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What is a Bridging Loan in Manchester?

In Manchester, a bridging loan serves as a short-term financial solution, usually extending up to 12 or 24 months. Its primary purpose is to “bridge a gap” between various scenarios, such as property sales, refurbishments, or securing a mortgage.

These loans become particularly useful when there’s a pressing need for funds, whether it’s for a swift property purchase, to refinance, or to start a new property investment venture.

Despite typically carrying higher fees and interest rates compared to conventional mortgages, bridging loans offer the advantage of being swiftly arranged and finalised, often within a few weeks.

Bridging loans cater to a diverse range of individuals and entities in Manchester:

Bridging Loan Examples

Here are various scenarios to show the practical uses of bridging loans:

Given the diverse and often intricate nature of these circumstances, individuals seeking bridging loans in Manchester may benefit from personalised mortgage advice.

This advice helps you to navigate through complexities and identify the most financially savvy solutions tailored to their specific needs.

Alternatives

Other options to consider instead of a bridging loan in Manchester are secured loans or traditional mortgages and remortgages, depending on your property plans and the timeline you have for arranging financing.

Seeking impartial mortgage advice in Manchester is key when contemplating a bridging loan application, as there might be alternative products better suited to your circumstances.

Exit Strategy

Having a clear exit strategy from the outset is crucial when dealing with bridging loans. These short-term financial solutions necessitate a long-term plan to ensure a smooth repayment process.

Your strategy for repaying the bridging finance will form part of the application procedure, alongside details of your assets, income, credit score, and affordability.

Here are some examples of bridging loan exit strategies:

How Does a Bridging Loan in Manchester Work?

In Manchester, a bridging loan serves to address short-term financing needs, whether concerning a residential or investment property.

Additionally, bridging loans in Manchester can be utilised even when there is an existing mortgage on the property, provided there is sufficient equity available.

While the specifics of the bridging loan application process may differ among lenders, it typically comprises three key stages, tailored to your individual circumstances and objectives. These stages commonly include:

1. Decision in Principle

A mortgage broker in Manchester will carefully assess your unique circumstances and recommend the most suitable type of bridging finance in Manchester during a free consultation, without any obligation on your part. The ideal loan option for you will be determined by various factors, including:

Following this consultation, a decision in principle will be provided, pending valuation, surveys, and underwriting processes.

2. Application Process 

Once you’ve agreed with the recommendation and are prepared to proceed, your broker will submit a comprehensive application to the lender.

At this stage, the legal procedures will kick in, and associated fees will come into play. Your mortgage broker will provide a breakdown of all fees beforehand, ensuring you understand the process and when payments are due.

A crucial step involves a valuation of the property to confirm its value aligns with your expectations and meets the lender’s criteria regarding type and construction.

During the application process, you’ll need to provide various documents, including:

An underwriting team will meticulously review your application before making a decision.

Working with an experienced bridging loan broker enhances your chances of approval, as they possess extensive knowledge of lending criteria and maintain strong relationships with lenders.

Furthermore, if you haven’t already engaged a lawyer, your broker can recommend one to handle the legal aspects of the process.

3. Completion

If your lender approves your application and you meet their underwriting criteria, along with a satisfactory valuation and legal process, you’ll receive a formal offer of terms.

Upon receiving and signing the offer of terms by both parties, the funds will swiftly be transferred to your nominated bank account.

Typically, the entire process from initial enquiry to completion takes around 2 to 3 weeks. However, when time is of the essence, this timeframe can be expedited.

If you anticipate a future remortgage in Manchester to repay the bridging loan post-refurbishment, your broker can also assist with this if needed.

How Much Does a Bridging Loan Cost in Manchester?

Bridging loans in Manchester may come with higher costs compared to traditional mortgages and secured loans, yet they can offer a cost-effective solution tailored to the right circumstances.

We always advocate for incorporating the expenses of a bridging loan in Manchester into the overall budget for refurbishments, purchases, or capital raises to accurately gauge the return on investment.

The costs associated with a bridging loan in Manchester typically consist of six components:

Arrangement/Facility Fees

Arrangement fees vary depending on the loan amount, typically ranging from 1-2% for loans up to £500,000. These fees are usually included in the loan amount and decrease as the borrowed sum increases.

Valuation Fees

Your bridging loan lender will require an independent valuation of the property to ensure adequate security in case of repossession. This valuation fee, usually a few hundred pounds, is typically paid upfront.

Legal fees for bridging loans in Manchester are generally higher than those for traditional mortgages or secured loans. Additionally, you may need to cover the lender’s legal fees.

Choosing a local solicitor is crucial, as some lenders require face-to-face paperwork review. Our service includes assistance in finding a local solicitor experienced in handling bridging loans, if needed.

Broker Fees

Engaging a broker with expertise in bridging product criteria enhances your chances of approval. It’s essential to work with an independent mortgage broker who can access bridging loans and alternative lending solutions.

This ensures you have the best solution for your needs. Your bridging loan broker in Manchester will also help with refinance or remortgage options when necessary.

Interest

With a bridging loan in Manchester, you’ll typically make monthly interest payments to the lender, with rates generally higher than those for traditional mortgages due to the short-term nature of the lending.

Some customers choose to defer monthly payments, allowing interest to compound and be paid as a lump sum upon loan repayment. Interest rates are influenced by factors such as available equity, existing mortgages, and credit scores.

Exit Fees

Some bridging loan lenders may impose an exit fee upon loan repayment. Our bridging loan mortgage advisors in Manchester ensures you understand all applicable fees and their timing, providing clarity on the true cost of finance before you apply.

Without experienced mortgage advice in Manchester, costs and interest can quickly accumulate, affecting your investment. Relying on a trusted broker saves both time and money.

Government Schemes to Help You on to The Property Ladder in Manchester

Help to Buy was introduced in the 2010’s, off the back of the UK government’ previous FirstBuy Scheme. With a series of pre-existing and new schemes placed under that banner, it was designed to help first time buyers get onto the property ladder.

Over the years we have seen schemes under this banner disappear, whilst others have carried on without that branding. The most popular and well-known of these was the Help to Buy Equity Loan Scheme, which was closed to new applicants towards the end of 2022.

What this means is that first time buyers in Manchester are no longer able to use a Help to Buy in Manchester or anywhere in the UK, though this doesn’t necessarily mean that support for home buyers has ended. There are still a variety of schemes that can help to buy in Manchester!

Shared Ownership

This initiative was launched to permit prospective buyers to apply for a mortgage covering a portion of their dream property’s total cost, with the remaining percentage repaid monthly as rent. Most applicants end up owning between 25-75% of their home under this scheme, but there are exceptions where only 10% goes in their name. The remainder of the property is held by a local housing association, council, or other possible stakeholders.

Under the shared ownership structure, you’re required to make monthly rent payments to your landlord (the provider) as well as mortgage repayments on the percentage of the home you own. Please note, the property will be under leasehold tenancy, which typically entails ground rent and service charges billed monthly. Regardless of the proportion of the property you own, you’re responsible for 100% of these monthly fees.

In the future, you may have an opportunity to buy additional shares, which reduces your rental outlay, a process known as “staircasing”. You’re free to purchase a new property, a shared ownership resale home, or a property tailored to special needs, such as a long-term disability.

Forces Help to Buy

Hot on the heels of the Help to Buy Equity Loan Scheme success in 2014, the government rolled out the Armed Forces Help to Buy Scheme. This scheme, similar in design but with an emphasis on making it easier for UK armed forces personnel to secure property, is an efficient tool for those meeting the defined criteria.

The scheme was set to expire soon, but the government has extended its tenure to December 2022! We’re thrilled at this development, given the scheme’s immense benefits for armed forces personnel securing financing for a house.

Lifetime ISA

While the Lifetime ISA often goes under the radar in discussions surrounding home purchasing assistance, it nonetheless could be a beneficial tool for certain first time buyers in Manchester. Essentially, a Lifetime ISA is a savings account where funds deposited grow tax-free. Moreover, the government boosts your savings by an additional 25%. If you achieve the maximum yearly deposit of £4,000, you stand to receive a handy bonus of £1,000. There are specific requirements to qualify for the Lifetime ISA Scheme.

Book Your Free Mortgage Appointment

With us, you’ll always have a dedicated mortgage advisor in Manchester dedicated to prioritising your needs. Your mortgage advisor will address any concerns or queries you have, ensuring you’re well-informed throughout the process and beyond.

By staying closely involved, we keep you updated on any changes and promptly request any necessary information to advance your mortgage application. Speaking to a mortgage broker in Manchester allows you to stay proactive in the mortgage process.

Our team of trusted mortgage advisors in Manchester are able to help with arranging your mortgage agreement in principle within 24 hours of your initial appointment, which is something you’ll benefit from having when it comes to property negotiations.

Forces Help to Buy Scheme (FHTB) in Manchester Explained

Help to Buy Mortgage Advice in Manchester

Armed Forces Help to Buy Scheme | MoneymanTV

Good news for military personnel, from 1 January 2023, The Forces Help to Buy Scheme has become an enduring policy, ensuring its availability to all service personnel now and in the future. 

Originally introduced back in 2014, this £200 million scheme was intended to offer a boost to anyone from the forces who needed help buying a home.

How does this help to buy work?

People who have served in the military have access to borrow a deposit of up to half their annual salary (a maximum of £25,000), without any interest applied. This can be used to either purchase their first home or to move into a new family home.

The best part is that you don’t need any current savings to get yourself onto the property ladder. Some of the money raised from the loan you’ll receive via the scheme can be used to put towards your deposit or other costs, such as: 

In fantastic news for forces personnel, the majority of lender will accept the loan towards the deposit for a new home. More relaxed than some other schemes, the Forces Help to Buy loan can be paid back over a period of 10 years, so you don’t have to feel as rushed.

Whether you thought you had a chance or not, if you have served your country and can meet the right criteria (length served, service term left and medical categories), you will be eligible to purchase your home using this scheme.

You can find further scheme details on the Government Forces Help to Buy website.

How a Mortgage Advisor in Manchester may be Able to Help

Our experienced mortgage advice team in Manchester has your back from day one. Right from the beginning of your process when you call up, right through until completion and beyond, your dedicated advisor will make sure you are taken care of, ensuring that you end up with the most appropriate result for your individual circumstances.

As a company that prides itself on a fast and friendly customer experience that is stress-free, contact us today and see how we might be able to help you achieve your home owning dreams. 

Please note, the Forces Help to Buy is not the same as the standard UK Help to Buy scheme.

Obtaining a Mortgage as a Newly Qualified Teacher in Manchester (NQT)

Mortgage Advice in Manchester for NQT’s

Congratulations you have recently passed your exams and are now a newly qualified teacher, you have found the perfect teaching position and cannot wait to get started in the classroom. However, it requires you to relocate to Manchester.

You are now in that stressful yet thrilling time where you are searching for a place to move and balancing the struggle of homeownership whilst starting your new role. Rest assured; we can stay in confidence that you are not the only individual to be in this situation.

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Mortgages for NQTs

It can be a challenge to find a lender willing to offer a mortgage to newly qualified teachers, the reasons being having no work history or having temporary contracts. But do not panic despite all this. It is possible to get a mortgage as a newly qualified teacher.

Some Lenders can lend, even some who will offer reasonable and deal with those working in the education sector. However, it is about finding the correct Lender, which can be a daunting task; this is where our Advisors in Manchester can help search thousands of deals to find you the best deals and rates tailored to your circumstances.

What mortgages for NQT teachers are there?

The benefits of using our friendly Mortgage Broker in Manchester. Here are some of the critical things that can be considered:

How We Can Help in Manchester

Our experienced mortgage advisors in Manchester know the Lending criteria inside and out; they have years of experience in helping people with their mortgage situations and try their best. 

To find out your mortgage options as a newly qualified teacher in Manchester, contact us now and our team will take some details from you. Then we will find out what your options are and whether you can get a mortgage suitable to your circumstances.

Why Mortgage Protection Insurance is Essential to Have in Manchester

Insurance Advice in Manchester

Mortgage Protection Insurance is an umbrella term used to explain different kinds of cover available to customers who have taken out a mortgage. This cover got designed to reduce financial concerns for both you and your loved ones, in the event of any unforeseen circumstances that may occur whilst the mortgage process is active.

Here Malcolm has recorded a video to speak to you about the importance of having the correct insurance in place for your situation.

What Insurance is Right for you? | MoneymanTV

The central message here is due to the coronavirus pandemic; the importance of health and getting insurance is now greater than ever. There are differences in insurance to choose from when it comes to safeguarding you and your family.

Here at Manchestermoneyman, we will be able to compare lots of providers to help find you the best policy for your circumstances. The following insurance policies that we can offer to you are:

For further clarification, get in touch and speak with one of our knowledgeable Mortgage and Protection Advisors in Manchester today. Our team will always be at the other end of the phone or email when you need to discuss.

Life Insurance Cover

Life insurance is an insurance policy that reduces the financial impact on your loved ones in the event you or another joint policyholder pass away. Our Mortgage Advisors in Manchester can run through all the different types of Life cover accessible to you and advise the most suitable plan for you.

Critical Illness Cover

Critical illness cover is an insurance policy that covers serious illnesses detailed within a policy. Usually, these will include Stroke, heart attack, certain types and stages of cancer, and more. However, you are unlikely to be covered for pre-existing health issues you knew you had before taking out the insurance. As mentioned, the specific illnesses covered and not covered will be detailed in your policy.

The most significant thing is that the benefit gets paid if you fall victim to one of several specified critical illnesses and pays out whatever the long-term prognosis of that illness. The type of conditions covered vary from company to company; that’s why this type of insurance cannot be solely price-driven, and seeking Specialist Mortgage Advice in Manchester is recommended.

In practice many businesses will offer Life and Critical Illness Critical cover as a combined policy and would usually payout on the “first event,” namely whatever happens first – either death or a severe illness – the payout is made. They could also get written on a single or joint life basis.

Income Protection

Whereas Life and Critical Illness cover pay out a lump sum, Income Protection pays out a monthly sum intended to replace your wages in the event of you being unfit to work. In contrast to the Critical Illness cover, there are no limitations on the illnesses or injuries covered, the only factor being whether they make you unfit to work.

There are, however, restrictions on how much you can cover and how quickly benefits would start to get paid. Such As Life and Critical Illness cover, these policies are underwritten based on your health and lifestyle at the time you apply. All income protection policies get written on a single life basis.

You can also combine Life Insurance, Critical Insurance, and Income Protection, into what’s called a menu plan. The providers do give you a discount each time you add a benefit in, and that can be a cost-effective way of taking cover.

With a Menu Plan, you can mix and match a range of cover and benefits to tailor a plan that suits your needs and budgets. We strongly advise all our customers should the worst happen, least you have covered yourself and your family, to find out more speak to one of our mortgage Advisors in Manchester today.

Family Income Benefit

The least common of the mortgage protection policies but can often be useful – especially for those with young households. These plans can get taken to Life and/or Critical Illness Cover, and get underwritten on the application in the same way.

However, in contrast to the traditional forms of policy, rather than pay out a lump sum, the cover would pay an annual or monthly income for the remainder of the term of the plan. Consequently, it can replace the payment of the primary worker for several years, dependent upon a particular client’s circumstances and, because of this would usually be written on a level or basis, or an index-linked basis designed to keep up with inflation.

Get in Touch with a Mortgage Advisor in Manchester Today

Many people have one or more of the different types of policy, and it would be wrong to think of Mortgage Protection Insurance as just an “either/or” choice. However, affordability plays a massive part, whilst it would be fantastic to cover yourself for every potential opportunity.

Our Mortgage Advisors in Manchester are here to discuss with you and tailor the type of cover to be the most suitable combination to your family’s priority and budget. To find out more, give us a call or fill out our enquiry form to speak with one of our Dedicated Protection Specialists Advisors in Manchester today.

Manchestermoneyman.com & Manchestermoneyman are trading styles of UK Moneyman Limited, which is authorised and regulated by the Financial Conduct Authority.

UK Moneyman Limited is Registered in England, No. 6789312 | Registered Address: 10 Consort Court, Manchester, HU9 1PU.

Authorised and Regulated by the Financial Conduct Authority.

We are entered on the Financial Services Register No. 627742 at www.register.fca.org.uk

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