Golden Trust Capital is more than just a finance broker - we are a vessel that eradicates confusion. We understand the world of finance and are here to simplify it for our customers. For instance, bridging finance can be seen as complicated and troublesome for some of our introducers, mortgage brokers and their respective clients. At Golden Trust Capital, we cut through the jargon by digitalising the process and providing our customers with reports and analysis at the touch of a button. This eliminates the need for any head-scratching and replaces it with clear and precise options. The end goal is to provide you with the right lending facility with all the essential fee calculators. Our objective is something that is often heard in the industry but not always practised, treating your customer fairly.
Bridging finance continues to experience huge growth year on year. This is largely contributed to a lack of appetite and the tightening of lending criteria by mainstream lenders. This is where a company like Golden Trust Capital has excelled. We work with bespoke lenders who have diversified their product ranges to cater to almost any scenario that requires short-term, property-backed finance. This in conjunction with an influx of new lenders, a wealth of funding options and a readiness to issue funds, has given rise to improved competition than the market has ever seen.
Experience has taught us that speed is essential for short-term finance cases. With that in mind, you can rely on our team of award-winning experts to provide you with a premium service. Not only that, our specialist finance experts work alongside others in the know and are therefore well placed to provide exit solutions that are so key to the success of any short-term finance.
Whatever your enquiry and no matter how involved you want to be with the case, we have a service that can be tailored to you and your client's needs and can offer access to lenders that are not available direct, market-leading exclusives, great rates and enhanced procuration fees.
What is short-term lending?
Short-term lending, which can also be known as bridging finance, is a short-term loan secured against property or land and is used to ‘bridge’ the gap until longer-term finance can be arranged, or the underlying security is sold. The key to the success of short-term lending is to ensure that a viable exit strategy is firmly in place upon application.
Types of finance covered in this with bridging.
First and second charge loans on any type of property incorporating
- Residential.
- Semi commercial.
- Commercial.
- Land with or without planning permission.
Example of your client circumstance:
- Needs to complete a purchase before their current property has been sold.
- Is purchasing a property under market value and a quick completion required?
- Is under auction terms with a short completion deadline.
- Requires a property downsize to release equity in their existing property to permit them to purchase the new property before the sale of their existing property.
- Wants to purchase a property which needs refurbishment and it is considered unsuitable for normal mortgage purposes with many of the mainstream lenders, (e.g. no bathroom or kitchen).
- Requires an equity release from a land or a property cash flow purposes on a short-term basis, (e.g. inheritance tax bill, divorce settlement etc).
Here are some of the common bridging finance options available currently:
- Refurbishment, Conversion and Renovation: This time of bridging finance allows a client to purchase a property, complete refurbishment, conversion or renovation works and sell quickly. This is often referred to as ‘Flipping’. A loan will support the client with the buying of the property and then they can commence the refurbishment work prior to the deal being offered to a mainstream mortgage lender for longer-term finance.
- Re-Bridging or development Exit: Refinancing or remortgaging a previous bridging loan taken out for more time to exit
- Break of Chain Finance: This type of loan enables clients to complete the new property purchase while their current residence is still on the market. This can be crucial in a market where there are more buyers than sellers. In order to get a lower Loan to Value (LTV) and better interest rate option, the lender will usually take charge of both properties.
- Daylight Bridging: The provision of bridging finance means a client can re-mortgage on day one. This effectively is a one-day loan meaning a client’s solicitors can confirm the title prior to drawing down a re-mortgage.
- Bridge to Let: Golden Trust Capital has access to a superb product that allows an initial bridging loan with the ability to switch to a Buy to Let mortgage after an initial period. The rates and terms are competitive and the underwriting process is slick.
- Credit Repair: Finance that means a client can resolve any credit issues that means their credit file is unsuitable for normal mortgage lending. This can be a period of grace so that they reorganise their affairs and improve their credit score so that the more mainstream mortgage lender would consider lending to them when their position has improved. Most forms of adverse can be considered.
- Cash Buyer Status: This is a bridging loan that effectively gives a client a cash-buyer status. A loan is often agreed and formalised within a very quick time, normally 24 hours, meaning clients are able to negotiate significant progress and possibly discounts with the promise of a very quick purchase.
- Under Value Purchases: This will provide a facility that allows the client to negotiate against the value of the property/land rather than the purchase price. This is particularly viable if the property is in a state of disrepair. This means it is possible to maximise gearing when remortgaging the property against the value once the works are completed.
- Auction Purchases: This type of bridging finance allows quick access to finance to allow the client to buy at auction. It is good practice to have a lender valuation carried out prior to the auction so that completion can take place within the 28-day window following a successful auction bid.
- Professional Finance: This provides access to quick funds for professional applicants such as doctors, dentists, solicitors, accountants etc. This is a mortgage option for specified professionals who might have short-term cash flow issues or need a quick purchase option.
- Credit/Debt Consolidation: Many mainstream mortgage lenders no longer like remortgaging help and debt consolidation is the reason for capital raising. This bridging facility allows all required credit to be consolidated under one mortgage meaning minimal credit exposure before re-mortgage
- Inheritance Tax Facility:This will allow clients who need a cash injection to access the estate after having paid any outstanding Inheritance Tax liability. This type of bridge is usually used to legally circumvent the situation where a client needs to pay the Inheritance Tax liability before they can be allowed access to the inherited estate.
Different types of security that an unregulated bridging loan be secured on
- Residential property (houses, flats, bungalows etc)
- Property in a poor condition
- HMOs
- Mixed-use property
- Development land
- Hotels
- Guest Houses
- Shops
- Offices
- Care homes
- Retail units
- Farmland
- Leisure complexes
Why use Golden Trust Capital for bridging finance?
- Market Leading Rates as low as 0.44% per month
- Up to 80% Loan to Value
- Loans from £30k to £100,000,000
- Terms from 1 month up to 60 months
- A large comprehensive panel of bridging lenders
- Dedicated bridging finance team dealing with the enquiry/application
- Access to our unique property appraisal and finance reports
- Great deal with procuration fees for Introducers
- Up to 100% LTV available (subject to additional security).
- Interest can be rolled, retained, serviced or a mixture of these options.
- Lending in England, Scotland, and Wales.
- Poor credit history
- CCJ's, Defaults, Arrears and Bankruptcies