The historical market town of Bromley charters back to 1158 and developed principally thanks to its position on the coaching route and then the opening of the railway station in the nineteenth century. Now home to roughly a third of million people, the borough continues to grow and flourish. It is currently undergoing town centre development and is one of the few noteworthy commercial and retail areas outside central London.
For organisations and people in Bromley looking to purchase and develop existing properties or if anyone is interested in subsidising business property projects, Novellus have a range of bridging loan products to help support these ventures.
What Is A Bridging Loan?
A bridging loan is a type of short-term finance that you can access quickly, allowing you to buy property in a shorter time frame than if you apply for a traditional mortgage. This type of finance is secured against a high-end asset, usually property but other assets may be considered.
Source: Bromley BID
The time frame that bridging loans are normally taken out for is from as short a period as one day up to 12 months.
What Can Bridging Loans Be Used For
Buy-to-let – With rental property in demand in Bromley, the popularity of buy-to-let properties is growing. Bridging loans provide a quick funding option for buy-to-let opportunities while long-term finance is being sought.
Auction Purchases – Buying property at auction is a quick process and requires access to funding in a short time frame. Bridging loans allow buyers the opportunity to purchase through auctions while they apply for a traditional mortgage.
Property Investment and Development – This highly sought after London suburb is an ideal property development and investment area. Bridging loans provide a fast solution for property developers looking to invest in Bromley.
Are Bridging Loans Suitable For Anyone?
As long as you have a suitable asset to secure the loan against, a bridging loan is suitable for a large range of people. Property developers looking to make a purchase at auction for the first time, with a need for short-term finance quickly to fund it are common applicants but bridging loans are not limited to these borrowers. Other suitable candidates include commercial property developers working on multi-million-pound projects and business owners looking to invest in buy-to-let.
Businesses and individuals turn to bridging loans rather than more traditional funding streams because they need a quicker decision on their application than high street institutes can provide. It is also generally a more streamlined and straightforward process. For example, as Novellus has no credit committee this means we can reach a decision on your application quicker than most of our competitors.
Novellus offer unregulated bridging loans, ranging from £500,000 to £5,000,000+. Typically our loans are between an LTV of 50 – 70%, but in certain circumstances, we will consider an LTV of up to 90%.
To get an estimate on the costs involved when applying for a bridging loan, take a look at our online bridging loan calculator