Commercial Bridging Loans for almost any purpose, direct from the lender!

Commercial Bridging loans can be used for many reasons...

• Buying commercial property quickly
• Investment property
• Buy-to-let property
• Auction property
• Cashflow help
• Tax bills
• Development property
• Business Property

Deal directly with the lender, funds available fast.

• *100% of purchase price possible (further securities may be required)
• No middle man
• Simple and efficient application procedure
• Interest can be added to the loan
• No minimum term (purchase only)
• Open ended bridging available

Great Deals

• Rates from 0.75%

ADS Mortgage & Financial Planning offer personal solutions for all of your personal financial planning needs. ADS offer mortgage advice and access to mortgage contracts which are representative of the whole mortgage market.

From our head office based in Maidstone, Kent, and with advisers covering the whole of England, ADS are able to offer a personalised service that ensures you receive advice that’s best for you.

Whatever your mortgage need – we aim to help.

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About commercial Bridging Loans

• What is a commercial bridging loan?
• What can they be used for?
• Who can arrange a commercial bridging loan?
• How do commercial bridging loans work?
• What do commercial bridging loans cost?

What is a commercial Bridging loan?

A commercial bridging loan is a temporary loan taken out usually to solve a cash shortfall when buying property. Usually commercial bridging loans are used when somebody purchases property before they sell their own, or need funds quickly to purchase investment property or properties at auction and do not have the time to put adequate funding in place.

Commercial bridging loans present a greater risk to the lender so the product is usually more expensive than normal mortgages or loans. Because of this, bridging loans should only be considered as a viable option if you are likely to be able to pay it back within six months.

For the purchase of property, the bridging loan is normally secured by getting a mortgage on the new property, and taking out a second mortgage on the property to be sold. This would be dependant on a positive valuation of the relevant properties.

Bridging loans can be arranged for 100% of the property purchase price so long as the value is covered by up to 80% of the value of the property the loan is secured on, less any existing mortgage.

Bridging loans can be arranged from £27,000 up to £1,000 for quick deposit. Larger loans are possible but may take slightly longer to arrange.

Money from bridging loans can be made available at very short notice, sometimes as quickly as 24 hours, but normally takes between 7 and 10 days depending on the complexity of the application and the parties involved

What can they be used for?

A commercial bridging loan can be used for any purpose. The most common uses for bridging loans are:

• To enable the purchase of one property before the completion on the sale of another.
• The purchase of investment property
• Purchasing properties at auction
• The purchase of buy-to-let property
• To relieve cashflow shortages.
• To allow large tax or extraordinary bill payments.
• The purchase of land
• Secure business premises
• Recovery from non paying clients

Who can arrange a commercial bridging loan?

Any UK resident over 18 owning property or suitable security can arrange a bridging loan. Bridging loans can be arranged for people with CCJ's, adverse credit, self employed and anyone else that traditionally have found it harder to get a loan or mortgage.

How do commercial bridging loans work?

Depending on the nature of the loan, the bridging loan value and the securities held, the application process can differ. For most commercial bridging loans, the following process usually applies;

Once your Application has been received and approved, you will be contacted with an offer in principle. If you agree to the offer, the lender will arrange for an urgent valuation of the property the loan is to be secured against.

Once payment has been received for this valuation it will take a maximum of 72 hours, although this stage usually only takes a day.

In the meantime, a solicitor or conveyancer is required to make quick checks on all the usual conveyancing tasks ie the local authority search, checking the deeds of the new property etc.

Once these tasks are complete, the money is deposited in your bank via electronic transfer.

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Glossary of bridging loan terms

• Annual Percentage Rate (APR)
• Applied or Nominal Interest Rate
• Base Rate
• Bridging Loan
• Capital
• Collateral security
• Cooling off period
• Credit Insurance
• Credit Reference Agency
• Deposit
• Early redemption charge
• Fixed Interest Rate
• Loan Insurance
• Second Mortgage
• Total Charge for Credit

Annual Percentage Rate (APR)
All companies lending money or advancing credit are required by law to quote this rate. It will be only one of a number of interest rates you may see quoted. It is also likely to be the highest rate shown.

All loans, credit cards, mortgages and overdrafts may all be quoted at introductory rates but may not quote arrangement fees you may be charged for loans or any higher rate of interest that your borrowings may revert to. This is where the APR comes in. It was originally introduced as part of the Consumer Credit Act of 1974.

The advertised rate on any credit facility may be the rate of interest you pay per month or per year, but it's the APR figures (usually shown in brackets) which calculates the total amount of interest that will be paid over the whole term of the loan. The APR should also take into account any other charges which the borrower has to pay.

Applied or Nominal Interest Rate
This is the rate of interest which the lender uses to calculate the amount you actually owe. It will not be the same as the APR and it may be a slightly lower figure as it may not include all charges.

Base Rate
Also referred to as the repo rate, the base rate is the minimum rate at which banks are prepared to lend money - it acts as the benchmark for interest rates of other lenders. The high street banks' base rate changes following the Bank of England's signals through its daily money market operations.

Bridging Loan
A Bridging Loan is a short term loan, mainly used for the purchase of a property where funds are required for a limited period of time, for example where a purchaser wishes to secure a new property even though the sale of their existing property has not completed.

Capital
A sum of money. The capital is the amount you have invested or borrowed as distinct from any return you may get from an investment or any interest you may be required to pay. It is used throughout the term of a mortgage to describe the amount outstanding that you owe, excluding charges or interest.

Collateral security
This is extra security provided by a borrower to guarantee their intention to repay borrowing. This security is likely to be in the form of deeds to property.

Cooling off period
Under the Consumer Credit Act, 1995, you have the right within 10 days to reconsider a credit agreement (loan or credit card offer) and refuse in writing the agreement on offer without obligation. If you agree to waive this right, the contract will take effect immediately.

Credit Insurance
This is a payment protection insurance policy to protect you should you take out a loan and then fall sick or be made redundant. The policy will cover your monthly loan repayments for the period of hardship / illness.

Credit Reference Agency
Credit reference agencies hold files on the financial records of most adults in the UK. The file may hold details of: people on the electoral register at your address(es); your credit agreements, including details of any late payments & defaults - this can be held for up to six years; court judgments and bankruptcy orders against you - these are also be held for six years; previous applications for credit; and people living at the same address as you, such as your family.

These agencies do no more than supply information to lenders. The lenders use the information as part of their credit scoring. If you'd like to have a look at your own files, contact the agencies. You can order your credit file from the main agencies over the internet and your file will be sent back to you within seven days When you receive a copy of your own credit record, if you spot information you think is incorrect, write back asking for the record to be amended.

The three main credit reference agencies are:

Deposit
A deposit is the sum of money you put down as the first installment in a series of payments. In purchasing property it is the sum payable by the buyer as a sign of good faith to the seller when the initial agreement is made.

Early redemption charge
This is a charge made by a lender which is payable on certain types of loan if the loan is redeemed or part-redeemed within the specified early redemption charge period.

Fixed Interest Rate
The rate of interest you pay on a loan that is fixed for a set period of time. If you borrow at a time when interest rates are low then you will continue to benefit from the low rate agreed at the time you borrowed even if interest rates rise.This type of agreement allows you to budget easier as repayments will not fluctuate.

Loan Insurance
Your lender may insist that you take out an insurance policy to cover any loan that you arrange with them. The insurance policy will cover the repayment of the loan in the event of your inability to make the repayments either through death or loss of earnings.

Second Mortgage
Otherwise known as a secured loan, a second mortgage is an additional mortgage taken out on a property where a mortgage already exists. The rate of interest on a second mortgage is likely to be higher than that of your first mortgage to reflect the fact you're borrowing more heavily and so deemed to be a higher risk to the lender.

Total Charge for Credit
This is the full amount that you will be required to pay. It includes the loan amount advanced, interest payable plus any administration fees, costs, and insurance charges. It is the figure that is used as the basis from which the annual percentage rate (APR) is calculated.

What do commercial bridging loans cost?

You will be charged a set interest rate, which is usually referred to in terms of a percentage per month. This can be as little as 0.75% depending on the amount of the loan and your status.

At this rate, if you borrow £100,000 at 0.75% per month, the loan will cost you £750 per month.

Being a principal lender, we can offer you access to bridging loans at the lowest rates, quickly and best of all there's no middle man.

• Rates from 0.75%
• Principal Lender
• Funds available fast
• No middle-man

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Instant Decision on your commercial Bridging Loan

We can arrange an offer in principle within hours of your initial contact, sometimes even faster.

Bridging Loan Application