Nationwide Bridging Loans
Who are Nationwide and what do they do?
Founded in 1846, Nationwide has been a pillar of high street banking for over 175 years, and is known for its financial services and insurance products and trusted by over 15 million customers.
Unlike other high street giants, Nationwide is a building society, which means it’s not run for shareholders, but instead, owned by its members.
Read on to learn more about Nationwide bridging loans and other ways you can access the finance you need.
Does Nationwide offer bridging loans?
No, Nationwide does not currently offer customers bridging loans.
Usually, bridging loans are used by property developers to help them bridge the gap between selling their current property and buying a new one.
Although you can secure bridging loans through high street lenders, it’s becoming increasingly difficult to do so.
That’s why so many alternative finance providers are cropping up, there’s a need for specialist lenders and they’re able to offer more flexibility and better deals to customers than some high street lenders can offer.
What do Nationwide’s interest rates look like on bridging finance?
Interest rates vary by provider, and the only way you’ll get a clear picture of what to expect is by getting a quote from Nationwide directly. As a guide, the average range of bridging loan interest rates is between 0.4% and 2%.
Remember, bridging loans aren’t like other forms of financing. You don’t pay an APR (annual percentage rate). As they’re short-term finance solutions, lenders can’t make their money from monthly repayments so instead, borrowers are charged interest per month.
When comparing interest rates, even small differences between lenders can add a lot more to your total loan costs. so bear this in mind.
Learn more about bridging finance interest rates.
What do I need to get a bridging loan with Nationwide?
Any lender will want to see your exit strategy. An exit strategy is a plan to show how you’re going to repay the loan.
As the loan is secured against your property, lenders aren’t really too fussed about the state of your credit score.
To get a bridging loan you’ll need collateral i.e. your property to secure the loan with, you’ll also need to be over the age of 18 and have a registered UK address.
If all of this is in place, Nationwide will send out a member of their surveyor panel to conduct a valuation report.
But remember, Nationwide isn’t the only option for a bridge loan. Before you decide Nationwide is the right choice, why not check out our panel of alternative lenders?
How do I apply and how easy is the process?
Applying is relatively straightforward. You can apply directly use a mortgage broker or apply through an alternative lender.
How long the process takes is entirely up to your circumstances. If it’s just a case of bridging the gap between selling and buying property and there are no unforeseen issues, you can expect a conditional offer in days, sometimes as little as 72 hours.
If the process is a little more complicated, you can expect it to take a few more weeks.
Got some bridging loan questions? Visit our FAQ section.
Does Nationwide offer any specialist bridging options for things like property, business etc?
If you’re wanting to take on a property development project, Nationwide offer specific loan products for occasions just like that.
Nationwide offers customers the chance to borrow against their mortgage and encourages homeowners to apply for home improvement loans.
For property developers, you can use your bridging loan for bridging that financial gap between buying and selling, buying property at auction, or funding renovation projects.
The advantages of a bridging loan with Nationwide
Just like with all high street banks and building societies, many borrowers feel more comfortable choosing to lend through a trusted name.
If you already have a mortgage with Nationwide or you bank with them, you might want to consider keeping all your finances together in one place to make everything easier.
They might even give you better deals as a long-time customer, so it’s definitely worth checking what they’ve got to offer you. But don’t stop your research there, collect quotes from a variety of lenders just to be sure.
The disadvantages of a bridging loan with Nationwide
Going directly to just one provider is always a mistake — what happens if another provider can get you a better deal? You should always compare other providers just in case.
The marketplace for bridging loans is a competitive one, so be sure there are plenty of alternative providers just waiting to help you secure what you need.
The vast choice of providers means the control is firmly in your hands.
As with any financial product, you should never apply unless you’re confident you can realistically afford it. Taking on any kind of debt should not be a decision you make likely.
Bridging loans can be an expensive form of finance, and if you’re unable to repay the loan quickly, the amount of interest you pay increases dramatically.
What is the Bridging Loan Directory?
We’re a free resource here to help anyone looking to learn more about bridging loans. We’ve got a guide section filled with tips about every aspect of bridging finance — but if you can’t find what you’re looking for don’t panic, drop our friendly team a message and we’ll help you where we can.
You must be logged in to post a comment.