Many buy to let landlords have formed limited companies to purchase property to save tax. Some are using bridging finance as they are finding it takes a long time to secure commercial mortgages.

The commercial mortgage application process for newly formed limited companies can take several weeks for lenders to assess the financial viability of (more…)

Research and Development (R&D) tax credits are a government scheme that rewards UK businesses that invest in developing new processes, products or services.

The average R&D tax credit is (more…)

Struggling carpet retailer Carpetright has received a bridging loan for £12.2 million to keep the company in business. The loan is for a period of six months, and the lender charged a fee of nearly £2 million.

Carpetright is negotiating with landlords to reduce rents and is selling off unprofitable stores. The bridging loan freed the company from short-term funding pressures. Analysts said that the company had (more…)

Many lenders are cautious about providing commercial mortgages for retail property purchases.

The Office for (more…)

It has been revealed that 42% of brokers want higher loan to value (LTV) bridging loans.

The Bridging Trends Report for the last quarter of 2107 found that the average LTV was 45%, a decrease from 49.6% in the third quarter of 2017. This has prompted the brokers’ request for higher LTV.

It is rare to be able to find (more…)

Banks can be cautious when lending, especially when the loan is complex, or the business has a low credit rating. (more…)

The bridging finance market is very competitive, which is why some lenders offer incentives to attract borrowers.

A lender may use tactics often used by retailers, price match guarantees where they will match the price of a competitor’s deal if it costs less.

To secure a loan property is usually used as security. Before a loan has final approval, the property must be (more…)

New regulations to be introduced in April 2018 stipulate that owners of rented commercial and residential with energy efficiency ratings of less than E cannot issue new tenancy agreements until the energy efficiency has been improved.

Landlords with old buildings with the lowest energy efficiency ratings of (more…)

One use for bridging loans is when mortgage funds are taking too long before being available. A recent case demonstrates how bridging finance can save a time-sensitive deal.

An asset management company owned three offices in a business park and wanted to purchase another three units in the same location. To secure the units, the business paid (more…)

There are many large derelict buildings that are not in use. Developers using bridging loans can purchase and refurbish these buildings to save them from being demolished.

Many large house builders purchase derelict or semi-derelict buildings, intending to demolish them and build new homes on the land. The derelict building may have planning permission for (more…)