Borrowing Money

Mortgages

A mortgage is defined as a loan secured on property or land. There are over 100 lenders in the UK who offer such loans and there are thousands of deals available from those lenders. Loans are available up to 95% of the purchase price or property value (whichever is the lower) and the borrower is required to provide the balance by way of a deposit. This can come from savings, a gift from a relative or in some instances a loan, however, this would be factored into the overall affordability and may mean that you are unable to borrow the amount required to purchase the property. These are just some of the reasons why you should take advice from a professional.

Secured Loans

If remortgaging is not an option either because you are tied into a deal or you don’t meet the criteria for additional funds from your own lender, a second charge lender can provide funds secured on your property in the same way that the existing lender does. This is usually up to a maximum of 95% of the value of the property (less the balance of your existing mortgage) and funds can be used for most legal purposes.

Interest rates are competitive and there is no tie in period with secured loans. There are usually set up costs involved which can be added to the loan if required.

Bridging Finance

Bridging finance is short-term borrowing secured on property. Typical uses for bridging are buying from auction, buying property to renovate when it is not in a condition suitable for a standard mortgage and when the sale of your property is not completing until after your purchase has gone through and you require funds to pay the seller. With bridging finance the interest can be rolled up at the start of the transaction and paid from the proceeds of the loan, meaning you have no monthly outlays but likewise reduces the amount of cash available at the outset.  Bridging loans can be made available quickly, but the interest rate is usually higher than a standard mortgage or secured loan