Getting A Bridge Loan For A Property In Jersey
What is a bridging loan, and how do they work?
A bridging loan for a property purchase or an investment property is a valuable alternative to traditional finance - it provides greater flexibility, options, and a faster turnaround time.
With fast financing, you won't miss an opportunity no matter what kind of property you are interested in – for example, if you want to buy a new home in Jersey but are waiting on the proceeds from selling your old home in the UK, bridge finance can help you "bridge the gap" and purchase your new place quickly.
What’s the key difference with bridging finance in Jersey?
It is possible to arrange bridging loans for property in Jersey. Still, it is considered a specialised area of property finance - it may be challenging to find UK lenders that will lend for a Jersey property.
Our brokers have access to specialist lenders who deal in bridge loans for Jersey property, and we can source a suitable and affordable bridging loan that meets your needs – helping to avoid the common pitfalls of securing a bridging loan abroad.
What are the advantages of bridging loans?
- Fast finance - the primary advantage of bridging loans is the speed at which they can be delivered - making you a cash buyer in a competitive market will expedite the entire process and lock in a dream property. Loans can be secured from £50,000 to £25 million. Additionally, having the funds to hand can alleviate the stress of relocating – especially when moving abroad to Jersey – allowing for a smooth transition to your new property.
- Flexible in its application – Bridging finance can be applied to multiple scenarios that suit any type of property purchase – residential, commercial, property development or renovations. Providing you have adequate security, the loan can be used to bridge any gap when financing a property.
- “Rolled up” interest – While interest rates are more expensive in bridging finance, you can “roll-up” payments - negating long-term interest on the loan by repaying it earlier.
- LTV (Loan-to-value) - when applying for a bridging loan, the total sum needed depends on the lender’s evaluation of the property. Lenders can offer favourable terms depending on your security. Consequently, giving you the advantage when looking to buy a time-sensitive property in Jersey.
How are bridging loans commonly used in Jersey?
Bridging loans are flexible in their application and are suited to various forms of financing property and projects:
• Investment or commercial use property
• Buying residential property
• Unmortgageable property – development sites, property bought at auction
• Renovations or refurbishment
If you’re looking to purchase residential property, you might be planning to downsize or upsize – a bridging loan will suit both these types of property purchases and will “bridge the gap” between sales and allow you breathing room during a possibly stressful period – especially is relocating abroad.
Additionally, bridging loans allow allocation of funds elsewhere – you could renovate your old property to maximise market value before a sale, for instance.
How much can I borrow, and how much will it cost?
Initially, you can use a bridge loan calculator to get a general idea of the overall cost of a bridging loan. The cost will vary depending on your case and a lender’s criteria. It is always best to seek the aid of a specialist broker when proceeding with bridging finance.
Specifically, in the case of Jersey, there is no currency exchange necessary yet legal fees and the legal process can differ from the UK – potentially inflating the cost of securing a bridging loan without specialist help.
How we can help secure you a bridging loan for a property in Jersey
In need of bridging finance to buy property in Jersey? Our brokers can help. We can provide affordable bridging options from our network of specialist lenders.
What we can offer:
- Residential, commercial and development property finance – for all common uses, and fitting a variety of clients’ needs.
- Flexible finance terms (1 to 36 months)
- FCA regulated and unregulated loans
- “Rolled-up” interest schemes
How we can help:
We can secure bridging finance for any type of borrower – limited companies, individuals (no upper age limit), sole traders, partnerships, and trusts.
- We have access to the entire short-term market – offering the lowest rates.
- We have established relations with a network of both niche and specialist lenders
- And, depending on the complexity of a case, we can secure finance in under a week (5 to 7 days)
