There are several factors that will influence the rate of interest set by lenders, they include:

• What the Bridging Loan will be used for.
• The type of property, the value of this property if using this as security against your loan.
• The size of the loan and the percentage this represents of the total value of the property or asset being offered as security against the Bridging Loan.
• The applicant’s or applicants credit history.
• Any other loans secured against the property, that will not be repaid by the Bridging Loan.

There is no restriction regarding age, making Bridging Loans open to anyone that can provide an acceptable property or asset that can be used as security. Although a Bridging lender may want additional security in some instances, in general, this will only occur when a property being offered does not meet the Bridging underwriters’ criteria in terms of value.

This is likely when the property being purchased is in need or renovation or will be demolished prior to a completely new building being constructed on the site of the new property being purchased, meaning the security being offered is, or may become insufficient in value to cover the Bridging Loan required.

As there is no ceiling on age, this gives those who wish to downsize or look for that forever home an opportunity to consider the whole of market for a suitable property at their leisure. In this particular instance a Bridging Loan offers the ability to make an offer, exchange contracts and complete on a purchase without the need to sell their existing home. This means one can confidently compete with other well positioned buyers not in a chain when viewing or making an offer to an agent or seller, so a cash or first-time buyer has no advantage or bargaining power in terms of how quickly they can exchange or complete on the purchase.  

So now you can look for that perfect retreat without the need to sell your home or likelihood of losing out to someone who can simply move quicker. A Bridge also offers greater control over the whole transaction and gives you a strong hand so you can take time to plan your move without compromise and more importantly, at your own pace.

The timeframe is largely dependent on the applicant providing all of the relevant information required to complete an application to a lender, but in most cases Lumi can provide a preliminary offer within 24-48 hours dependent on the time of day an application is made to a lender. Full Heads of Terms can usually be obtained within 5-7 working days, subject to all relevant approvals from solicitors and valuating bodies, completing their roles within the timeframe (Not to be confused as a deadline). Thereafter most applications can be completed very quickly.

Using Lumi Bridging to find the right lender to break that chain is easy and straight forward, in general terms a borrower can request up to 75% of the value of property. This means you’ll need a minimum of 25% as a deposit. Depending on the ‘Loan to Values’ (LTV) required, a lender may look to reduce the amount of Bridging Finance based on the nature or condition of the property, your personal circumstances and what will the loan be used for.

The basic requirement to make a Bridging Loan application are:

• You a based in the United Kingdom.
• You are aged between 18 – 85 years.
• You have a property or other asset that can be used as security.
• You have a deposit or existing equity of at least 25% of the amount you wish to obtain as a Bridge.
• The Bridging Loan does not exceed 75% of the property value.
• Your current employment does not place you at risk of redundancy.
• You are not on a deferred payment plan or on furlough.