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.
What Are the Interest Rates?
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.
How to Apply for a Bridging Loan
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.
Bridging Finance Calculator
We have designed our bridging loan calculator to be as user-friendly as possible. This useful tool will help you to:
Commercial finance is another term for business finance – a type of lending designed for commercial enterprises. Commercial finance tends to be talked about in contrast to personal finance.
There are many types of commercial finance. In the beginning, commercial loans primarily came from banks. However, these days there’s a range of alternative finance available. The simplest form of commercial finance is a commercial loan. You agree on an amount, the cost of finance and a repayment period.
Commercial loans can be secured or unsecured. A secured loan tends to be more affordable because the loan provider is taking a lower risk, but you need to have assets to use as security.
Unsecured loans are useful for companies that do not have enough assets to get a secured loan. Commercial loans can come from a variety of sources. They are offered by challenger banks, specialist independent lenders, and the mainstream high street banks, as well as peer-to-peer lending platforms.
There is a range of loan calculators on the Internet which have been created to assist you in finding the most appropriate loan based on your own specific needs. A loan calculator can be used to determine the cost of any of the following loans:
You should always bear in mind that an online loan calculator will only give you a basic approximation of your eligibility for a loan and the costs. Loan calculators never guarantee you are going to be accepted for a particular loan.
A Help to Buy loan is designed to help first-time buyers get on the property ladder or buy a new home without a large down payment.
Help to Buy Explained
The Help to Buy scheme has three key components: Help to Buy ISAs, Help to Buy equity loans and London Help to Buy.
Do I Qualify for the Help To Buy Scheme?
To qualify for the Help to Buy scheme, you are required to:
Help to Buy Equity Loans Explained
Help to Buy equity loans are amongst the most popular paths onto the property ladder and these are available to those who wish to purchase a new-build home.
Help to Buy equity loans work in the following way:
A homeowner loan is only offered to people that have a mortgage. This type of borrowing is often referred to as a secured loan since the debt is secured. With a homeowner loan, your property may be repossessed if repayments are defaulted on. This reduces the risk to the lender, which results in preferential interest rates, although this presents a significant risk to the borrower.
How Much Can I Borrow?
The amount you can borrow can vary between lenders, however, most homeowner loans tend to be worth anywhere from £25k to £250,000. Secured loan providers feel much more confident in approving loans to those who are prepared to offer security.
How Long Do I Have to Repay My Homeowner Loan?
Because of the large amount of credit associated with a homeowner loan, repayments can be spread from 10 to 25 years. These terms can mean that borrowers often benefit from low-interest rates, although be mindful that more interest will be paid overall where longer terms are requested.
Can a Homeowner Loan Be Repaid Early?
The opportunity to pay back a homeowner loan early is often available to the borrower, but doing so might incur an early settlement charge. This will be added to the balance when a settlement figure has been requested.
RBS Professional and career development loans are bank loans that are used to pay for courses that help with your career or help get you into work. In general, these loans tend to be offered at reduced rates of interest and the government pays the interest whilst you are undertaking your chosen educational course.
You may be eligible to apply if you meet the following criteria:
For the course itself to qualify, the following must be true:
Professional and Career Development Loans cannot be used for a first full-time degree. You may, however, apply for student finance if this is the case.
Repayments and Rates of Interest
Professional and Career Development Loans are bank loans that have to be paid back. You begin paying off a professional and career development loan, plus interest, a month after your course has finished. The government pays interest while you study and for the first month after you leave your course. After this time, you start repaying the loan.
Business mortgages, also called commercial mortgages for owner-occupiers, are available to companies or individuals purchasing or re-mortgaging a property to be used as business premises. A business mortgage is also available for mixed-use properties.
Broadly speaking, commercial mortgages can be used for three main purposes:
Owner-occupied: Commercial mortgages for owner-occupiers normally are for two business situations: either a business is planning on acquiring the property where they’re operating from, or planning on buying brand-new premises to move into.
Residential buy-to-let: A common scenario for commercial mortgages is the acquisition of residential property to be let out. This is typically used by landlords, in addition to buy-to-let limited companies set up for the exact same purpose.
Commercial buy-to-let: Much like the above, you could use a commercial mortgage for commercial buy-to-lets as well. As an example, you may want to buy a storage facility for your business and let it out. Although this mortgage resembles residential buy-to-let, the loan provider will take a look at different factors since, in general, it is harder to rent commercial property.
A mortgage calculator is a great way to find out the size of mortgage you are eligible to apply for and how much your monthly payments and interest charges are going to be. A mortgage calculator can be used for any kind of mortgage including buy to let mortgages and home mortgages.
Before getting started, you need to make sure that you are eligible for a buy to let mortgage from RBS. There are a number of criteria that you need to meet, including making more than £25,000 in income each year, being between 18-70 years old, and having at least 25% for the deposit. Additionally, there is a minimum amount for these mortgages of £25,000 over three years, and you have to make sure that the property you are going to mortgage is worth at least £50,000. You are limited by how many buy to let properties you already own and how much you have borrowed.
Applying for Your New Mortgage
RBS makes it really easy for you to apply for your new buy to let mortgage. You can easily complete the application process over the phone or come in for an appointment if you want one on one help. Otherwise, you can do all of the work online, secure an agreement in principle, and go over all of the costs before submitting your application. Getting an appointment for your application is easy and with so many different branches available, you’ll be able to find someone to help you with this process.
While many of the financial products and services provided by RBS 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.