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  • BRIDGING LOANS


    Bridging loans have been a viable option for people who cannot afford to buy another house because their existing property has not yet been sold. There are several factors you must consider before applying for bridging a loan.

    What are the types of bridging loans available?

    There are two types; the first allows the individual to obtain the bridge with the primary purpose of paying off existing mortgage, and secondly is to provide enough funds to make a down payment for a new property. With this kind of loan, you will only pay the mortgage from your new house. But, once your existing home sells, you will pay back all the interest and balance on the bridging loan at that point.

    How Does The Bridging Loan Work?

    The procedure varies with different lenders, and there are different terms that are offered. One common condition is being given a deadline to repay and settle the advance. Most are expected to repay after a few months, or when their house sells.

    Bridging finance is usually repaid within 6-18 months as the rate of interest can make it too expensive for the borrower. Developers have been using bridging loans to take advantage of market conditions for years. Being able to acquire property almost immediately has many advantages eg: negotiating better prices, timing over your competition as well as complying with auction rules.

    How much can I borrow?

    We lend from £50k to £10m, we see the average application at around £500k with the minimum we lend on agreement would be £25k. This type of finance will always require security, either on commercial, residential or land. We can lend higher loan to values (LTV’s) on residential property, than on commercial or land, but its always worth speaking to us first to get clarification. Subject to your enquiry being within normal working hours, we can usually advise if your loan is accepted over the phone. And receiving your funds takes around 3 days depending on your circumstances.

  • Why use bridging loans?

    Speed – Investors are using bridging loans more often now, as a useful way to accelerate completion of their project. We regularly offer funds to clients within 7 working days, but in urgent cases funds can be issued within 36 hrs.

    Property condition – Many lenders, especially with a buy-to-let mortgage, will often put a full retention on a mortgage if the property is without a kitchen, no bathroom or is in a poor state. We do not operate this retention method, and instead lend on the value of the property in its current form.

    Chain – You may have found the perfect house, but can not sell your current property within a given time frame. In these circumstances, we will provide bridging finance secured against your current property in order for you to transfer your current mortgage to the new property. You then pay the bridging loan once the sale of your current property is complete.

    2nd charge lending – This can be very useful if you have a large amount of equity in your property, and require funds for a short period of time (up to 12 months) and you would favour a 2nd charge loan, rather than a remortgage.

  • Development finance

    We can offer property development funding for extensions, single or multiple house plots, or small office or residential developments, shops, flats, conversions and barn conversions. In fact we will consider most types of development projects.

    When we are content with the development plan, we will then discuss with you how the project is to be handled. In many cases, once the development is started we can finance the costs by stage payments, according to our surveyor's financial assessments of the project on a periodic basis.

    We differ from other lenders, as we can offer personal attention and support at all times, through the funding stage and the development process. This enables the building work to be complete within the specified time. Major bank’s wont generally agree to lend on these small projects, and will only offer lending proposals on completed developments.

    You will be speaking to the decision makers, and will receive swift answers to your questions and a decision regarding your finance. So we have an advantage over High Street banks regarding providing you with a fast decision, and being able to finance projects which bank’s could not.

YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON A MORTGAGE OR ANY OTHER DEBT SECURED ON IT. IF YOU ARE THINKING OF CONSOLIDATING EXISTING BORROWING YOU SHOULD BE AWARE THAT YOU MAY BE EXTENDING THE TERMS OF THE DEBT AND INCREASING THE TOTAL AMOUNT YOU REPAY.

Rates from 9.3% APR, to 32.7% APR are available, our highest rate is for customers with severe credit problems. 16.7% APR is typical (for example purposes only) but subject to status. Calls may be recorded for training purposes. A fee of 0% up to 15% may be charged. The Loans Engine processes all loan applications.

Registered Office: apple loans Ltd, St Johns Road, Tunbridge Wells, Kent, TN4 9PH © 2013 apple loans™ All rights reserved.

Data protection License: ZA026964
CCL licence Number: 650887

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1. My loan is accepted, what do I do now?

Once you receive the paperwork pack, please complete all paperwork and send it back in the prepaid envelope provided. Your loan can be dealt with swiftly if all documentation is completed correctly, and sent promptly.

2. What do I need to send back to you?

You will need to return your signed secured loan agreement documents; these can be found in the loan pack folder sent to you. In the letter accompanying the loan pack, we've listed certain items we need such as your identification and proofs. Please return these with your signed loan documents, as we'll need to verify this information before we release funds.

3. I'm worried about sending original documents; such as my passport etc.

We provide a freepost envelope, which you can use to return your signed loan documents. However If you feel unsure about sending original documentation back in this envelope, please visit your post office and request a Royal Mail Recorded Special Delivery.

4. Who should I ask to be my witness?

Your witness should not be a family member or someone who lives at your address. You should have known them for at least a year. They should also be someone you trust, as they will need to read parts of your loan pack and watch you sign certain documents.

5. How much will my loan cost?

The interest rate you pay on your secured loan reflects your personal circumstances. Any fees that we charge are listed clearly in your loan pack. If you are in any doubt, please contact us to run through all the figures with you.

6. When will I get my money?

This relies on when we receive your signed and completed pack + requested items and proofs. Usually you will receive your funds within 30 days after receiving this information. Funds are either transferred by CHAPS or sent by cheque.

7. Can I repay my secured loan early?

Yes, you can repay your loan early. The method of calculating the repayment can be found in your pack. Early repayment carries a small penalty cost.

8. Can I top up my loan?

Usually this is fine, as long as you haven't borrowed the maximum amount you are eligible for. If you would like to make any changes like this please contact us directly.

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DATA PROTECTION & PRIVACY POLICY

In assessing a secured loan application for credit, enquiries will be made about you including searching records held by Credit Reference Agencies and by checking details with Fraud Prevention Agencies. If you give us false or inaccurate information and we suspect fraud we will record this. The Credit Reference and Fraud Prevention Agencies will keep details of any searches.

Information held about you and by the Credit Reference Agencies may already be linked to records relating to one or more of your financial partners. For the purpose of this application you may be treated as financially linked and your application will be assessed with reference to any 'associated' records.

If you are a joint applicant or you have told us of some other financial association with another person, you must be sure that you are entitled to disclose information about your joint applicant or anyone referred to by you. An association between joint applicants and between you and anyone else you tell us is your financial partner will be created at Credit References Agencies and shall remain until a successful disassociation has been registered with the Credit Reference Agency.

Your consent is required for us to disclose details of the application and how you conduct your account (including any default) to Credit Reference & Fraud Prevention Agencies. This information may be used to help us and other organisations:

(a) assess the financial risks of dealing with you and other members of your household
(b) to help make decisions on motor, household, credit, life and other insurance proposals and insurance claims
(c) to administer agreements & insurance policies with you
(d) to help prevent or detect fraud, prevent money laundering or other claims, recover debts and trace debtors and
(e) for statistical analysis about credit, insurance and fraud.

If you request home insurance we may pass information about you to any organisation approved by us to enable them to arrange and administer the requested plan and for the purposes of underwriting, claims handling and fraud prevention (which could include passing details to other insurers).

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Thanks for contacting us

We will be in touch shortly.

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Application Received !

What Happens Now?

1) An underwriter will call you within 20 mins (within business hours) to run through a loan quotation, please be ready to accept our call.

2) Our advice is to not apply elsewhere until you have spoken to us first; this ensures you don't accumulate credit searches which could impair your credit.


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