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The difference between bridging finance and a mortgage is that the loan can be secured against a property that may not be suitable for a normal term loan i.e, an uninhabitable property that is to be refurbished, a property whose title will be changed, or if the class of use of the property is to be changed throughout the course of the loan. In fact there are many different uses for a bridging loan.

Funds are available much more quickly than a mortgage; typically within 3-4 weeks, and the bridge loan is often based on the OMV of the property, rather than the purchase price, which is useful when buying BMV or from a receiver/auction house.

Also, the interest payments for the bridging loan facility can be rolled up throughout the term, which means there would be no monthly interest payments to worry about.

As a short-term loan, they are generally taken out for between 3-12 months, but can be for up to two years.

The amount you can borrow and the interest rate are dependent on many factors. Below is a list of the main factors that affect the loan amount that you can borrow for your property finance:

• Borrower’s experience
• Borrower’s credit history
• Borrowers background net worth
• The land cost/purchase price
• The build cost/refurbishment cost.
• The gross development value
• Whether it is a new build, mixed use or multi unit.
• The feasibility

This entirely depends on the size of your deposit, your personal situation, and most importantly, the rental income you will receive from the property. Lenders usually require you to earn more in rent than your monthly mortgage payment.

Yes, this is usually the case. Lenders typically ask for a deposit of between 25% and 40% of the property value, meaning you will need a significantly higher deposit than you would for a residential mortgage.

The interest on your commercial mortgage is tax-deductible. In addition, any subsequent increase in the value of your property will be reflected in your capital.

While Commercial Mortgage interest rates may be higher than those charged for a residential mortgage, you are more likely secure better interest rates than if you take out a typical business loan.

From experienced contractors wishing to strike off on their own to experienced developers facing cashflow issues due to the right project emerging at the wrong time, 100% Development Finance can be invaluable for anyone who needs entire funding for a project without any upfront costs.

Great question! The payback terms of 100% Development Finance differ from lender to lender. Some lenders require a 50/50 profit share. In other instances, you might be required to pay interest on funds in exchange for splitting the profits in your favour. In order to entirely avoid profit sharing, additional collateral is necessary.

Absolutely! We’re on your side and with you every step of the way as we help you to secure funding for your projects and achieve greater heights. We have access to a huge network of lenders to ensure we can match your circumstances to a suitable source of finance.

While there are many similarities between the two, the main difference is that with Development Finance, funding is usually released incrementally by the lender throughout the duration of the project. At varying stages of completion, as the value of the property increases, additional funds are released with the new property value serving as collateral.