UK bridging loan rates and loan-to-values – an overview. Why is it so expensive to apply for property development bridging loans and hard to obtain high loan-to-value bridging finance at http://www.omnicapital.co.uk/? These are the two questions that loan providers frequently ask.
For the first question, a bridge loan is for short-term use only, generally for periods of no longer than 1 year. For loan providers, it costs more for them to borrow money to lend over shorter terms than it does for longer periods. That is the main reason why mortgage lenders are able to charge less, who provide finance over periods of up to thirty years.
Another factor of acquiring bridging loan is speed. Those who have urgent financial needs are looking for bridging finance assistance. This often requires specialised work as well as a focused effort on the loan provider’s part, which increases the total price.
Regarding LTVs being way too low, it’s not true. Borrowers who are looking for a residential bridging loan have a wide range of lenders to choose from that provide LTVs up to 80%. Of course, these deals are subjected to credit status but that’s usual across all lending sectors.
Even customers in need of highly specialised finance – like a home refurbishment loan or property development finance solutions – can usually access products that offer up to, and sometimes above, 70% LTV.
Maximum loan-to-values show a loan provider’s appetite for risk as well as the price they pay for funds to lend. They’re also reflecting the detailed aspects of the short-term lending industry or bridging loans UK at this website. So for example, a borrower that seeks money for a luxurious property in a prime area will most likely acquire a higher loan-to-value than one looking for business bridging loan solutions at Omni Capital. All you must do is look around.