For those who need a bridging loan of between £3 million and £10 million, they fall between two areas. The loan is too small for large finance instructions and too large for many small alternative bridging finance lenders.
Individuals and businesses wanting loans of this size may have to approach many lenders to find one prepared to lend over £3 million. It is better to use a bridging finance broker who will know of a lender prepared to consider high value bridging loans applications.
Some lenders are particularly interested in property development where a developer builds new property or redevelops existing property. A bridging loan finances the development then is repaid after the property or properties are sold.
Due to the size of the loan specialist lenders need to be able to carry out a detailed assessment of the loan application. They employ quantity surveyors and planning consultants to help create a detailed profile of the development. This takes time and effort but is beneficial to the developer as they get the assurance that their business plans are sound.
Loans of up to 90% of the development costs can be provided so that the developer only needs to provide 10% of the costs out of his own funds. The developer can arrange more than one loan at a time so that they can work on a few projects.
A bridging finance broker can assist borrowers at all stages of a large bridging loan.