Property Finance Solutions
Fueling growth through property bridging loans.
Fueling growth through property bridging loans.
Buzz Capital provide affordable property business loans to those looking to achieve growth in the property development sector. Our skilled team offers property finance expertise that helps your projects reach their full potential.
It is simple and straightforward to apply for a Buzz Capital property loan. In the first instance email us your requirements. We will respond within 24 hours with terms and any further information we require.
Property developer sees an individual property that they want to refurbish and sell at a higher price.
Rather than go through a long mortgage process, they can borrow up to a million pounds, receive the money in around 2 weeks and complete very quickly.
After development the properties can be remortgaged or sold to repay the loan.
You may have an existing first charge mortgage and any equity leftover can be used as security we can lend against. (second charge). Our loan can then be used for an investment opportunity for purchase or refurbishment .
Buzz Capital can lend against many types of land and property, including residential, commercial and development land.
You can call our team on 01273 766399, send us an email at David@buzzcapital.co.uk or use the form below. One of the Buzz Team will be in touch within 24 hours to discuss your requirements and tell you how much you could borrow, how much this borrowing may cost you and how quickly Buzz Capital can arrange your loan.
What is a bridging loan?
A property bridging loan is typically used to cover shortfalls in funding or finances and it is “secured” against a property. Basically, like a short-term mortgage but always for business purposes. Bridging loans may be used to complete on a property within a tight deadline, typically used by property owners, investors and developers.
What are the advantages of a bridging loan?
Bridging loans may be used by people who are looking to avoid property chains and the lengthy application process of getting a mortgage. Rather than wait many weeks or months for a traditional high street mortgage to go through, customers can apply for a bridging loan and receive the money in one lump sum in as little as 2 weeks.
How long does a bridging loan last?
A bridging loan is a type of short-term finance typically lasts from 3 to 24 months.
Who is the typical customer for a bridging loan?
Bridging loans are ideal for potential buyers, developers & investors who need a quick turnaround.
What are bridging loans suitable for?
Common uses include raising money for a business, investment opportunity, property refurbishment or improvement. In addition, when buying a property at auction, you may only have 28 days to come up with the purchase price so getting the finance you need through a bridging loan can be more time-efficient than a high street mortgage application.
Are you an FCA regulated lender?
No, Buzz Capital is not currently regulated by the FCA. Buzz Capital only offers non-regulated loans which are for business purposes.
Is your bridging loan always secured?
Yes, our bridging loans are typically secured on the property you are trying to raise money for and/or where equity has been released. The borrowing facility is based on the potential value of the property and any other available security and whether we can recover our loan and interest in the event of default.
What is the average cost of a bridging loan?
With rates starting as low as 0.99% per month, a £100,000 bridging loan would cost £999 per month in interest and £11,988 over 12 months. So, the total repayable for a 12 month would be £111,988 being the loan and interest.
Other fees not included are the arrangement fee (2%+) and any solicitor and valuation fees we incur with your approval.
How fast is a bridging loan transferred?
On average, the Buzz are able to send the entire funds to your bank account in one lump sum in 10 to 14 days after the loan has been approved. There is usually an average of 3 to 4 weeks from the start of the application to completing and receiving the funds.
Can you apply for a bridging loan with bad credit?
Yes, all credit is considered. We are also a “non-status lender”, meaning that we do assess the potential and value of the property or business in question when deciding your eligibility.
What is a First Charge mortgage?
A first charge mortgage refers to the first secured loan against your property and it takes first priority when you make monthly repayments or following a repossession.
What is a second charge mortgage?
A second charge mortgage is the second mortgage you have taken out against the same property, and is, therefore, the second priority when it comes to monthly repayments or following a repossession.
What is the difference between a first and second charge mortgage?
Whether your loan is a first charge or second charge will make a difference in the amount you wish to borrow. As the first mortgage takes priority, a second charge lender will tend to offer less if it is your second mortgage; because in order to recover its funds, it will be second in the repayment order.
What repayment options are available for bridging loans?
There are several repayment options that we can discuss with you to suit your specific circumstances. This includes paying standard monthly repayments, rolling over all the interest until the end of the loan term or even deducting all or some of the interest (although this will mean borrowing less) from the initial advance.
What is meant by a “non-status lender”?
A non-status lender means that we do not always consider credit scores during the application and approval process, rather also looking at the value of your property as a deciding factor. Non-status providers are generally not regulated by the Financial Conduct Authority but are still fully licensed to operate in the United Kingdom.
How long is the loan term for a bridging loan?
The duration of your loan can vary, with a minimum of 3 months and typically up to 12 months, although we do consider applications up to 24 months. We will always give you the option to repay your loan early, however we may, with your agreement, charge you a minimum amount of interest.
What is the typical loan-to-value (LTV)?
Our typical maximum loan to value is 75%. Your LTV will depend on affordability, credit and above all, the amount you need to borrow.
How much can I borrow for a bridging loan?
We are able to consider loan applications ranging from £50,000 to £2 million, although our typical lend is between £250,000 and £750,000. The amount you can afford to borrow will depend on several factors such as the property or business in question and its potential value. Other considerations include income, affordability, credit and other security available.
Who is a typical borrower for a bridging loan?
The type of borrowers that apply vary and range from property developers looking to renovate, refurbish, develop or buy new properties to business owners looking to improve their business. The one commonality in all of our loans is that the borrowers own a property that we feel comfortable to hold as security until our loan is repaid.
What do we lend against?
We lend against UK property and land. The majority of our deals are over residential properties. We will consider securing over the semi-commercial and commercial securities if the loan to value and available security fits our criteria.
Closed vs. Open Bridging Loans – What’s the difference and which do you loan against?
There is one key element to a bridging loan which decides whether it is closed or open and that is whether or not the borrower has a clear, planned exit to repay the loan. If there is an exit strategy then it is a closed bridging loan and, if not, then it will be an open bridging loan. Buzz only offer closed bridging loans.
Do I need an exit strategy for repayment of my bridging loan?
Yes, having a clear exit strategy is key. Exit strategies are generally things such as the sale of another property, a new or extended mortgage, or a planned payment date for another transaction. If you have evidence for how you will have the funds to pay off the loan then we will give you the rates of a closed bridging loan.
Generally, we will require a very detailed exit plan, typically including a complete-by date, before we will be willing to provide a loan.
If you are looking to increase the cash flow for your property development project, Buzz Capital offers a range of financial solutions. Our property development loans give you fast access to cash to drive your project forwards.
Want to find out more about property development loans, or considering applying for a loan, get in touch today to see how our team can help you.