Bridging

Key Features

Mortgage type

A variable rate mortgage has an interest rate that can fluctuate. Lender's have a standard variable rate (SVR) on which they base their variable mortgages. The lender can decide when to increase or decrease this standard rate, usually based on the movement of the Bank of England's base rate.

Interest rates

7.60% variable. Our Standard Variable Rate (SVR), currently 6.60% plus 1.00% for the term of the mortgage

Maximum loan to value

75 %

Fees

Application fee: 0.75% of original advance amount
Booking fee: 0.75% of the original advance amount
Valuation fee applies

Features

No Early Repayment Charge (ERC)

Loan size

£50,000 (min) - £500,000 (max)

Early repayment charge (ERC)

No Early Repayment Charge (ERC) applicable

Eligibility

The maximum term is 1 year.
The property must be located in England or Wales. All properties in the following London postcodes are restricted to 60% loan to value: E, EC, N, NW, SE, SW, W, WC. Flats in the following London postcodes are restricted to 60% loan to value CR, EN HA, IG, KT, RM, SM, TW UB.
Minimum property value of £150,000

Representative example

A mortgage of £320,000 payable over 1 year on our standard variable rate currently 6.60% plus 1.00% giving a current rate of 7.60% for the mortgage term of 1 year would require 12 monthly payments of £2,026.67.

The total amount payable would be £349,820.04 made up of the loan amount plus interest of £24,320.04 a booking fee of £2,400, an application fee of £2,400, a valuation fee of £600 and a MEAF of £100.

The overall cost for comparison is 9.8% APRC representative. Please note this illustration is based on an interest only basis (capital and repayment is also available)

Additional information

WE HAVE NO CURRENT PLANS TO WITHDRAW THIS PRODUCT BUT IT MAY BE WITHDRAWN WITHOUT NOTICE.

YOUR MORTGAGE IS SECURED ON YOUR HOME. THINK CAREFULLY BEFORE SECURING OTHER DEBTS AGAINST YOUR HOME. YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE.

Legal Costs

Legal work is required when buying your home and when switching your mortgage to us from another lender (remortgage). When buying your home the legal work is carried out by a solicitor and is payable by you. We can use the same solicitors as you, providing there is a minimum of Four Approved Managers/Licence Holders and they are registered on The Law Society website (www.lawsociety.org.uk). Licenced conveyancers are also acceptable for residential business only. The conveyancer must be registered with the Council of Licenced Conveyancers and be in a firm with at least four Approved Managers/Licence Holders.

Standard mortgage valuation fee

A valuation of the property and rental income assessment will be required to assess the security offered for the loan. We offer a choice of either a basic mortgage valuation, which is for us to assess security only, or a Home Buyer's Report that will give you a more comprehensive guide to the condition of the property. It is payable in advance and cannot be refunded once the valuation has taken place. If you would like a full building survey, we will give you the names of some local surveyors who you can contact to give precise instructions and negotiate price.
You can upgrade to a Home Buyers report if you wish and if you would prefer a full building survey, we can give you the names of some local surveyors who can organise this for you. (see our Mortgages Explained booklet for valuation and home buyer fees).

Maximum loan to value

Loan to value (LTV) is the proportion of the value or price of the property (whichever is lower) that you borrow on a mortgage. For example, a £150,000 mortgage on a house valued at £200,000 would mean a LTV of 75%.

Fees

The application fee can be added to the mortgage and is refundable if the mortgage does not take place. If you add the application fee to your mortgage, this increases the amount you borrow and will also increase your monthly payments.
The application fee is worked out as a percentage of the total amount of borrowing requested, even if the final amount borrowed from the Society is less than was originally requested.
A Mortgage Exit Administration Fee (MEAF) applies when you repay your mortgage. Please see our Tariff of charges leaflet and your European Standardised Information Sheet (ESIS) for details.
If you lose the property we will not refund but will hold the bridging loan available for you for 3 months and you will not have to pay this portion of the fee again. For example, if you initially ask us to lend £200,000 then the booking fee is £1,500. If you subsequently ask us to increase the bridging loan to £250,000 then you must pay a further booking fee of £375.

Timescales

House purchases must complete within six months of the date of the formal mortgage offer.
Further advances must complete within three months of the date of the further advance offer.
For new build properties the mortgage offer is valid for up to 6 months. The application must be able to complete in the product time scales. Therefore, the new build property must be completed and available for occupation within six months of the mortgage offer.

Other charges

Charges applying to the ongoing administration of your mortgage are detailed in our Tariff of charges PDF, which you will be given before your mortgage completes.