A Regulated Bridging Loan can be used as a temporary loan to pay for home improvements, before taking out a long term equity release mortgage.
Lifetime Mortgage lenders provide equity release mortgages to older home owners to allow them to stay in their home and release funds for living expenses and a more comfortable retirement.
One thing all lenders have in common is the requirement for borrowers homes to be in good condition before they provide the mortgage.
Common improvements they request before lending:
- New Roof or significant roof repairs
- Homes with any element of flat roof may need replacing
- New double glazing windows and doors
- Any suspected issues of Damp may require new damp proofing or treatments
- Rewire of electrical circuits to modern circuit breakers from old fuse boxes
- Energy efficiency improvements to improve the homes EPC rating
Key Features of a Regulated Bridging Loan:
- Loans from £25,000 to £10,000,000
- Loan to value up to 70% (100% with additional security)
- Secured on Residential Property
- No monthly payments
- No income or affordability assessment
- Repay in full or in-part at anytime
- 12 month term
- Receive funds quickly, usually in weeks and sometimes in days.
Applying for a Regulated Bridging Loan
The application process is very straight forward and unlike a mortgage, does not require any income or affordability assessment, so there is no need to gather bank statements or payslips or pension statements. A valuation may be needed on your property, although lenders can use a ‘desktop’ valuation saving time and cost.
Your exit plan is the most important part of the application and lenders need to be certain you can repay the loan within the 12 month term. Sale of a property is usually the most easy method, but lenders will accept other exit plans such as remortgage, pension, inheritance and equity release are just some.
Contact an expert
About Us
First Select Bridging Loans are friendly and professional FCA regulated mortgage brokers. We can access mortgages from the whole of the UK mortgage market, meaning we can get the best possible deal for our clients circumstances. Based in Manchester, we are a family business with decades of experience in financial services. Our goal is to be the most trusted regional mortgage advisory business in the northwest of England.
Our team of experts are ready and waiting to help. Contact the team below:
Phone: 0161 393 1575 // 07780 446 937
Email: hello@firstselectfs.co.uk
