A Bridging Loan is expected to facilitate the replacement of an existing financial obligation or to cover a period before long term finance is provided for a project. Ablrate’s loan range is typically between £200,000 and £800,000 for a loan term of between 6 and 12 months.
What is an Ablrate Bridging Loan?
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What can I borrow on different security (maximum Loan to Value, or LTV’s)?
Each loan offered to a borrower will vary in size dependent on the first charge security on offer for lenders. Unencumbered (i.e where there are no loans outstanding against the property, such as a mortgage) residential property as security will have a maximum 75% LTV on a first charge and 70% on a second charge. Commercial property/mixed use and industrial will have a maximum LTV of 65% on a first charge and 60% on a second charge.
What types of security is required to support a loan?
Ablrate when offer a loan term sheet to a borrower which includes a security suite which we would want to take to support the loan. Primary pieces of security could be first or second ranking charges over Residential, Commercial or Industrial real estate. Secondary security to a loan may include a first ranking debenture over the business or business assets, third party corporate guarantees and personal guarantees.