Terms can be offered by our Panel of Lenders within 48 hours and the time to completion can be as short as 2 weeks, if everything runs smoothly but it will depend on the complexity of the application and the nature of the assets being offered as security. If there are multiple assets, each will need to be valued before a decision is made, which can take a little longer. Each case is different but at the beginning of the application, borrowers will be advised of all of the requirements before a loan can draw down (valuation, searches or no search insurance, property information forms etc).
A bridging loan can be used for any legal use, but they are mainly used for such things as purchasing and refurbishing commercial property, investment property, mixed-use developments, land, with or without planning, buy-to-let portfolios or the refinancing of existing loans.
If the exact exit date and method is contractually set prior to the loan being awarded, this is known as a closed bridging loan. If you know exactly when you are going to receive long-term funding through a property sale or mortgage approval, this is used as the exit date. These types of loans are considered less risky to the lender and will generally have more competitive rates.
An open bridging loan refers to a loan given when there is no exact date for repayment set. However, the loan period will be set prior to approval, which can usually be up to 6, 12 or 18 months, during which time the loan must be repaid. If the borrower does not know the date they will secure further finance there is obviously more of a risk to both them and the lender.
Proof of income is usually required, but as long as there is a predetermined exit strategy in place and assets act as the security, bridging loans can be considered even if you have no income. Interest is retained in the loan and paid at the end and the arrangement fee typically is deducted from the advance so the loan removes the need of upfront cashflow serviceability. Leveo will consider each case individually and as long as we are satisfied that there is a strong repayment plan, our lender panel will consider applications even if you have a limited income.
A bridging loan is an ideal short-term mortgage solution if you want to buy an investment property quickly.
Bridging loans for renovations or extensions to investment property can be arranged, particularly if you are looking to improve, restore or develop a property in order to sell it on or rent it out.
Yes, you can get a bridging loan to buy an investment property at auction. It is a common method for financing auction property purchases in the first instance, as loans are approved quickly, meaning a buyer will have access to cash fast. Auction properties often need to complete within a month and traditional mortgages will often take much longer than this to arrange, which may limit a buyer’s options. A bridging loan fills the gap, giving time to secure long term finance. This is one of the most efficient uses of a “Bridging Loan”.
A bridging loan term is generally 12 months but as every application is considered on a case-by-case basis, these timeframes can vary, and can be as much as 18 months.
Typically, loans are secured by a first legal charge against property or land in Ireland, but in certain circumstances, we can consider other high-value assets. Our lender Panel have lent against international property assets and against businesses so whilst the majority of our loans are real-estate backed, please do still call with any funding requirements as these will be assessed on their merits.
Leveo can source commercial bridging loans to limited companies and partnerships. We consider every application on a case-by-case basis. If the person applying on behalf of the company has experience within the property industry, this will stand the application in good stead. A large deposit will also assist with the application and in turn help in acquiring the better rates. We understand the structure and our lawyers significant experience with various complex structures including trusts and overseas complex ownership structures.
One of the biggest factors when deciding on a bridging loan over traditional funding options is how fast bridging loans are from application to approval to final funding. Some lenders can provide funds within 48 hours of the initial application.
If you are in a position to pay the bridging loan off early, some Lenders allow you to do so without incurring any early repayment fees or charging interest on the additional months save for the notification period of repayment.
Yes. It is possible to obtain a bridging loan with impaired credit. Each lender will have different lending criteria. The exit strategy is an important consideration; if your credit issues are likely to affect your chances of obtaining long term finance, your application is less likely to be approved. However, if the intention is to sell the property to finance the bridging loan, your application in these circumstances will be considered more favourably.
Up front communication in relation to historic credit issues helps greatly in the underwriting. We understand that not all individual cases are the same, and history can be complex. Historic financial issues will not mean a rejection without first looking holistically at the merits of individual cases. We believe that the past does not have to dictate the future. However, the more information we have up front will enable us to clearly communicate to our Lender panel how they might consider the risk and ensure that any issues can be swiftly dealt with before abortive costs might be incurred.
Most lenders will charge valuation and legal fees before the loan is drawn. Other upfront fees depend on the lender.
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Leveo is a specialist broker that can help you compare bridging loans in Ireland ranging from € 250,000 to €25 million.
Based in the centre of Dublin we aim via our unrivalled service through our Lender Panel to provide you with focused, reliable and secure specialist property finance terms – giving flexible solutions for your needs – at highly competitive rates and costs – and a service you can rely on and trust