Residential Bridging Loans
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Why Choose Us
Why Choose Us
Ascot Mortgages is a prominent name in the financial sector, offering bespoke financing solutions tailored to your unique needs. A residential bridging loan is one such versatile financing option, specifically designed to meet the temporary financial needs associated with residential property transactions. Whether you’re eyeing a quick property purchase or aiming for a seamless house move, our residential bridging finance options ensure your plans remain on track.
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Written by:
Phil Greenwood
Ascot Bridging Expert
Last Updated:
08.10.2023
Written by:
Phil Greenwood
Ascot Bridging Expert
Last Updated:
08.10.2023
When to Consider Residential Bridging Loans
A residential bridge loan is an excellent option under several circumstances. These include:
- Quick Property Purchase: For securing a property swiftly when long-term financing is not immediately available.
- Auction Acquisitions: Winning bids often require immediate funds—this is where a bridge loan shines.
- Chain Break Finance: Filling financial gaps in property chains to prevent house buying from falling through.
- Renovation & Development: When short-term funding is needed for refurbishing or developing a residential property.
Eligibility and Application Process
Securing bridging loans for residential property is a streamlined process at Ascot Mortgages. Here’s a simplified overview of eligibility and application:
Eligibility Criteria:
- Ownership of a property (for security)
- Clear exit strategy
- Proof of income (in certain cases)
Application Process:
- Initial Consultation: Discuss your requirements and financial situation with our experts.
- Proposal Review: We’ll assess the feasibility of your proposal and advise on the loan structure.
- Documentation: Submit necessary documents for verification.
- Approval & Funding: Upon successful verification, receive quick approval and access to funds.
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Interest Rates and Fees
Understanding the cost structure is crucial when considering residential bridging finance. At Ascot Mortgages, we offer competitive interest rates and transparent fees. Here’s a breakdown:
- Interest Rates: These are typically higher than traditional mortgages due to the short-term nature of the loan. Rates can be fixed or variable.
- Fees: Expect to encounter arrangement fees, exit fees (if applicable), and valuation fees.
Always ensure a thorough review of the cost implications before proceeding with a bridging loan
Property Types and Usage
Residential bridging loans are versatile, catering to a variety of property types and usage scenarios:
- Types of Properties:
– Houses
– Flats/Apartments
– Bungalows
– Land with planning permission
- Usage Scenarios:
– Buying at auction
– Renovation projects
– Chain break situations
– Swift property acquisition
Alison Gibson
Ascot Mortgage Expert
Remortgage
Remortgaging is applied when you keep
living in your present property while applying for another mortgage deal with a new lender. Before finding out how to remortgage and get the best offers from experts like Ascot Mortgages, you have to check meeting what parameters of the deal that can help you succeed the most. The range of background factors varies a lot — from the recently changed loan-to-value ratio or your existing agreement coming to an end.
Whether you are trying to get a more beneficial deal or searching for funding to improve your home conditions, remortgaging is one of the most advantageous scenarios to consider.
Benefits and Risks of Residential Bridging Loans
Opting for a residential bridging loan comes with several benefits, but it’s essential to be mindful of potential risks:
Benefits:
- Speed: Quick approval and fund disbursement.
- Flexibility: Loans tailored to your unique requirements.
- Short-Term Solution: Ideal for addressing immediate financial needs.
Risks:
- Higher Costs: Interest rates and fees can be higher compared to other financing options.
- Repayment Risks: Failure to repay can lead to property repossession.
Choosing the Right Lender
Choosing the right lender is pivotal in securing a residential bridge loan that aligns with your needs. Ascot Mortgages stands out for its:
- Expertise: Profound knowledge of the UK bridging finance market.
- Tailored Solutions: Bespoke loan options crafted around individual needs.
- Transparency: Clear communication of terms, rates, and fees.
- Customer Service: Dedicated support throughout the loan process.
In conclusion, Ascot Mortgages is your go-to destination for residential bridging loans, offering a blend of expertise, flexibility, and transparency. Navigating the complexities of bridging finance has never been easier. Contact us to discuss your needs, and let’s build a bridge to your property aspirations together.
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FAQ
01/ Can I apply for a residential bridging loan if I already have a mortgage on another property?
Yes, having an existing mortgage on another property does not prevent you from applying for a residential bridging loan with Ascot Mortgages. Each application is assessed on an individual basis, focusing on the viability of the proposed project and your ability to meet the repayment terms.
02/ Are there any restrictions on how I can use the funds from a residential bridging loan?
Residential bridging loans are versatile, but they are primarily intended for short-term financing needs related to residential property, such as purchasing a new home before selling the current one, completing renovations, or resolving short-term cash flow issues. It is important to discuss your intended use of the funds with Ascot Mortgages to ensure it aligns with the loan’s purpose and complies with relevant UK regulations.
03/ What happens if I cannot repay the residential bridging loan on time?
If you find yourself unable to repay the residential bridging loan within the agreed term, it is imperative that you contact Ascot Mortgages as soon as possible. We are dedicated to working with our clients to find suitable solutions, which could include restructuring the loan or exploring alternative financing options, in line with UK lending standards and regulations.
04/ Can I extend the term of my residential bridging loan if needed?
It may be possible to extend the term of your residential bridging loan, subject to an assessment of your specific circumstances and the rationale behind the extension request. Each request for an extension is considered on a case-by-case basis by Ascot Mortgages, ensuring compliance with UK lending guidelines and your ability to meet the revised repayment terms.
05/ Will I need a solicitor to obtain a residential bridging loan?
Yes, engaging a solicitor is necessary when obtaining a residential bridging loan, as there are several legal aspects involved, such as property conveyancing and securing the loan against the property. A solicitor will manage the legal process, ensuring all requirements under UK law are met and the interests of both parties are safeguarded.
06/ Can I use a residential bridging loan for buy-to-let properties?
Absolutely, residential bridging loans can be used for buy-to-let properties. Whether you are purchasing, renovating, or refinancing a buy-to-let property, Ascot Mortgages can provide a tailored bridging loan solution that meets your specific needs and complies with UK property finance regulations.
07/ Are residential bridging loans regulated in the UK?
Yes, residential bridging loans are regulated in the UK when the loan is secured against a property that the borrower or their immediate family will occupy. The Financial Conduct Authority (FCA) regulates these loans to ensure that lending practices are fair, transparent, and in the best interest of the consumer. Ascot Mortgages adheres to all FCA guidelines and regulations to provide you with a secure and reliable lending service. For any further enquiries or personalised advice, our dedicated team at Ascot Mortgages is here to assist you and guide you through the application process.
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Legal
Ascot Mortgages authorised and regulated by the Financial Conduct Authority and can be found on the FCA register (www.fca.org.uk) under reference 776062. The FCA do not regulate some forms of mortgages. The guidance and advice contained in this website is subject to UK regulatory regime and is therefore restricted to consumers based in the UK. There may be a fee for mortgage advice. The precise amount will depend upon your circumstances but we estimate it will be £399 per mortgage account. Ascot Mortgages Ltd give you the option to pay a non-refundable fee of £879 payable with the application. If this option is taken, Ascot Mortgages Ltd will refund any procuration fee received by the lender.
Ascot Mortgages Limited is registered in England and Wales and have their registered office at 8 Webster Court, Westbrook, Warrington, WA5 8WD. The company’s registration number is 06764971.
We are a credit broker, not a lender. We work with the whole of the lending market. We may receive commissions that will vary depending on the lender, product, or other permissible factors. The nature any commissions model will be confirmed to you before you proceed.
YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE
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