With a history dating back more than 325 years, Barclays has the kind of pedigree that speaks for itself. Credited with introducing the world to its very first ATM, Barclays is known as a champion of innovation and proactive financial services for private and business customers alike.
Bridging loans are a kind of short-term loan. They’re best thought of as a speedily arranged financing option which helps to solve a temporary cash-flow problem until you can find a more permanent funding solution. That is where the bridge concept comes in – money to help you get from one step to the next.
Rates of interest
Barclays bridging loans are only intended as a temporary product. They’re used to ‘ bridge’ a gap between an urgent financing problem and the main line of credit being available. They can be important in facilitating a property purchase that otherwise would not be possible. However, as you may be aware of with a stop-gap measure such as this, a bridging loan can be more costly compared to a regular loan from a bank. Barclays bridging loans can be used for many different funding purposes, which may be quite complex in nature. Whilst most banks have set guidelines when examining applications for loans, bridging loan providers have a more flexible approach.
The Appeal of the Bridging Loan
The uptake of bridging loans has grown in recent years, with the large banks and the likes of HSBC, Yorkshire Bank and Santander becoming slower and far more reluctant to lend on mortgages and sales becoming a more protracted process. With the introduction of the Mortgage Market Review rules some years ago, mortgage applications have begun to take longer than ever to be approved, whereas bridging loans can be approved in a matter of days with the funds being released just as quickly.
Our Online Bridging Loan Calculator
Bridging finance calculators are intended to offer a rough overview of how much a short-term finance facility costs. There are numerous loan providers currently operating in the sector, with each one offering different fees. As independent brokers, we always provide the most competitive products in line with the needs of each client.
Bridging Loan Calculator Explained
Bridging finance calculators are quite similar to a mortgage calculator. However, as opposed to calculating month-to-month payment figures, bridging finance calculators supply information regarding the lenders’ facility fee and the interest charged every month. It is important to keep in mind that the interest figure is the interest amount charged, and does not include any capital repayment. The interest charges on bridging finance can be arranged so that they are either added to the loan sum or paid when the loan is redeemed or paid every month. Contact us and we will find you the best deals. We are happy to provide quotes that detail the interest charged plus all other costs and we will automatically compare the most competitive bridging options from a broad spectrum of providers on your behalf.
Applying for Bridging Finance
Any limited company or individual or trust can make an application for a bridging loan online. Usually, the online application for bridging finance is usually easy to fill out with a fast turnaround. They can be used for just about any purpose, as long as the reason is acceptable to the provider and the debtor is above eighteen. A bridging loan requires a property (including commercial property, flats, residential, investment property and houses) or a similar asset as security. Ultimately, bridging loans are secured loans, which means that the bridging loan lender takes first or second charge over the property, land or asset being financed. If the debtor is a business, the loan provider may require further business guarantees.
Without the ownership of an asset, a bridging loan application will not be approved. The major concern for online bridging lenders is how and when the loan will be paid back. All lenders will want to be certain that if they lend money, it will be repaid as promised by the borrower. The security will be used to work out the LTV of a bridging loan, which works in a similar fashion to a mortgage provided by a high street bank. It shows the size of the loan in comparison with how much the property is valued at. Therefore this means that the overall loan needs to fit within the LTV.
A commercial loan is a short-term, although it may be renewable once it matures. A commercial loan is used to finance capital needs; that is, needs for operations and other aspects of a business. These loans can be borrowed from a bank or a credit union. The assets of the business tend to be used as security for the loan. In order to be approved for a commercial loan, the business needs to be seen as a good credit risk. A commercial loan officer is usually employed to scrutinize different tax and financial statements plus your business plan before approval is granted.
With Help to Buy Equity Loans, the government gives you up to 20% of how much your newly built home is valued at, so you only need to put down a 5% deposit before applying for a 75% mortgage. You will not be charged fees on the 20% provided by the government for the first 5 years of buying your house.
How They Work
The Interest Rate You Will Be Charged
You will not pay any charges or interest on the loan for the first 5 years. In the 6th year, you will be charged 1.75%. After that, the fee rises by inflation based on the Retail Prices Index plus 1% each year. Retail Prices Index figures are created by the ONS (Office for National Statistics).
Homeowner loans are debts that are secured against your property and, as such, these loans are only available to homeowners with the required equity. These products could also be called secured loans, although technically the latter could be secured against another asset, such as a car. It is likely you will need a good credit rating to get one of these loans. It is common practice for a homeowner loan to be used by those wanting to borrow bigger sums than those seeking unsecured finance – perhaps between £5,000 and £250,000 – and for the loan to be taken out over a considerably longer period.
These are bank loans to fund training that help with your profession or help you get a job. Career and professional development loans are typically offered at reduced rates of interest and the government pays this interest while you’re studying.
To apply, you must be:
Professional and Career Development Loans cannot be used for a first full-time degree however you are able to apply for a student loan.
Qualifying courses must:
Interest and Repayments
Professional and Career Development Loans are bank loans that must be paid back.
You start repaying the loan a month after your course has been completed. The government pays all or most of the interest whilst are studying and then for a full month after you have finished your chosen course. It is then your responsibility to repay the debt.
Commercial mortgages are used to buy business premises or to buy an existing business. Typically, commercial mortgage providers need a down payment of 25% to40% of the total value of the loan and mortgage terms can run from twelve months to forty years. A commercial mortgage is approved with your company’s ability to meet the payments as the primary concern.
You will find that commercial mortgage lenders will analyse your finances before deciding on what kind of interest rate they will offer you. Normally, they will look at your current financial position, past performance and long-term future strategies.
The interest you’ll be quoted will ultimately be based on these factors and may be higher if the underwriter identifies higher risk in the proposal. You may also need to provide a detailed business plan which demonstrates that you can realistically make the repayments on time as agreed. When applying for a commercial mortgage from Barclays, or any other high street provider, a professional valuation will also be required.
Barclays Loan Calculator
An online mortgage calculator offers a convenient means of finding out how big a mortgage you’ll be able to apply for and how much it will cost you. These calculators can be used for all manner of mortgage products including Barclays buy to let mortgages and various home mortgages from a vast list of lenders.
There are lots of loan calculators to use that will aid you in finding the most suitable product based on your needs. A loan calculator can be used to determine the cost of the following products:
You should always keep in mind that an online loan calculator is only designed to give you an approximation of your eligibility for a loan and the involved costs. Loan calculators can’t guarantee you will be approved for a loan.
To be able to take out a buy to let mortgage from Barclays, you have to meet certain criteria. You must be at least 21 years old and all joint applicants have to be 18 or older. Up to four people can apply together as long as you are not working as a part of a company. Each property can have up to £2 million borrowed against it with £3 million in total loans from Barclays and £4.5 million across total lenders. Borrowers can have up to six rental properties with mortgages through Barclays and ten total from all lenders.
Deciding How Much to Borrow
Using a buy to let mortgage calculator, you can decide how much you are going to be able to borrow when you are deciding on a new purchase. Bear in mind that the rent will need to cover not only the amount that you owe Barclays but also other expenses associated with being a landlord, including tax law changes, rising interest rates, and maintenance that needs to be performed.
If you have a buy to let property with another lender and are not happy with your terms or rates, then it is easy to move the mortgage to Barclays. Compare rates online to see if you will be enjoying a better deal.
While many of the financial products and services provided by Barclays can be applied for online, others require in-person meetings or telephone consultations. In any case, we can help you pinpoint and apply for the perfect product for your needs. Give a member of our customer support team a call today, or send us an email with an outline of your loan requirements.