The Royal Bank of Scotland (RBS) has a history dating all the way back to 1695, making it Scotland’s oldest bank by a wide margin. Now part of the Lloyds Banking Group, RBS supports millions of private customers, businesses and communities across the UK.
A bridging loan is mainly used for buying property. It is a specific product that is primarily designed to cover a temporary financial gap or shortfall. In the majority of cases, a bridging loan is taken out for a couple of months to a year. Bridging finance is particularly useful in situations where someone who is purchasing a new home needs to make a quick down payment before they have sold an existing property.
Due to the specialist nature of bridging finance, the total amount of interest is typically slightly higher than a traditional loan product. Sometimes you can have the interest payments rolled up, which means you do not pay every month but pay a lump sum at the end of the loan term instead. This is useful for those without the required funding at the early stages of obtaining the loan. As leading brokers, we compare the most competitive products on your behalf to ensure you get the best possible deal.
Almost any limited company, individual, or trust can apply to get bridging finance online. Usually the online application for bridging finance tends to be simple to fill out with a fast turnaround.
Bank of Scotland bridging loans can be used for just about any purpose, so long as the reason is approved first and the borrower is 18 or over. Bridging finance requires a property (including flats & apartments, residential or commercial property, houses and investment properties) or an asset, such as land, as security. Bridging finance is a secured loan type, which means the loan provider takes second or first charge over the land, property or asset being financed. If the borrower is a company, the lender may require further guarantees. Without the ownership of these assets, a bridging loan cannot go ahead.
The major concern for bridging loan lenders is when and how the loan will be repaid. Bridging providers always want to be certain that if they lend money, it will be paid back as guaranteed by the borrower. The security will be used to work out the loan value of a given product, which works in a similar way to a conventional mortgage from a high street bank or building society – such as Santander, NatWest or the Halifax. It shows the size of the loan in comparison to how much the property is worth. The overall loan amount needs to fit within the maximum LTV amount – unless the borrower can provide additional security by means of further assets.
We have designed our bridging loan calculator to be as user-friendly as possible. This useful tool will help you to:
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