How can you maximize your bridging loan by borrowing more than 75%?
I’ve spoken about the benefits of using bridging,
But how do you ensure you are borrowing the maxmum amount so you are putting in the least amount possible?
We can lend 85% of the purchase price on day one
This is the simplest way to give you some extra funds to purchase the property.
There are some caveats as usual!
- The gross loan needs to be under 75% of the GDV
- 10% of the loan needs to be for the works so there needs to be at least that much to spend.
- Works need to be light, so no structural or change of use.
We can lend you all the costs for the work.
This is more complicated, particularly at the moment.
Lenders are moving the goal posts and increasing their minimum loan sizes so please check with me before you make any assumptions on figures.
As a general rule we can lend up to 65% of the GDV, with all works covered (in arrears) so whatever is left from the total loan is your day one loan (minus fees and interest)
We can lend 75% of the open market value on day one
This is seen as the unicorn product, as it all depends on your figures!
You need to be confident that you are purchasing a property under full market value, but we do see it quite often
We can lend up to 75% of the open market value, and up to 90% of the purchase price
This is a great way to maximize your loan with no additional costs.