The lending sector offers a myriad of loans. Those loans fund 50% of a property purchase and up to 110% of the property value. The amount lent depends on the appraised value of the property and the applicant’s financial standing. Other factors play a role, too, such as collateral, a guarantor, and credit score. It is possible to obtain 100% bridging finance when the client satisfies several requirements.
To qualify for a bridging loan, a client requires a solid credit score, at least 20% of the new loan’s value in home equity, and a higher interest rate. Since the bridge loan is a type of short-term solution, it leans closer to an interest-only loan than a second mortgage. A client who uses the loan solely to bridge their finances benefits from these requirements.
An interest-only loan bridges finances for investors seeking to flip a property before it becomes a full mortgage. Interest-only payments deliver a lower monthly repayment amount even though the interest rate is higher than a typical mortgage rate.
Qualifying for bridging finance poses a challenge for some, but Mortgage Street seeks to find a solution for all brokers and their clients. If they’re interested in 100% bridging finance, we work with our innovative tools to find a balance between their financial situation, home equity, and credit score.
For well-qualified clients, 100% bridging finance is one option. In some cases, the finance goes a little over 100% to cover costs associated with the financing. We’ll work with our tools to find a solution that gets to 100% finance or close to it for other clients represented by brokers.
Borrowing 100% Bridging Finance Conclusion
It is possible to borrow 100% bridging finance. The application process determines the ultimate amount, but brokers can rest assured that Mortgage Street gives every application the attention it deserves. Our loan specialists have access to innovative tools that offer loan terms to maximize reward and risk. For more information, contact our team.