Still the biggest building society in the world, Nationwide is owned by and run for the benefit of its members. Providing an extensive range of services including savings accounts, mortgages, secured loans, insurance, corporate deposit accounts, personal loans, credit cards, insurance products and products offered by subsidiaries of the Society such as The Mortgage Works UK, Nationwide has a loyal following of millions of customers across Great Britain.
A bridging loan is a type of short-term loan. It’s best thought of as a temporary loan which gets you from A to B, until you’re able to secure a more long-term type of finance or clear the loan in full, perhaps using a different borrowing product such as a Nationwide mortgage or homeowner loan. That’s where the “bridge” idea comes in to play – speedily arranged financing option to help you get from one step to the next.
Rate of interest
Nationwide bridging loans are a shorter term financing option. A bridging loan may serve as a temporary borrowing solution in a desperate or time-critical situation. They can be invaluable in helping with a property purchase that would otherwise not be possible. However, as you may be aware of with a stop-gap measure such as this, bridging loans can be a bit more costly compared to a regular loan from a bank or building society such as Nationwide.
Bridging loans can be used for a number of purposes, and can be complex in nature although relatively simple to set up. Whilst most banks have fixed rules when examining applications for a loan, bridging loan providers have a more flexible approach to lending.
The Popularity of Bridging Loans
The popularity of bridging finance has grown enormously over the last few years, with the high street building societies and banks such as Santander, Barclays, HSBC and the Yorkshire Bank becoming more reluctant and slower to approve mortgages. With the introduction of the Mortgage Market Review rules, mortgage applications became a much lengthier and restrictive process, which has led to a rapid growth rate in the number of bridging loans being applied for and approved.
Applying for Bridging Finance Online
Any limited company, trust, or person is able to obtain bridging finance by applying online. Usually, the online application for bridging finance tends to be straightforward, quick and easy to complete. Bridging finance can be used for almost any reason, as long as the debtor is above eighteen years of age and the borrowing purpose is approved by the lender.
A bridging loan requires a property (including residential, commercial property, flats, houses and investment property) or another valid asset, such as land, as security. A bridging loan is a secured a loan, which means that the lender takes first or second charge over the asset, property or land being financed. If the borrower is a company, the lender may ask for further guarantees.
The idea behind this is that by providing security for the lender you are ensuring that the loan can be repaid should unforeseen circumstances should arise. Without the ownership of these assets, a bridging loan application will not be accepted or approved.
The primary concern for online bridging loan lenders is how and when the loan will be paid back. All online loan providers 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 similar to a mortgage from a high street bank. It shows the size of the loan in comparison with the property value. This means that the total loan size offered will be proportionate to the amount of equity provided by the applicant.
Nationwide Bridging Loan Calculator
Bridging loan calculators are intended to give a rough overview of how much a short-term finance facility costs. However, there are a lot of loan providers, all of which offer different interest rates whilst using different fee scales to calculate their interest in their own unique ways. As independent brokers, we’ll always provide the finance deal that offers the best possible value, based on your individual circumstances and requirements.
Bridging Finance Calculator Explained
Bridging loan calculators are like mortgage calculators. However, as opposed to calculating month-to-month payment figures, bridging loan calculators give information regarding the lenders’ facility fee and the monthly interest charged.
It is essential that you remember the interest figure is simply the total interest amount charged, which doesn’t include any capital repayment. Bridging loan interest charges can be set up so they are either paid each month or added to the loan and paid when the loan is redeemed.
Please get in touch with us to find the best deals. We’re happy to supply quotes that detail the rates of interest charged and all other costs.
Borrowers who are looking to purchase a commercial or residential property at auction, but do not have the time to get a mortgage or the working capital needed to make the purchase on their own, will benefit from using auction finance. This type of loan is not only easily obtained by experienced landlords, but it also provides fast financing to users who are looking to buy property at an auction and need to work quickly.
Auction finance provides investors and landlords a wonderful opportunity to add property to their portfolio, even when they have the majority of their capital tied up in other properties. Being able to buy property at an auction is a great way to get a good deal on new property, and using auction finance is generally the best way to do so. This type of funding is fast and will allow borrowers to purchase desired properties quickly.
Commercial loans are a loan used by businesses to assist with their financial needs.
A commercial loan is a short-term, although it may be renewable once it has matured. These loans are used to fund capital needs; that is, needs for operations and other parts of the business. These loans can be obtained from a credit union or bank.
The assets of the business tend to be used to secure the loan. In order to apply for a commercial loan, the business has to be seen as a good credit risk. Commercial loan officers look at different financial and tax statements, plus a business plan, to identify how good a credit risk a business is.
A loan calculator compares loans which can be paid back between 1 and 25 years. The APR you will have to pay will depend on your circumstances, and generally is between 3.2% and 99.9%.
You can compare the cost of various deals by altering the amount you’re looking to borrow or the loan term. You could also enter the budget you have every month and the calculator will tell you how much you’ll be able to borrow and over what period of time. An online loan calculator can be used for all kinds of loans – from business and home loans to unsecured and secured loans.
The majority of people need to get a loan eventually, whether it is to buy something pricey, to do something expensive like extend your home or to pay off debts. If own your own property or have a mortgage, obtaining a loan is usually cheaper and easier, and you could have access to more money than a non-homeowner. This is because owning a property could give you access to funds to pay the loan back if you find yourself unable to meet the costs of repayment via other means.
Homeowner Loans Explained
Secured homeowner loans, to give them their full title, enable you to borrow cash secured against the value of a property. You’ll have to make regular monthly payments throughout the term of the loan, which could last between five and thirty-five years.
An online mortgage calculator is very simple to use. So much so, that within seconds you will know how much the repayments will be. This is based on the interest rate, how much you need to borrow and the overall mortgage term.
Business mortgages are designed for individuals and companies purchasing or re-mortgaging a property to be used as business premises. Business mortgages are also available on mixed-use properties, i.e. part commercial, part residential.
Business Mortgage Types
Commercial mortgages can be used for three purposes:
Owner-occupied – Commercial mortgages for owner-occupiers typically are for two business situations: either a business is planning on buying the property where they operate out of, or it’s planning on buying a brand-new property to relocate to.
Residential buy-to-let. – Another common scenario for commercial mortgages is the purchase of residential property to be let out. This is usually used by landlords, along with buy-to-let limited businesses established for the exact same purpose.
Commercial buy-to-let – Much like residential buy-to-let, you can use commercial mortgages for commercial buy-to-lets as well. As an example, you may want to buy a storage facility via your company and let it out to another business. Although this type of mortgage is like residential buy-to-let, the lender will look at different factors because in general, it’s a lot more difficult to rent out commercial properties.
Check Your Eligibility
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.
The rate that you will pay on your buy to let mortgage will vary depending on a few factors including the loan to value, arrangement fee, and the length of the mortgage. All customers looking for a buy to let mortgage from Nationwide can only obtain financing if they have 10 or fewer buy or let properties mortgaged. The maximum loan to value on buy to let properties increases as the loan amount decreases.
Additional Loan Information
The minimum amount for a buy to let loan through Nationwide is £25,001 and the property has to have a value of at least £50,000 to be considered for this use.
The minimum age for all landlords is 21. First-time landlords and experienced landlords who have a loan to value over 65% can’t be older than 70 at the time of application while experienced landlords who have a loan to value of 65% of less at the time of application have no maximum age limit.
Help to Buy is a government scheme which can help first-time buyers get a property with just a 5% deposit.
Help to Buy Explained
There are two ways you can benefit from the Help to Buy scheme:
A mortgage is an enormous financial commitment, so you have to understand exactly how much it’ll cost you. The most convenient way of doing this is to use a mortgage calculator online which lets you work out what your payments will be, whether you’re a first-time buyer, moving home, re-mortgaging your property or applying for a buy to let mortgage.
Even if you’re an experienced investor or a first-time buyer, an online mortgage calculator can help you find out those all-important figures that will enable you to plan your repayment strategy.
The calculator, also known as an APR or re-mortgage calculator can be used for various mortgages – from buy-to-let to first-time buyer mortgages.
Always be sure that you’re aware that the results on offer are only an indication of how much you’ll need to pay back each month.
While many of the financial products and services provided by Nationwide 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.
Join Millions Receiving Great Advice & Finance Deals Online