What is the best briding finance loan to value %?
Should lenders in the bridging finance sector offer higher loan to value (LTV) funding?
According to one of our major lenders in recent research, the average bridging loan is actually now 45% for the last quarter of 2017, down from just under 50% in the previous quarter.
Whilst this might appear surprising to many customers out there, it is indicative of the competition in the bridging finance market and the exceptional rates being offered for lower loan to value cases. In many cases the rate can be well below 0.5% per month, thus bridging rates are almost overlapping some of the term finance rates out there.
Lower interest rates limit the deductions from the advance and thus lower overall loan to value loans are still helping the investor or developer to grow their property business.
Clients always looking for the highest possible loans to value deals are, unfortunately in a less competitive part of the market and thus, potentially do not have the same access to these very low-interest rates. The deductions for fees and interest from these higher LTV bridging loans can mean that accepting a lower loan to value from a more competitive lender can result in the same drawdown from the bridging lender but a significantly lower overall repayment.
This can be especially important for development or refurbishment cases where a small time over-run could push the lending beyond the lenders limits and into penalty payments.
Of course there are many exceptions to these limits, especially in development and conversion funding where the value added to the project can be significant and lending of 90% or 100% is possible.
For your next property project talk to award-winning Acorn.finance – with more than 20 years experience funding business and property professionals we’ll help you find the best bridging lender for your needs.
Our experience of 20 years making purchases happen
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Don’t just take our word for it
acorn.finance is an award winning finance broker, here are a few testimonials from our clients;
UK Commercial Mortgage Broker of the Year – 2016, 2015 & 2014. (M&I International)
Commercial Mortgage Broker of the Year – 2013 (Business Moneyfacts)
Shortlisted – Commercial Mortgage Broker of the Year – 2014 & 2015 (Business Moneyfacts)
Acorn Commercial Finance (Acorn.finance) is authorised and regulated by the Financial Conduct Authority (FCA) – #660207
We are also full members of the National Association of Commercial Finance Brokers.
Although most of the commercial mortgages, business loans, buy to let mortgages, bridging finance and property development loans acorn.finance arrange are not regulated by the Financial Conduct Authority we take our responsibilities as a professional broker very seriously and apply the highest standards of customer service and advice to every case, regulated or not.
As members of the NACFB since 1997, our ethos has always been to adhere to their Code of Practice in every aspect of our business.
The NACFB has operated an industry recognised Code of Practice since 1992 which endorses best practice in the industry. All NACFB brokers agree to abide by the Code of Practice which ensures that you have the guarantee that Acorn.finance will always operate professionally and in your best interest.
Founded in 1997 by father and son team Tom and Paul Thompson, Acorn Finance have long been one of the leading finance brokers in the small business and property sectors.
We’re a multi-award winning team with 7 “best UK broker” awards in the last 6 years and have been featured on the BBC Inside Out programme to show best practice in the commercial lending sector.
Acorn’s specialist knowledge of small businesses marked us out as the “go to” broker for any trading business but especially those in the hospitality sector which resulted in Acorn Commercial Finance becoming the only finance provider asked to join the BIIAB (British Institute of Innkeeping Advisory Board).
We work harder to find the funding you need to thrive
Acorn.Finance (Acorn Commercial Finance previously) have been funding commercial and investment property since 1997.
As a small business just like you, the Acorn.finance team understands the needs and time pressures of the buy to let property investor, developer or business owner.
Our mission is to give every business owner, property investor or developer access to the finance they need to thrive and grow. In a broad and fragmented market with more lending sources than ever, it is no longer an option to rely on the products of just one lender for the life of a business, lenders are many and varied. Our role is to help you find the very best funding package to fill your needs, and to have the funding available to you, just when you need it. To do that we work across the whole of the finance market, from the high street banks and challenger banks through to crowdfunding providers (including our own) and sometimes private equity and businesses angel investors.
Whether you are growing your business or investment portfolio or just starting out then finance is of vital importance and getting the best deal can easily be the difference between growing or not or even failure. Our experts take time to understand your needs and aims in both the long and short term before recommending you a product which we believe is the best one to achieve your aims. By taking that time to understand your needs we also work more closely with our lenders than most brokers, that means we have a market leading level of success with more applications going through to a successful completion and more of our clients go on to long-term success.
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344-354 Gray’s Inn Road
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Almondsbury Business Park
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