Free presentation evening

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WOULD you like to know more about Short Term Lending/Bridging Finance/Chain Break Finance?

If so, AToM is hosting a free to attend lender presentation event on Wednesday 28th March at 6.30pm at Horsham Park Barn.

This is an open invitation to all Customers, Estate Agents, Solicitors, Mortgage Brokers, IFAs and any other parties who would be interested in learning more about this fast growing part of the mortgage/finance market to hear directly from the experts.

Many lenders in this area of the market offer loans up to 75% of the property value (sometimes higher if additional security is offered).

These types of short term loan are calculated and charged on a daily/monthly basis.

Some offer to roll up the interest (no committed monthly payment) and interest rates range from 0.75% per month upwards and are normally arranged over a period of between 1 to 18 months.

Most will carry a lender fee and an assessment fee and some will include early repayment charges and possibly an exit fee. However, for the right scenario, these short term loans provide a superb and speedy funding line. Ideal scenarios include –

1) ‘Chain Break Finance’ - When a chain breaks, or you have not yet sold your property but found one you have fallen in love with, bridging finance may enable you to complete on the purchase before you have sold your existing home.

2) Refurbishment – allows you to buy and refurbish property quickly. A loan to support the purchase of a property on which you undertake refurbishment before it is eventually presented to a mortgage company or bank for long term re-mortgage finance, or sold.

3) Auction property purchase - Short Term Loans can be arranged very quickly and can be ideal where there are tight deadlines to meet. A typical 28 day completion from purchasing an auction property is usually easily achievable. A pre-auction valuation is considered a must.

These are just some examples, there are many others, so do come along to our event on Wednesday and listen to the experts. Places are still available. Please call AToM asap on the number below to secure your seat, or email pt@atomltd.co.uk

FINALLY, as I write this column, I’ve just noticed that Nationwide are the latest lender to cap their interest only lending at 50% of the property value on all residential mortgages (excludes Buy to Lets). This is with effect from Wednesday 21st March and all applications which exceed 50% of the property value will now only be considered on a repayment basis. Long live interest only!

Dale Jannels - AToM director