Bridge Doctor

Please fill in the form below with your question:





Bridge Doctor

Most Recent Questions:

Question:Is there any lender who would lend on 100% of purchase? My client has just bought property at an auction.
Answer:

Many bridging finance companies advertise that they offer 100% of purchase price, but in reality on 1 single property it is around 80% of purchase price, or 70% of OMV, whichever is the lower figure. To obtain 100% of purchase price, what most companies do is lend the 80% on the purchase, and then look to other property that the client may have to see if they can get the extra 20% on a 2nd charge either on their main residential property or other BTL that they may have. Typically they gear up to 65% LTV on 2nd charges minus whatever the first charge is.



Question:I have a client with £60k per annum investment income. He wants to build his own house. Is their any lender that will take investment income into account to complete a self build.
Answer:

The borrower's income is relevant if (a) they intend to service the interest and / or (b) they intend to refinance the bridging loan and will depend on their income to obtain that refinance.  In that case, the lender will need to consider two factors (1) what exact form does the investment income take - in other words is it reliable or prone to year fluctuations? 



Question:I am looking to buy a property outright (for around £200,000) and would then need to borrow about £40,000 to renovate the ground floor. Is there such a thing as a bridge to build loan (secured against the value of the house) which would not require proof of income?
Answer:

All bridging companies would lend against a purchase of a property that requires renovation and or refurbishment. The only thing that would differ would be the LTV and fees involved. The majority of companies would lend around the 60-65% mark for this type of purchase, but generally speaking the client would have to have the costs of the work covered. If the client had other property (main resi or btl) then they could explore a second charge bridge on that security in order to raise the extra required funds.