What is a short-term/bridging loan?
A short-term/bridging loan is a short-term loan that can be secured against a property and is designed to ‘bridge a gap’ until longer-term finance can be arranged, or an underlying security is sold.
A bridging loan has inherently flexible features that make them an attractive alternative to mainstream lending. One of the most favourable aspects of a bridging loan is the speed that they can be arranged in. Terms can often be agreed within hours of an initial enquiry and funds released in a matter of days. Learn more…
What can I use a bridging loan for?
A bridging loan can be used in a wide variety of instances. Whether funds are required for buying-to-let, purchasing a property at auction, conduct refurbishments or providing your business with capital, MT Finance is here to get bridging loans completed in a matter of days.
How much can I borrow?
MT Finance can lend between £50,000 and £10,000,000, and funds can be in place within a matter of days.
How long can I have the short-term/bridging loan for?
The terms from MT Finance are flexible and can range from minimum of 1 month to a maximum of 24 months. In addition to this, there are no fees or charges for early repayment.
How long will it take to get the funds?
At MT Finance, our processes are designed to provide finance quickly. Terms can be agreed within hours with funds in place in days. It takes an average of 11-14 days to complete, but we can complete loans earlier, depending on your circumstances.
What type of security do you accept?
MT Finance accepts security on residential properties, commercial properties or mixed residential/commercial assets. Unacceptable property types include land/ care homes/ places of worship/ schools/ trading pubs and hotels/property that is not based in England or Wales.
Will bad credit affect my application?
MT Finance will take a view on a loan request even if the applicant has a bad or adverse credit history, has previous CCJs or is in arrears.
In addition to this, no personal guarantors are required, and no credit scoring will take place.
What are your rates?
Our rates start from 0.75% for both a first legal charge bridging loan and a second legal charge bridging loan. However, MT Finance evaluates each application on its own individual merits, so our pricing is flexible.
What are your repayment methods?
Our loans are structured to give you the time and space needed to fulfil your goals. Our typical loan structures include interest rolled, monthly payments, interest deducted and flexible repayments.
What fees are charged?
We only charge fees for the following:
Valuation fee: This covers the surveyor’s costs for carrying out your property valuation.
Arrangement/ Facility fee: The cost of setting up the loan, usually around 2% of the loan
Administration fee: The cost of our administration of the loan
Legal fee: usually charged at a set rate and pays our legal fees for completing the loan
There are no other up-front fees, exit fees or early repayment fees.
Are there any up-front fees?
We have no up-front fees. The only fee which is payable in advance is the valuation fee.
Do you charge exit fees?
No. MT Finance do not charge any exit fees. Our loans are subject to a minimum 1-month term, after which you may repay the loan early or make lump sum payments, without incurring any fees.
Can I pay my short-term/bridging loan off early?
Yes. After the initial minimum 1 month, MT Finance does not charge early redemption penalties if you wish to pay off the loan earlier than contracted.
Will you lend on a purchase at undervalue?
Yes. MT Finance will lend up to a maximum of 70% LTV of the open market value or 90% of the undervalue purchase price, whichever is the lower figure.
Do you lend to first-time property investors?
Yes. MT Finance welcomes first-time investors.
What information will you require?
In order to provide you with indicative terms, we will require the information found on our enquiry form, including loan type and amount required.
What is a first legal charge short-term/bridging loan?
A first legal charge is a principal loan on a property. In the case of first legal charges, the lender takes precedence above all others; being the principal lender of the loan.
As an unregulated lender, MT Finance can provide first charge loans on properties where you and/or any family member do not live or intend to live. Click here to find out more about first legal charges with MT Finance.
What is a second legal charge short-term/bridging loan?
A second legal charge is secured against a property that already has a loan or mortgage outstanding. Second charge loans require consent from a first charge lender.
Click here to find out more about second legal charges with MT Finance. As an unregulated lender, MT Finance can provide a second legal charge on a residential property where you or family members live if it is for business purposes.
How can I trust MT Finance?
We have been providing fast and flexible bridging loans since 2008. Since then we have won multiple awards for the services we provide and take great pride in the client testimonials that we receive on a regular basis. We have achieved this by giving every application the attention to detail needed to meet the varied needs of each specific client.