Bridging loan for an MUFB

MUFB bridging finance is a fast, short-term finance product that property investors use to fund the purchase or conversion of MUFB properties.

Bridging loans can complete in anything from a few days to two weeks, making them an ideal option to finance a time sensitive opportunity.

They’re often used to fund auction purchases, multi-unit freehold block conversion finance chain breaks or other urgent situations involving profitable investment in multi-unit properties.

What is MUFB bridging finance?

MUFB bridging finance is a type of property finance that is used to fund the purchase, refinance or conversion of MUFB properties.

It can be arranged for anything from 1 to 18 months and is designed to ‘bridge the gap’ between to events occurring, for example, purchasing a property at auction and a MUFB mortgage being arranged.

As a short-term finance product, bridging is not suitable for long term lending and must be repaid at the end of the loan term. How you intend to do this is known as your exit strategy and is a key part of how bridging loan applications are assessed.

How much can I borrow?

We can arrange bridging loans for MUFBs from £10,000 with no maximum loan size.

For larger properties or portfolios requiring finance over £1,000,000, we offer a specialist range of large bridging loan products.

Your maximum loan will also depend on loan to value rules.

We can arrange a maximum loan to value of 80% for existing MUFBs, or up to 90% LTV when converting a property to an MUFB.

For below market value transactions or those with additional security, we can offer 100% bridging loans to cover 100% of the purchase price.

Read more – Non status bridging finance or Bridging loans for HMOs.

What information do you require when I apply?

When you apply, you will be expected to provide the following:

• Proof of ID
• Proof of address
• An application form (we can fill this in for you)
• Details of your plans (buy quickly, conversion, refurbishment etc)
• Details of your exit strategy

Once we have these things, we can pick up the application and will be able to manage the application on your behalf from here.

You will not be expected to provide any of this information (other than a basic overview of the transaction and property details until you’re ready to apply for a bridging loan.

How much does it cost?

The main cost of taking out a bridging loan for an MUFB is the cost of the interest charged on your borrowing.

The best bridging loan rates in the market currently start at 0.39% per month.

Most loans cost between 0.39-0.75% per month, meaning the interest cost is £390-£750 per month per £100,000 borrowed.

On top of the interest cost, you will also face several fees. They are:

• Lender arrangement fee – The lender arrangement fee can usually be added to the loan and is 1-2% of the amount borrowed.
• Broker fee – At ABC Finance, we don’t charge broker fees for arranging MUFB bridging loans, but many brokers do. When using a broker who does charge fees, expect to pay a further 1% of the amount borrowed, plus an upfront fee in some cases.
• Valuation fee – We use desktop valuations where possible, but some applications will also face a valuation fee.
• Legal costs – When arranging property finance, there are also legal costs to pay. These are quoted individually and paid in two parts, a smaller amount to get the legals moving with the remaining amount paid on completion of the loan.

Read more – Bridging loan for a barn conversion or Bridging loans for a hotel.

Who can take out MUFB bridging finance?

We can arrange bridging finance for MUFB properties for the following applicants:

• Individuals
• Partnerships
• LLPs
• Limited companies
• Expats
• Overseas borrowers

How do I get started?

To get started, get in touch with the team at ABC Finance by enquiring online or calling us on 01922 620008.

Upon receiving your enquiry, we will look to understand your transaction and what you need from a product.

From there, we can offer written terms and an agreement in principle within 1 hour.

If you’re happy with the terms offered, we can submit your application on the same day.

We support you in pulling together the required documents and manage the whole application process on your behalf.

If you also need help in arranging a refinance to an MUFB mortgage to exit your bridging facility, we can also work with you to arrange this.