without being too far from the bright lights. With good road links and public transport, Essex has a strong commuter population, leading to high demand for property
There is always an interest in development and properties in Essex, attracting businesses and individuals looking to invest in the Essex property market. Novellus’ bridging loans are a speedy funding option for investors looking to capitalise within this affluent area.
What Is A Bridging Loan?
A bridging loan is a form of funding that is quick to obtain and has a short repayment period. This is usually anything up to 12 months. It can be used for purchases that do not meet the criteria for a traditional mortgage or if finance is needed quickly. It provides the time to either secure long-term funding on the property or to renovate and sell.
When applying for a bridging loan the borrower must have an exit strategy in place to pay back the loan and provide a high-value asset as security. It is possible with Novellus to repay the loan before the end of its term without incurring early repayment fees (save for interest due in the repayment notification period).
What Can Bridging Loans Be Used For
There is a range of uses for bridging loans, including (but not limited to):
Buy-to-let – with its proximity to London, Essex has always been a great place to rent. This is exciting news for would-be landlords looking to purchase property to rent out. However, the criteria for buy-to-let mortgages can be extensive, so going through the approval process can be lengthy. A much faster alternative is a bridging loan, which allows landlords to capitalise on potential deals.
Properties that do not qualify for a mortgage – if a property is deemed to be uninhabitable high street lenders will not approve a mortgage. However, in order to do the necessary renovations to make it habitable funding is usually required. This can be achieved via a bridging loan, which gives the purchaser time to refurb it before applying for long term finance.
Land purchases – Land can be challenging to raise funding against, particularly if it does not have planning permission, which is why a bridging loan could be a viable option. Not only is it a quick funding option but Novellus will consider land with or without planning in place.
Who Are Bridging Loans Suitable For?
Bridging loans are suitable for anyone who is looking to purchase residential or commercial property, regardless of the current condition. They are also suitable when it is initially challenging to secure a traditional mortgage. As long as there is a clear exit strategy in place and an asset to act as security, applications will be considered by Novellus.
If a buyer has to make a quick decision on a purchase, bridging loans are a viable option to consider. This may include buying at auction or cash purchases. They are also suitable for developers looking to buy land, with or without planning already attached to it, as well as for investors looking at large projects or mixed development.
They are an option when banks are not in a position to fund the borrower’s project, or if finance is needed fast. Although the interest rates are higher than traditional finance, they often act as an important bridge providing time to secure the necessary long-term funding.
Novellus offer unregulated bridging loans, starting from £ 50,000. Whilst most loans with Novellus are based on an LTV 50 – 70%, we will consider LTVs of up to 90% in specific circumstances.
To help discover the approximate costs involved with a bridging loan, use our online bridging loan calculator for guidance.
Who Can Apply For A Bridging Loan?
Anyone can apply for a bridging loan who has a high-value asset to act as collateral and an exit plan in place. We offer a stress-free application process, with no fixed criteria or credit committees involved. The best way to find out if you qualify is to simply call us today on +44 203 397 4871 or fill out one of our application forms.