the benefits of bridging finance
There are several benefits of bridging loans over other sources of mainstream finance. Most clients are attracted by the speed, flexibility and ability to break property chains when raising finance for a property purchase or business purpose.
mtf has developed a strong reputation in the industry for delivering funds at speed at sensible rates which are clearly transparent to the customers. We have been recognised by a number of industry awards including Best Service from a Bridging Finance Provider at The Business MoneyFacts Awards 2017.
Below we list the main benefits of using bridging finance from mtf.
avoid property chains
Property developers and investors are able to use bridging to bypass the traditional property chains associated with a typical mortgage. Applying through a mainstream bank can take at least 6 weeks once you have completed the relevant paperwork and received sign-off. For those savvy investors looking to purchase a property within a limited timescale, bridging loan products gives them the opportunity to access funds within 2 to 3 weeks or sooner, without the long traditional checks associated with a bank mortgage.
access to fast funding
mtf understands that purchasing a property can come with a deadline and the need to complete before someone else does. There are some transactions which are very time sensitive, such as the case of auction finance where you have a 28-day period to provide the outstanding funds for the property.
We have a streamlined process meaning that we have a shorter application form than most bridging lenders and have our own panel of solicitors and recommended surveyors to value your property and complete the transaction as soon as possible.
mtf is passionate about giving our clients full transparency from start to finish. The indicative terms and loan agreement clearly show how much you are borrowing, how long for and the rates charged.
We believe that a bridging loan should either make the borrower money or help save them money – which is why we offer flexibility with no early redemption penalties or exit fees as part of our loan offering.
no credit checks
As a non-status lender, we do not use credit checking to determine your eligibility. Whilst most high street banks and mainstream lenders rely heavily on your credit history, we will always consider those with adverse credit, a history of bankruptcy or CCJs.
Your success at paying other loans and credit in the past is used as an indicator of your creditworthiness and how likely you are going to repay future credit. However, a bridging loan is different to a standard personal loan or credit card because you also have a property which is a valuable asset used as collateral. Hence, you are able to leverage the value of this property in order to access the funds you need.
Instead of credit checks, we prefer to look at the potential of your property and your plans for it. If you have found a property that you can afford and has excellent growth potential, we will gladly consider your application for funding.
One of the biggest challenges for those who are self-employed is getting access to sizeable finance and mortgages. Unfortunately, traditional mortgage lenders see those as self-employed as slightly higher risk because their income is not necessarily guaranteed each month. As a result, the majority of banks will not offer mortgages to those who are self-employed.
Fortunately, bridging finance is more than happy to accommodate those who are self-employed. After all, typical bridging customers are individual property developers who are looking to obtain finance for a property development project.
capitalise on high-growth opportunities
The nature of bridging finance allows you to capitalise on high-return opportunities. For property developers, it is an opportunity to purchase flats or homes and turn them into a profit and strike whilst the market is hot.
For fast-growing businesses, they can use bridging finance as a way to stimulate their growth period. This could involve using their offices or premises as collateral in order to generate capital used for advertising, staff or purchasing inventory.
Bridging finance gives you the flexibility to access funds quickly to make the most of very high growth and then repay your loan when you are in a better position to do so.
no upfront fees or exit fees
For those looking to get their project underway and are monitoring their cash position very closely, they have peace of mind that they can receive their drawdown with no upfront fees.
In addition, should the customer wish to repay their loan earlier than the date agreed, mtf allows them to do so after 3 monthd and there are no exit fees involved. Whilst standard mortgages and several other lenders in the industry charge a fee for early repayment, mtf are pleased to offer such transparency and flexibility. In fact, if you repay early, you may be entitled to a reduction in interest charged since the loan term is shorter than anticipated. You can read more about early mortgage repayments.