While Halifax used to offer bridging loans, like many high street banks they stopped offering this as a result the credit crunch of 2007/8.
After the credit crunch, unregulated home owner loans were stopped, and borrowing regulations in general became much tighter.
Halifax continue to offer long term business finance, including mortgages.
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What are the Alternatives to a Halifax Bridging Loan?
At Business Expert we have access to the whole of the bridging finance market, with the latest rates at our fingertips as well as knowledge of what LTV each provider will offer.
Our service is that of a broker, except we don’t charge the typical 1% additional fee. Instead we charge nothing, our service is 100% free.
Equally, our service does not impact your quote in any way, you would be quoted the same if you went to the lenders directly.
We make our money via a commission paid from the financial providers so for those applying it’s an entirely free and useful service.
What Banks do Bridging Loans?
For reasons state above, very few high street banks still offer bridging finance of any kind, and those that do offer it generally to existing clients.
Bridging is now largely the province of specialist lenders, who are as follows:
- Alternative Bridging Corp Ltd
- Apex Bridging Ltd
- Aspen Bridging Ltd
- Assetz Capital
- Avamore Capital
- Bridge Invest Ltd
- Bridging Finance Solutions
- BY Loans
- Central Bridging
- Close Brothers Bridging Finance
- Devon & Cornwall Securities Ltd
- Eastern Credit Ltd
- Finance and Credit Corp Ltd
- Funding 365
- Goldentree Financial Services
- Heritage Commercial Finance Ltd
- Hope Capital
- InterBay Commercial
- Interbridge Loans
- Lowry Capital Ltd
- Masthaven Bank Ltd
- Mercantile Trust
- Mint Bridging
- Nucleus Commercial
- Oblix Capital
- Octane Capital
- Octopus Real Estate
- Ortus Secured Finance
- Peninsula Finance Plc
- Precise Mortgages Short Term Lending
- Rocket Bridging
- Rocket Bridging
- Roma Finance
- Shawbrook Bank
- Tuscan Capital
- Ultimate Capital
- Ultimate Finance
- United Trust Bank
- VATBridge Ltd
- W M Mann & Co
- West One Loans
How Much Does a Bridging Loan Cost?
Like most short term loans, bridging finance can be expensive. Expect to pay a monthy interest rate of between 0.3-2%.
In addition, and this varies on the lender, there may be other fees as follows:
- Arrangement Fee – 1 to 2% of the total loan amount
- Exit Fees – Approximately 1%, although not all lenders charge these
- Administration Fee – this will depend on the complexity of the finance
- Legal Fees – lenders usually require you to pay their legal fees
- Property Valuation Fees – this is usually paid to the surveyor directly
- Broker Fees – most brokers will charge additional fees of at least 1% for their time. NB: here at Business Expert we charge no brokers fees, but are paid a commission by the lenders.
Are Bridging Loans a Good Idea?
Bridging loans work best when a particular time dependent deal requires short term funding, and there is a clear exit strategy.
Commonly, bridging finance is used to bridge the gap between two situations, such as the purchase of one property and the sale of another. In this situation, the property sale is the exit strategy and means the loan need not extend beyond a carefully considered period.
In short, bridging loans are a good idea for situations where the risks, costs and terms and full understood and factored into a larger business transaction with margins large enough to make it all worthwhile.