Founded in Birmingham in 1765, Lloyds Bank is a British retail and commercial bank with more than 45,000 employees and 22 million current account customers. The Lloyds Banking Group Retail is the UK’s largest provider of its kind an is continually diversifying its portfolio with dynamic, flexible and innovative new financial services for businesses and private customers alike.
Bridging loans are short-term loans mainly used for property transactions. They’re designed to cover a temporary gap in an individual’s finances. Generally, they’re taken out for two to three months. In a situation where somebody purchasing a house has to make a down payment on a brand-new mortgage before they’ve sold their existing property, Lloyds bank bridging finance could help.
What Are the Interest Rates?
Given the specialist nature of bridging finance, the interest is higher compared with loans provided by traditional high street banks such as Halifax, Lloyds and NatWest. You sometimes can have interest payments ‘rolled up’, which means you will not pay every month but pay a lump sum at the end of the agreed term instead. This makes it useful for those without the required funds at the start of the loan.
How to Apply for Bridging Finance
Any trust, individual, or limited company can get a Lloyds bridging loan online. The online application for a bridging loan tends to be fast and easy to fill out. A bridging loan can be used for nearly any requirement, as long as the borrower is 18 or over and the reason is accepted first. Bridging loans require some kind of an asset, such as land or property as security.
Bridging loans are a secured loan type, which means the loan provider takes second or first charge over the property, asset or land being financed. If the debtor is a business, the loan provider might ask for further guarantees. The concept is that giving security for the bridging loan provider ensures the loan is able to be paid back. Without the ownership of an asset, a bridging loan cannot be approved.
The major concern for online bridging loan lenders is when and how the loan will be paid back. Any lender will want to be certain that if they lend funds, they’ll be settled as assured by the debtor. The security will be used to work out the loan to value of a bridging loan, which works in a similar way to a mortgage provided by one of the large high street banks. This shows the size of the loan in comparison with the value of the property. This, therefore, means that the total loan must fit within the loan to value.
Bridging Loan Calculator
A bridging loan calculator is designed to offer a rough overview of the expenses associated with obtaining a short-term finance facility. However, there are numerous loan providers, all of whom calculate their interest in different ways, offer different rates of interest and have different fees. As an independent broker, we offer the finance that provides the best possible deal for you.
Bridging Finance Calculator Explained
A bridging loan calculator is similar to a mortgage calculator, but rather than calculating regular monthly repayment figures, a bridge finance calculator supplies information about the interest charged every month and the lenders’ facility fee. It is very important to keep in mind that the interest figure is the interest amount charged, and does not include any capital repayment.
Bridging finance interest charges can be arranged so they are either added to the loan and paid when the loan is redeemed, or paid monthly. Please contact us to find the best deal. We are happy to supply quotes that detail the interest charged and all other costs.
A commercial loan is a loan borrowed by a company to pay for financial needs. Commercial loans are short-term and may be renewable once matured. A commercial loan is used to fund capital needs; that is, needs for operations and other activities of the company. A commercial loan can be obtained from a credit union or bank. Generally, the assets of the business are used to secure the loan. To qualify for a commercial loan, the business must be seen as a good credit risk. Commercial loan officers scrutinise different tax and financial statements, plus a business plan, to determine how good a credit risk the business is.
Help to Buy is a government funded scheme that can help first-time buyers buy a property with a 5% down payment.
Help to Buy Explained
There are two ways you can benefit from the Help to Buy scheme:
Lloyds homeowner loans are only available to those that already have a mortgage. Sometimes this type of borrowing is referred to as a secured loan since the loan is secured, which could be repossessed should repayments not be made. This decreases the loan provider’s risk, which could result in preferential rates of interest. However, this presents a significant risk to the borrower who could have their property repossessed if payments have defaulted.
How Much Can I Apply to Borrow?
The amount you can depends on the lender, but homeowner loans are usually up £250,000. Homeowner loan lenders feel more confident giving loans to people who are prepared to secure the credit.
How Quickly Do I Have to Settle My Homeowner Loan?
Due to a large amount of credit associated with a homeowner loan, its repayment can be spread up to three decades. The terms often mean that borrowers can take advantage of low-interest rates. However, remember more interest will be paid if longer terms are required.
Can a Homeowner Loan Be Settled Early?
You’ll have the opportunity to settle a homeowner loan early, but doing so could incur a charge for early settlement, which is added to the balance at the time that a settlement figure is requested.
These are bank loans to pay for training that help with your career or help you get into work. You might be able to borrow between £300 and £10,000. These loans typically are offered at a reduced interest rate and the government pays the interest on the loan whilst you’re studying. Who is able to apply? In order for you to apply you need to:
Which courses qualify?
Courses have to:
You cannot get Professional and Career Development Loans for first full-time degrees but you’re able to apply for student finance.
Interest and Repayments
Professional and Career Development Loans are bank loans that have to be paid back. You start repaying the loan, along with interest, 1 month after leaving your course. The government pays the interest whilst you are studying and for a month after you have left your course. Then you begin paying back the loan yourself.
Commercial mortgages are used to purchase a business or to purchase business premises. Generally, lenders ask for a down payment of 25% to 40% of the total value and mortgage terms can run for one year, or up to forty years in total.
Obtaining a commercial mortgage is based on the ability of your business to make the payments. You’ll find that commercial mortgage lenders will examine your company before they quote you an interest rate. They normally look at long-term future plans, the current position and past performance. The interest rate you’re offered may be based on these variables and might be higher if the underwriter recognises higher risk in the proposal. You might have to give a thorough business plan demonstrating you’re able to make payments every month, and a professional valuation is usually required.
Before you get a mortgage, you can use an online mortgage calculator to get an idea of how much you will be able to borrow and how much your repayments are going to be. This applies to every kind of mortgage such as buy to let mortgages.
To apply for a buy to let mortgage there are a few criteria that you have to meet in order to be eligible. You need to be between 25 and 74 (at the end of the term), you cannot be a first time buyer, and you must already own a piece of property located in the UK. Additionally, you need to have a minimum of 25% of the property price as a deposit, you will be using the property for a rental, and the property has to be in good condition and meet the minimum required value.
Knowing How Much You Can Borrow
Lloyds TSB makes it easy to find out how much you can borrow for a buy to let mortgage. You can have up to three mortgages, or £2 million from the Lloyds Banking Group. Also consider that the maximum amount on a single loan is £1 million and that your personal income, notional rate, and LTV will all come into play.
More Things to Remember
Your buy to let mortgage won’t be regulated and you have to make your own choice on your mortgage. You need to understand the costs, including the purchase costs, taxation you will pay, and the costs of running your rental.
While many of the financial products and services provided by Lloyds Bank 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.