Specialist Finance Centre

Bridging Finance

What is a bridging loan?

When you need to raise funds against a property immediately, a long-term loan such as a mortgage may not be the best option. However, if you have available collateral in the form of a property, a bridging loan could be the solution you need.

Bridging loans are a form of short-term loan that can be secured rapidly, often for a period of two weeks to three years, while larger or longer-term financing is arranged. Many people are not aware that a bridging loan secured by a currently inhabited or soon-to-be occupied house could speed up the process of closing on a new home. It puts them in a position of independence from the rest of the chain and can be utilised if a potential buyer of their current property has withdrawn, or if the chain has collapsed.

What is the criteria for a bridging loan

The application criteria for a bridging loan typically involves providing proof of ownership of the property or properties that will be used as collateral for the loan. This may include documents such as the property title deeds or a mortgage statement. The value of the property or properties will also be assessed, and the loan amount will be based on this value. In addition, the borrower’s creditworthiness, and ability to repay the loan will also be considered. As with any loan, lenders will have their own specific criteria that borrowers must meet, which may vary depending on the lender and the loan amount.

Interest repayment for bridging loans can be deferred until the end of the loan duration, providing flexibility for borrowers. Terms can be up to 24 months, and the interest can be rolled up until redemption or serviced monthly. Rates for bridging loans vary but can start from as low as 0.4%, with a typical rate between 0.75% and 1% per month. Payments can be made at exit or on a month-to-month basis.

Specialist Finance Centre’s approach to bridging loans

At Specialist Finance Centre, we provide regulated and unregulated 1st and 2nd charge bridge financing for residential, investment, commercial property, and land.  If properly advised, bridging financing can be an invaluable finance tool, especially for property professionals.

We ensure that obtaining a bridging loan is the best course of action for the client. Analysis of the exit is more essential to us than chasing the deal. Bridging is a high-risk, short-term option for both the lender and the borrower. Therefore, we reflect this in our approach before offering and recommending a product. We can help you understand the application criteria for bridging loans and guide you through the process of securing the loan that best meets your needs.

Commercial Mortgages

What is commercial finance?

Commercial finance is a vital tool for businesses of all sizes, enabling them to grow and reach their goals without the need to wait for sufficient capital to reinvest in themselves. This type of financing is primarily used to provide businesses with the working capital they need to operate effectively. By borrowing funds, companies can address issues such as late payments, cash flow imbalances, and the preparation of financial statements. Cash flow fluctuations are a common challenge for almost all businesses, whether on a monthly or annual basis, and commercial financing can provide the necessary support to navigate these challenges.

What is the criteria for commercial finance

Commercial finance is available for all types of businesses and can be applied for by any business owner. The application criteria may vary depending on the lender, but typically, businesses are required to provide details such as bank statements, management accounts, and director information. Some lenders may have less strict requirements, while others may require more extensive documentation. There are also alternative options available for companies with poor credit history or start-ups that may have struggled to secure funding in the past.

Specialist Finance Centre’s approach to commercial finance

If you are seeking commercial finance, the market can be difficult to navigate, as, compared to the residential 1st and 2nd charge mortgage market, a greater level of fact-finding and analysis of the individual and company is required to source the most suitable product.

For this reason, it is crucial to deal with an experienced commercial specialist who can take you through the entire application process and to aid in securing the necessary funds to grow any business. Specialist Finance Centre can  arrange loans ranging from £50,000 to over £10,000,000 at rates as low as 3%, and we have the knowledge, experience, and connections with lending institutions to make the process as painless as possible for our clients.

Development Finance

What is development finance?

Development finance is a form of financing that provides funding for large-scale property projects, such as property development, conversions, renovations, and regeneration projects. It is not available for smaller property developments, such as home renovations.

Compared to traditional mortgage applications, development finance is typically available much faster, with a short repayment period ranging from six to 24 months. This ensures that your client is not burdened by debt for an extended period. Unlike regular loans, monthly payments aren’t usually required. Instead, the interest on the loan is added to the capital borrowed, and the total amount is paid back in a single payment at the end of the term.

What is the criteria for development finance

When applying for development finance, the maximum loan amount available is based on the gross development value (GDV) of the completed project. The GDV refers to the estimated value of the property development once it has been completed. Typically, lenders will provide up to 70% of the GDV and 75-80% of the total costs of the project.

It’s important to note that the loan amount available will depend on the lender and their specific criteria. They will assess the viability of each project, including factors such as location, market demand, and potential return on investment. They will also consider previous experience as a property developer, credit history, and the level of risk involved in the project.

Specialist Finance Centre’s approach to development finance

If you are a property developer in need of financing for you next project, the team of development finance experts at Specialist Finance Centre is here to help. We have extensive knowledge of the development finance market and access to a wide range of lenders, which allows us to find the best deal for your unique needs.

Prior to entering into a project, we offer advice on strategy, structure, funding options, and risk management, ensuring that you have a solid plan in place before starting construction. Our goal is to make the development finance process as smooth and straightforward as possible. We understand that securing funding can be challenging, especially for new developers

Second charge mortgages

What is a second charge mortgage?

A second charge mortgage is a way to release funds from a property, where the property serves as security for the lender. This type of mortgage sits behind the first mortgage, and in some cases, it can be more advantageous than remortgaging.

Second charge mortgages can help homeowners raise capital for a variety of purposes, from home improvements to consolidating debt. With loans available from 10K to 2.5 million, our second charge mortgage products are tailored to meet the specific needs of your client.

What is the criteria for a second charge mortgage

A second charge mortgage could be a good option for you in several situations. For instance, if your current mortgage is in a fixed-rate period, remortgaging could result in additional fees. Additionally, if you have an interest-only mortgage or a low rate of repayment, remortgaging could increase your payments, whereas a second charge mortgage could protect their current terms.

Second charge mortgages are often more flexible when it comes to bad credit or low credit scores. Another scenario where a second charge mortgage may be suitable is if you have an unconventional loan purpose, such as paying a tax bill or purchasing a buy-to-let property.

Eligibility requirements vary from lender to lender, and several factors are taken into consideration. Your must have sufficient equity in your property, as the second charge mortgage will be secured against this equity.

Specialist Finance Centre’s approach to second charge mortgages

At Specialist Finance Centre, we believe in providing you with a simple and transparent service. Our second charge mortgage team will always make you aware of any fees upfront, and we handle all enquiries on a no-obligation basis. With all loan fees typically added to the net loan facility.

We are committed to offering a personalised service and tailored solution to meet the unique needs of each application. Whether you are looking to raise capital for home improvements, consolidate debt, or fund a new project, our team of second charge mortgage experts is here to help. Contact us today to learn more about how we can assist you in achieving your financial goals.

Equity Release

What is equity release?

Equity release is a popular option for homeowners who have paid off most or all of their existing mortgage and anticipate incurring substantial expenses later in life. It allows individuals to release tax-free income from the value of their house for a variety of purposes, such as debt reduction, family support, a holiday, or care costs. The “no negative equity guarantee” ensures that your estate will never owe more than the property is worth upon sale. Often, equity release programmes offer portability, allowing you to relocate, and repayment is not required until long-term care or death. In accordance with the conditions of the equity release plan, you may also continue living in your home.

What is the criteria for equity release?

Equity release is a viable option for UK homeowners aged 55 and above, who may be looking to enjoy their retirement or make significant purchases. Lenders take various factors into account when considering an equity release application, such as the age of the applicant and their spouse, their lifestyle, health, family situation, and other sources of income. In addition, a property valuation is conducted to determine its current market value, sales statistics in the area over the past few months, the quality of the property, its maintenance standards, and whether it is sellable. Clients typically have a specific amount in mind, and requesting the maximum amount comes with the highest rate.

Specialist Finance Centre’s approach to equity release

Equity release is a crucial financial decision that requires careful consideration and expert guidance. At Specialist Finance Centre, we understand the importance of finding the right equity release solution for clients, tailored to their unique circumstances. As a trusted partner, we offer a seamless and stress-free application process, providing access to only Equity Release Council member providers, guaranteeing an extra layer of protection for you. Our team of experts work tirelessly to find the best solution, ensuring that all personal needs are met. With our years of experience and exceptional service, we are confident that we can deliver a smooth and efficient equity release process that is tailored to the needs of your clients.

Mortgages

What is a specialist mortgage?

A specialist mortgage is a type of mortgage that is designed for individuals or businesses who don’t meet the standard lending criteria of high-street banks or building societies. This could be due to a variety of reasons such as unconventional property types or sources of income that include regular overtime, bonuses, or commission.

Unlike high-street lenders, specialist mortgage lenders offer more flexibility in their lending criteria to accommodate the unique needs of borrowers. Searching for a suitable specialist mortgage lender can be a daunting task, but with the help of a specialist mortgage partner, borrowers can identify lenders who can cater to their specific requirements.

Specialist mortgage advisors have a comprehensive understanding of niche areas of lending and can quickly identify suitable lenders for borrowers’ specific circumstances. Some examples of specialist mortgage requirements include a bad credit mortgage, a self-employed mortgage, a contractor mortgage, an international mortgage, or a shared ownership mortgage.

What is the criteria for a specialist mortgage

As specialist lending is a part of the mortgage market devoted to providing alternative home loan options, to borrowers who may not be able to meet the lending standards established by conventional mortgage lenders, there are a variety of reasons why a borrower may fall into the specialist category, and there is no common trait shared by specialist borrowers.

Specialist Finance Centre’s approach to specialist mortgages

Specialist Finance Centre is an ideal partner for those who require specialist mortgage products. Our experienced team knows where to find the best solutions for a variety of unique lending needs.

We work with you to identify the best specialist product for your circumstances, making the mortgage application process smoother and more efficient. Arranging a mortgage can be a complex task, and it becomes more challenging when your requirements are non-standard.

With our extensive knowledge of the specialist mortgage market, we can assist you in finding the right lender for your own unique situation, saving you valuable time and resources. Our priority is to establish a long-term relationship with you, ensuring that you can trust us to offer the best service possible.