RBS PRIVATE BANKING
What is Bridging Finance?
Bridging Finance can be a valuable short-term tool in many property transactions; literally bridging the gap between a borrower purchasing somewhere to live before their existing property is sold. It provides flexibility enabling clients to act quickly and avoid losing out on the house of their dreams or having to break the property chain. Also it can be a particularly useful and affordable way of keeping an existing home on while work is done getting a new one ready for moving in.
There are two types of bridging loan, open and closed. Closed bridging covers a set period of time and, at the end of this, the loan is repaid; this is useful if the completion date for the old property is set. Open bridging is just that – it has no end time.
Why choose RBS?
- Personal and professional service from your Private Banking Development Manager:
- A dedicated Development Manager to guide you through the process and feedback on all your cases.
- Meetings wherever is most convenient for you – in a Branch, at your work or home or, if you prefer, they can even deal directly with your clients.
- Easily contactable via the Branch, by mobile or email, no need to go through a lengthy call centre process.
- Same day decision – some clients may not have the luxury of time, our dedicated Private Banking underwriters can give you a quick decision once they’ve received the application and any supporting documentation.
- Normally a closed bridging application can be fully completed within 1 week and an open bridging one within 3 weeks*. Where necessary, cases can be fast tracked.
- The security of a High Street bank name backed by a great reputation for customer service.
- Growth opportunity for your business, secure long term client relationships.
- Enhance your fee income.
- Customers are not tied into taking an RBS mortgage after the bridging finance.
- No redemption penalties.
- No valuation.
Our rates and fees
Our arrangement fee is split with the introducer at the time of drawdown we offer amongst the most competitive, negotiable rates in the market place. Interest is base rate linked and calculated daily.
How much will we lend?
- Open bridging – normally a maximum of 75% LTV of property for sale.
- Closed bridging – up to 100% LTV of property for sale.
- We’ll assess every case on its own merits. Flexibility on LTV dependent on serviceability, background, income and security.
Documentation we’ll need
- Fully completed application form.
- Valid passport for each applicant.
- 3 months’ personal bank statements and 3 months’ salary slips if personal account not held with the RBS Group. 6 months’ business bank statements or 2 years’ audited accounts if self-employed.
- Mortgage redemption statement.
- Evidence of buildings insurance.
- Estate agents’ particulars for both properties and, if it’s an open bridging application, their views on saleability (amount and timescale).
- Solicitor’s confirmation that missives have been concluded/contracts exchanged –closed bridging applications only.
To find out more about our quick and competitive bridging finance please contact Doug Barber on 07770 502879
For an open ended bridging loan, RBS will require to take a First Standard Security/Legal Charge over the property, if not already held.
* These timescales are indicative and are subject to full compliance with FSA legislation.
Each application judged on its own merits.