Bridging Finance In Northern Ireland Gets Another New Lender

Source

A new Northern Ireland based bridging finance lender has entered the market to deal specifically with that region and they are prepared to lend up to 70% LTV. Previously most lenders would only lend up to 50% LTV and the one that claimed to lend up to 70% only did so in Belfast so this new Lender is a welcome addition to the market.

Made up of a syndicate of local businessmen, this new Bridging Loan company was set up  to take advantage of the fact that due to the dearth of finance options in Northern Ireland, many wholly plausible deals were getting overlooked. Not only do they feel that the market is commercial viable to lend in but there is also the passively held view in what they are doing that the property market in Northern Ireland may be reaching a nadir. The fact that they will lend on a first or second charge to 70% LTV is a clear vote of confidence in property prices.

The full terms of their proposition currently are:

• Loans up to 70% LTV available across all of Northern Ireland
• Terms of up to 7 months are available
• Interest rates are 2% per month
• Other charges include a facility fee of 2-3%, an admin fee of £1,500, an exit fee of 2-3% and the Buyer also pays their own legal fees
• Lending against BTL properties, commercial buildings or even land is possible but first charges against owner-occupied buildings is not though a second charge is (no regulated business).
• Min size £25,000 to a max of about £250,000

While this may not seem like the cheapest bridging loans, they are very comparable with the offering from other Lenders in Northern Ireland as you can see in this blog post here http://www.choice-loans.co.uk/blog/bridging-loans-in-northern-ireland-now-available/  It's important also to note that this new Lender has said that these rates are negotiable for the right deals . Our own inference from this is that they are testing the market to see what it will support and their rates may be adjusted over time.

The overall message here though is a positive one for Northern Ireland. The fact that yet another company are prepared to extend capital to the region is a reflection of a growing optimism in the province. We're not saying that the bottom has been marked in the property crisis but perhaps the rate of decline is, at least, showing signs of slowing.

To get in contact with this new Lender or any of the Bridging Loan lenders we have in Northern Ireland, please contact Choice Loans on 0845 1260350 or complete our bridging loan application form and one of our representatives will be in touch.