Discover how our Commercial bridging loans can help your client unlock the capital needed right now to secure an investment property.
Our commercial bridging loans are designed to cover purchases or refinancing of commercial properties. They can be used for any purpose such as to purchase a property, new business, change of use or refurbishment. If the overall use of the property of both residential and commercial elements, please visit our semi-commercial product page.
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Rates are subject to the risk a certain project presents, which is why you will find the majority of bridging lender’s semi-commercial and commercial rates are higher than they are on their residential offering.
However, using a bridging loan for commercial property can present a fantastic investment opportunity, which is why they are so popular amongst property developers and investors.
A commercial bridging loan is short-term finance secured against commercial property. It is commonly used to help borrowers purchase potentially new office premises, or landlords to purchase commercial property to lease out to other businesses. It can also be used to raise capital to gain access to quick cash for business purposes such as solving short-term cash flow problems, or investing in new markets. Here are just a few examples of businesses we have supported with our Commercial product:
If the borrower has a feasible exit strategy, we are more than happy to assist. So, whether an individual, corporation, partnership or limited company is looking to apply for our Commercial bridging loan, we can help.
There are many advantages, however, one of the key reasons is that, unlike commercial mortgages, we will consider buildings which are in a poor state of repair, a situation many unoccupied commercial buildings are often in. Other advantages include how quickly funds can be arranged, flexible payment options and the ability to provide customised solutions.
At Hope Capital, we offer efficient full valuations for commercial projects, which is the process when someone physically views, inspects and analyses the property. We are proud to work with several leading comprehensive valuation partners and will appoint a valuer on our behalf to visit the property. On some occasions, we may be able to accept a previous valuation survey if it has been completed recently. The valuer will assess the condition of the property or land, and the value of similar assets in the area to arrive at a valuation amount
Here at Hope Capital, we are completely transparent about our rates and fees, meaning all fees will be addressed from the get-go so all parties involved are on the same page. The costs involved will depend on the project, however, here are the fees which borrowers will need to consider:
There are various differences between a bridging loan and a mortgage, with the most suitable options depending on the borrower and the scenario. Both options have different criteria and their advantages and disadvantages.
Bridging finance is an advantageous and efficient way to secure funds when buying a new property when a mortgage or a personal loan is not viable, e.g. if the property is derelict and a mortgage provider, therefore, does not feel comfortable providing a loan much more quickly, often in a number of days rather than weeks. Whereas a mortgage is a more suitable option for someone who is looking to borrow money over a longer period, with lower interest rates.
Regardless of whether your client decides to opt for a bridging loan or a mortgage, it is paramount they do lots of research to compare which is the most suitable option.
The perception that bridging finance is an extremely expensive option could not be further from the truth. The reality is that while rates have aligned to changes in the wider market, they have fallen dramatically over the past few years, so are now considerably lower than they used to be.
To kickstart the application, we will always look at the borrower to assess credibility. Our team will need to see proof of identity, the borrower’s address, as well as other documentation. Don’t worry, we’ll walk through this process with you when you make an enquiry.
Of course, we will be keen to know more about the property, and while this is not always a deciding factor in terms of whether we can provide a loan or not, sometimes we will ask to see the borrower’s property portfolio to see if they have experience in this area. However, this will all depend on the purpose of the property, i.e. if it is commercial, land etc.
We will need to understand what our borrower is using the loan for as different circumstances require different levels of documentation and approaches. For example, using a bridging loan for an auction purchase will require a different process than investing in a property for business purposes.
This is a key one. To ensure we are comfortable providing the loan required, we will need to know how the borrower will plan on repaying the loan after their term is completed – this is also known as an exit strategy. Examples of common exit strategies include moving on to a buy-to-let mortgage, paying the loan off from the sale of the property etc.
Great to hear you are interested in working with Hope Capital! To make an initial enquiry, contact our sales team via a method of your choice. Once we have received your enquiry, we will be on hand to help guide you through the process.
As soon as we have received your enquiry and had an initial discussion about the deal, we will issue you with an AIP.
Time to submit the application form. Our team are on hand if you need any assistance with this.
Once you have submitted the completed application form, you can be safe in the knowledge that your case is in our pipeline, and a member of our dedicated underwriting team will be in touch to introduce themselves.
We will then commence our initial due diligence and issue formal terms. Our step-by-step guide will outline the process and introduce our key partners such as valuers and solicitors to ensure that all parties are kept in the loop throughout, to achieve a speedy completion.
Before we pass your deal over to our portfolio management team, we will finalise any legal elements involved in the loan, ensuring the borrower is informed of the progress, so funds are turned around as quickly as possible. Any proc fees will also be swiftly paid as soon as funds have been released.
Throughout the term, the borrower’s dedicated case manager will be available to assist with any questions and provide everything needed for the smooth running of the loan, including the release of refurbishment funds if required.
Once the loan is ready to be repaid, the case manager will provide redemption statements and will liaise with all parties to assist with the timely redemption of the loan.
X 0.5% exit fee applies to heavy refurbishment
* MAX LTV available for homeowners and large portfolio
