Residential Capital Raise

Residential Capital Raise

Talk to us today about a residential capital raise bridging loan and find out below how they can help you. 

What Is a Residential Capital Raise Bridging Loan?

A residential bridging loan is a kind of short-term financing that works as a solution for homeowners who are trying to raise capital against the value of their property (residential property).

Our residential bridging finance is often utilised when homeowners require fast funds, but don’t want to go through more lengthy traditional methods like refinancing property.

What a Residential Capital Raise Bridging Loan Can Be Used For

Bridging loans for residential property can be used for a range of purposes, yet these will of course be related to the property. Some examples of why people apply for bridging finance for capital raise include:

Home Renovations 

Often, a residential capital raise bridging loan may be used to raise capital for renovations, repairs or large-scale improvements. This could include large purchases such as a new bathroom, a new kitchen or even an extension all of which can contribute to an increase in the property’s value.

Pay off Debt

Another reason somebody may utilise a fast bridging loan is to pay off any outstanding debts, this is a popular way of consolidating any debts that may be spread out across various accounts. 

For example, somebody may have debt on a credit card or two or a high interest personal loan, all of this can be difficult to keep up with. For that reason, people may take a capital raise bridging loan to streamline all payments and opt for a lower interest rate in the process.

Investment into Property

Another way that people may use bridging finance is to invest in further property. Sometimes, to be reactive when it comes to buying property it is important to have funds fast, bridging loans make this reactiveness possible.

Home Emergencies 

It is rare that people are always prepared for residential emergencies. For example, a boiler breakdown can be detrimental in the winter, yet more than anything, incredibly expensive. Having access to a fast bridging loan can ensure that your family isn’t waiting around for fixes.

Benefits of a Fast Bridging Loan

One of the main benefits for those that apply for bridging finance is the speed; the loan is designed to be accessible, fast and for users to seize opportunities as they come.

Another key benefit from us at MS Lending Group is that we offer a bridging loan with no valuation, this is provided on loans up to £500,000 on residential commercial and semi-commercial purchases. 

This encourages speed, ensuring that you can get what you need without lengthy processes. 

Ultimately, we aim to make lending simple. You can rest assured that a residential capital raise bridging loan from us will provide you with the financial freedom to wait no longer, and get the job done with speed and confidence.

Why Choose Us for Residential Capital Raise Bridging Loan

At MS Lending Group, we are a trustworthy lender that puts our clients first.

Working with us ensures that you’re no longer waiting for time consuming mortgages or bank loans. Instead, with our efficiency, you’re able to capitalise and act reactively. 

Speak to us today to find out how we can help you secure your next venture with our financial assistance.

What people are asking…

“I own a rental property outright and want to release equity fast to secure my next purchase. Can a residential capital raise bridging loan get me the funds without a lengthy remortgage?”

In short, yes.

This is a popular route that property investors take when they have found another purchase and need access to capital quickly. 

Rather than waiting for a regular mortgage application and completion process, residential bridging finance is there to provide short-term funding against the equity available in your existing property.

The amount you can raise is subjective, and is dependent on a range of factors including the property’s value, any existing borrowing, your circumstances and your proposed exit strategy. 

The loan amount could then be used towards another residential property purchase, refurbishment or investment opportunity.

Yet, do note that as with any bridging finance, you will need to demonstrate a credible way of repaying the loan, such as refinancing the property or selling an asset.

The best way to proceed is to contact a bridging company early in the process since this can help establish whether you meet the relevant bridging loan eligibility requirements and whether a capital raise is appropriate for your investment plans.

“I have a mortgage on my investment property at a rate I don’t want to lose. Can I raise capital with a second charge bridging loan on top of it?”

A second charge bridging loan could allow you to raise capital against a property that already has a mortgage.

This can be especially useful when you have a mortgage rate that you do not want to lose, yet still need to access some of the equity tied up in the property.

How does this work exactly?

In short, your existing mortgage stays in place, while the bridging lender takes a second charge over the property.

Then, the lender, such as our team at MS Lending Group, goes over the property’s value, your existing mortgage, the amount you want to borrow and of course, your planned exit strategy.

The total borrowing must leave enough equity in the property for the lender to consider the loan viable.

This type of arrangement can be particularly useful for investors who need a fast bridging loan to take advantage of another property opportunity.

However, second charge finance can have different costs and criteria from first-charge lending, so it is important to assess the overall borrowing position before proceeding.

“My buy-to-let needs a full refurbishment before I can remortgage it at its true value. Can I raise capital against the property to fund the works?”

Potentially, yes. A residential bridging loan can be used to release capital against a property if for example a refurbishment is needed before it can be refinanced at its anticipated value.

More often than not, this happens when the property’s condition is preventing you from getting the longer-term finance that you want.

As a lender, we would also need to know exactly how you intend to repay the bridging facility once the refurbishment has been completed.

This could involve refinancing onto a standard buy-to-let mortgage or another appropriate form of residential bridging finance.

For investors who are refurbishing the property, bridging finance may also be an option depending on the scale and nature of the project.

The right option for you will depend on the property, the types of works being undertaken and the planned exit strategy.

frequently asked questions

What is a Residential Bridging Loan?

A bridging loan is a short- term financing option used to help bridge the gap between the purchase of a new property and the sale of an existing one. They are generally used to help complete quickly in the property market. A bridging loan is designed to provide immediate funds. This can be to cover immediate expenses, such as the down payment on a new property, while waiting for the proceeds from the sale of the current property, or to help acquire a property in a busy market. With a quick application process and a shorter repayment period, bridging loans are a convenient solution for clients in need of temporary and fast funding to facilitate a smooth transition during property transactions.

Why Do I Need a Residential Bridging Loan?

A bridging loan is of benefit if you need money quickly, if you want to pose as a cash buyer to gain an advantage in the property market, if you purchase a property at auction but cannot get the funds ready on time. A bridging loan can also help facilitate and improve a property before remortgaging onto a long term regulated mortgage. If a customer has adverse credit, and may need 12 months to improve their credit, a bridging loan is often a good solution.

Is an Exit Strategy Required on Application?

An exit strategy is always required before committing to a bridging loan. It is important the lender knows how you plan to repay the finance whether this is through a sale or a longer term refinancing option.