Self Build Mortgages & Bridging Finance

Self-Build Mortgages & Bridging Finance

Bridging Finance is a very quick way to buy a property until either finance can be arranged or to carry out renovations allowing to then re-mortgage or sell a property at an increased valuation.

 

Bridging Finance for auction purchases.

Quite a few people buy a property through auction. Auctions generally require completion within 28 days of the sale, so speed is needed to complete the purchase. We have lenders and solicitors that can complete very quickly supporting you to buy properties at auction.

The beauty of a bridge is that they can be put in place for between 1 and 36 months with the ability to extend or re-bridge to another company if you need to.

Best Bridging Loan Rates

Rates start from just 0.49%pm dependant on your borrowing needs and the value of the property.

Are there fees with Bridging Finance?

The lender’s fees and monthly payments are rolled up into the bridge which means there are no monthly payments to be made. The idea is to pay off the bridge as quickly as possible. This will save you a lot of money in rolled up monthly payments.

Finance for Developers

Developers often use bridging to build houses. As each house sells, they pay off part of the bridging loan. Sometimes a developer will re-bridge as they have gone over their maximum term. We have lenders who will take out other bridging companies and raise money to finish off the development

Lenders will need to see an exit route, either by estate agents valuation to a decision in principal from a mortgage lender. We are here to help you all the way from start to finish. We can provide the decision in principal and the exit route through a mortgage

What is a Self-Build Mortgage?

As the name suggests, a self-build mortgage is a loan you take out to fund a property you are building yourself. The main difference from a standard residential mortgage is that you receive the funds in stages as parts of the build are finished, rather than as a single lump sum

How much deposit do I need for a self-build mortgage?

Typically, you will require a 25% deposit however this does vary between lenders, with some lenders that say they will lend up to 95% of the land and build costs.

How much can I borrow for a self-build mortgage?

Borrow up to 80% of the property’s value on a repayment basis, or up to 65% interest-only, however these rates change frequently and we can advise you on your specific needs at the time of your enquiry.

Self-Build or Bridging Finance?

Self-build mortgages behave in a different way to traditional mortgages, releasing funds in stages that create the cashflow needed for building.

Bridging loans can offer a way for borrowers to get short-term property finance. As the name suggests, this kind of finance is intended to ‘bridge’ the interim period between a borrower being required to pay for a property or plot and them being able to receive funding to do so.

How can Thomas & Co Help

We are whole of market Bridging Brokers catering to all types of borrowers, from people with clean credit looking to buy quickly to people with serious credit issues trying to stop repossession of their home until a new lender can be found or the property sold at full market value.

Builders and Developers

Generally require a small amount of money or well into the Millions to develop a site. We at Thomas & Co have access to those specialist lenders. Provided the land is mortgage free and full planning is in place, Thomas & Co are often able to secure finance against the site with 100% build costs available to the developer.

Development Finance is set up with Draw-Down payments released at certain stages of the build. Payments and lenders fees are generally rolled up into the loan. Very similar to a Bridging Loan.

Providing you have “Approved Plans” we can help you secure the finance you need. From a one-off self-build, to full housing estate builds, we can help and advise you on how to obtain the very best interest rates in the market.

Everyone’s bridging needs are different. Call Thomas & Co to discuss your needs in more detail.

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