There are many benefits of bridging loans relative to other forms of financing. If money is only needed for a limited period, it is also the cheapest way to collect the required funds. Besides, they are easy to arrange, have versatile loan requirements such that permits can be issued easily without rigorous checks, and can be obtained for all forms of property, including property that is not appropriate for other lenders.
Here we have composed a guide for you about some of the best bridging loans companies which will also explain a little about each company and help you to choose the best for yourself.
- United Trust Bank
- Hope Capital
- Lend Invest
- Octane Capital
- MFS UK
- Pivot Finance
- Octopus Real Estate
As a supplier of commercial and private finance products, United Trust Bank is one of the few bridge lenders that can genuinely fulfill the needs of any customer. As United Bank provides a wide variety of product styles to suit several diverse technologies, it can set up repayment plans to suit each particular customer and project. This versatility is crucial when working in the bridging loans market, as it allows companies and investors to take advantage of favourable financial conditions to grow more rapidly and efficiently.
United Trust Bank provides a variety of loans, which are controlled by the Financial Conduct Authority, to allow it to use the owner-occupied property as collateral while constructing a loan package. This is a very useful choice for many investors, as it allows them to free up money for other uses, which renders United Trust Bank the first place of call for several different customers.
In the competitive bridging finance market, the focus is paid to detail to truly stand out from the competition, and Hope Capital achieves this by offering completely adaptable finance solutions to a range of needs. As a family-run company solely backed by private capital, they are in a position to maintain full leverage over the terms of any deal; there are no lengthy back-and-forth negotiations or red tape.
The projects for which Hope Capital offers funding are almost endless; while they need a first-charge guarantee for their debts, they can face almost every obstacle. They effectively bailed out land developers to save lengthy developments from bankruptcy, assisted their creditors to reap the benefits of bridging loans forgiveness deals from other funders, and took the ball when other bridging bankers let their customers down. This emphasizes the versatile mindset and competitive essence of Hope Capital and reflects what it gives to borrowers; a lender who can fix their economic troubles.
Lend Invest is one of the pioneering peer-to-peer bridge lenders of the 21st century and one of the few banks to truly leverage the opportunity that P2P can offer. Unlike most other bridging providers, they are willing to provide their creditors with a complete suite of financial options while maintaining a high level of competence and stability. This is partially due to the lender’s in-house subscription staff and the dedicated appraisal department; they can assess which loans are suitable for the applicant under certain conditions, and to adjust the terms of their loan to accommodate their purposes.
The broad variety of financial products available from Lend Invest provides high-value funding for the construction of properties, which can be used from the inception of the project through to its execution. It is possible to acquire land before construction begins, to kick-start the project with bridging financing, and then to renegotiate the loan to have an escape, all with the same provider. Since these loans are directly supported by “involved borrowers” and not direct lenders, Lend Invest can fund projects rapidly and reliably; it does not need to connect with several loan providers and can instead make decisions instantly, which is completely essential in the fast-paced property construction market.
What keeps Octane Capital apart from rival lenders is the full absence of service sheets and loan term standardisation by the company. Octane understands and recognises that the specifications of each client are distinct, ensuring that any loan issued is customised accordingly.
Offering loans from £150,000 to£25 million and beyond, Octane Capital loans to residential premises, semi-commercial properties, commercial properties, and property. Designed on the principles of certainty, expertise, access, and versatility, Octane Capital is committed to redefining ultra-aware financing to the most perceptive borrower. This incredibly quick financial engine guarantees loans customised to the individual’s needs.
Growing up and thriving in the bridging industry requires something special; lenders must be able to set themselves apart from their rivals and offer genuinely outstanding service to their customers. Market Finance Solutions do this by designing tailor-made lending solutions for each customer and developing a lending system that fits the specific needs of its clients.
They can do this partially because of their long history as lenders, but only because they’re the primary lender; this provides many advantages to both them and their customers. Since they are lending their funds, there is no transitional time of negotiation between Business Finance Solutions and their supporters; yes or no decisions are made very easily, and most loans are done within just 7 days.
Since2012, Pivot has been providing short-term non-regulated asset loans under the Pivot name for the last few years. Pivot is part of a larger community of real estate firms, which comprises an existing residential property developer (Fruition Properties), a digital property fund manager (Prop.), a development firm (Area29), and a building management company (Xenon Properties). What this means is that they grasp all facets of the life cycle of land and can contribute to the borrower’s requirements.
Thanks to this broad range of experience, Pivot will provide investment options across the entire funding continuum, providing short-term “bridging” mechanisms for residential, industrial, and mixed-use securities. Besides, Pivot can exploit the abundance of capital at home to deliver a robust venture financing offering, whether heavily refurbished or built-up and can also suggest lending on the optimistic nature of site planning.
Octopus Property is a well-established primary lender in the bridging finance market and provides a wide range of products to suit various borrowers. Where they stick out from the majority of the competitive industry is their versatility and the choices they offer to their customers. While most bridging lenders only offer short-term quick-fix funding, Octopus Property also enables borrowers to negotiate debts of up to 3 years in length that help them satisfy the needs of bigger, longer-term property projects.
This kind of diversity is not straightforward, and Octopus Property has a high degree of experience in their field; this enables them to comfortably advise their clients about the services which better cater to their needs and how they can best arrange their loans. A wide range of payment options are on request, and clients will determine whether they’d like to pay fees before the completion of the contract or to pay interest over the loan period.
MT Finance is an extremely versatile lender that can adapt its offerings to suit the specific needs of various customers. This is important for a market as complex as that of bridging finance, as it enables them to develop financial solutions that satisfy the demands of a wide range of different clients. At MT Finance, they provide a suite of financial services to allow developers and buyers to kick-start projects in a broad variety of fields and to have loans devoted solely to refurbishment, acquisitions, chain breaks, and auction transactions.
In contrast to having a wide variety of loans for diverse needs, MT Finance is fortunate to be able to change the terms of service of each of its services to satisfy the requirements of the clients. This personal attitude sets them out from several other lenders and sets them up as a leading supplier of payment solutions.
- WHAT ARE THE INTEREST RATES OF A BRIDGE LOAN?
The interest rate on a bridge loan is usually between 1% and 1.5% each month. Although some lenders have a much higher offer than others, so you must choose carefully.
- WHAT IS AN AUCTION FINANCE?
Auction financing may refer to any short-term auction bridging loan commodity that can be structured and released easily before further, more stable funds can be collected or obtained. This is an important source of financing for many investors to let owners or developers of properties who also need to collect funds urgently.
- WHAT IS A SWING LOAN?
A swing loan or bridge loan is a short-term investment product that is ideal for buyers looking to buy a new home while waiting for another to be sold. In the vast majority of instances, the funds are protected through the use of equity locked up in all securities as leverage.