There are a number of factors in deciding this including how it was/is purchased ( i.e at auction?) , the presumed condition of the property , the loan size , Ltv required and basis of our charge e.g 1st, 2nd or 3rd. In many cases we may agree no evidence of valuation whatsoever in others a drive by or possibly a full valuation. We will advise you of this at initial quotation stage.
Unlike most lenders we recognise our introducers often see clients at unsocial hours and need immediate decisions that’s why we offer every introducer our directors mobile number and welcome enquiries at any reasonable hour ( though try it at three in the morning and you may get short shrift!) .
If you wish to submit an application on a clients behalf we will require our introducer agreement completing and checks will be carried out to confirm any relevant permissions, as applicable at that time, are held.
We do not dictate what an introducer can charge , after all it is your client. All we ask is that you reach agreement with your client and the fee is not disproportionate. Typically we would expect a fee of no more than 15% on advances under £25,000, 10 % on advances under £50,000 and 5% above this ( subject to a maximum of £7,500) however we are happy to discuss this on an individual basis.
We are happy to consider repaying another bridging loan however this must be in the clients best interests and a plausible explanation provided for the failure of the original exit. We will need to be confident the clients new exit strategy is reasonable.
Generally we will work on the lower of purchase price or valuation however we will consider working on the higher figure where a genuine reason for the Below Market Value purchase exists (i.e related vendor). We have no minimum period of ownership before we will consider an increase in value therefore if a client genuinely improves a security following purchase we can consider lending on valuation.
NO . Development is invariably more complex involving rights of access, numerous planning conditions and third party involvement. This would require the involvement of solicitors and is best left to those with experience in that sector . We are however happy to consider ‘top up’ funds where a development is already well progressed and heavy refurbishment.
NO. In order to keep as simple and quick a process as possible we only lend to individuals.
Subject to loan size, Loan to value and exit strategy we will consider lending without a prior mortgagees consent. In these cases we will require the client signs an agreed notice (AN1) and a restriction (RX1) in order for us to obtain security.
We will consider a 1st , 2nd or , in exceptional circumstances, a 3rd charge on residential , buy to let, land and semi-commercial/commercial property provided the advance fits the definition of an exempt agreement within the FSMA. We do not have a minimum valuation but will often restrict Ltv on lower value/poor quality properties.
We consider every application on its merits . The actual rate quoted will depend on many factors including location, property type ,client status, loan size, ltv,1st/2nd or 3rd charge etc. We will always confirm the rate day one and ,subject to no change in circumstances , stick by this.
We consider all client circumstances. Where a client has clearly had difficulties we will require that it is demonstrated how our advance will benefit the client and how realistic an exit strategy they have. We are looking to assist a client not add to existing difficulties.
This can be quite complex however , as a general rule, most Buy to Let , land ,commercial and semi commercial applications are exempt. In addition a second or third charge on a clients own home OVER £25,000 and primarily or wholly for business purposes are exempt. Business purpose could include raising capital to purchase a BTL or for refurbishmnt of an existing BTL together with meeting cashflow ,purchasing equipment or paying business liabilities such as HMRC demands.
NO. We will only make an advance which fits the definition of an exempt agreement
The client is , and always will be, YOUR client. We are happy to discuss ways in which you retain that relationship whilst the application is processed. Your level of involvement can be tailored and in certain circumstances we will allow you to handle many of the processing issues such as settlement figures , consent and valuation however we will always need to speak to the client day 1 and ,whilst you can be present, our representative will always need to visit and witness signatures.
HFBS has long been the industries best kept secret. Whilst we have been active in the short term loan market for longer than most we have concentrated on a small number of larger distributors enabling us to carefully manage our lending volumes.
Generally NO however in some cases we will require a valuation, if this is the case we will advise you day 1 and require payment once the client has received our agreement and decided to proceed. Our valuation fee scale is one of the most competitive in the market and available to view elsewhere on the site.
We encourage clients not to consider a bridging loan unless they are confident of redeeming within the term however we do understand there are occasions when the client is unable to redeem in time. We work closely with the client and the introducer during the term of the agreement and , if unable to redeem in time , we will generally agree forebearance provided the client is taking reasonable steps to correct this. We do NOT wish to penalise a client who is taking the correct steps therefore do not have a default rate however , for exempt agreements , a one off fee of £400 may be charged to consider an extension.
The client can choose to pay the interest on a monthly basis OR have the interest ‘Rolled Up’. If the client chooses to ‘Roll Up’ the interest it will be calculated monthly and increase on a compounding basis to be repaid on final redemption. Partial payments can be made during the term and this element of the debt will cease to incur interest once cleared to the account.
We appreciate not every lender does this however it is important , if not insisting on solicitors, that we have the opportunity to ensure the client fully understands there obligations at an early stage. We visit the client to satisfy ourselves as to there identity and to ensure the documents are correctly completed.
NO. We are careful to explain all the benefits and disadvantages of our advance to a client day 1 and to provide them with the clearest , simplest agreement via post so that they have the opportunity to read it at there leisure and consider carefully. We encourage a client , if in any doubt whatsoever, to consult independent legal or financial advice before proceeding. We simply wish to give the client the option.
NO. There are occasions when even we cannot avoid there involvement however in most cases this is simply to act as a witness to our clients signature(s) and to provide independent advice. This is generally required where one or other client is over 70 years of age, does not have a good understanding of English or is a party to the borrowing but not directly benefiting from it. In addition there are occasions when we are lending for purchase or a transfer is taking place. In these circumstances we will require the clients solicitor to provide us with an undertaking to register our charge.
Unlike many lenders we do not have a southern bias. We will lend anywhere in England and Wales. Unfortunately we will not consider Scotland.
SIMPLICITY. We actively look for ways of making things simpler such as our ability to complete without solicitors, our two page application form and our 1 page product guide. Bridging really does not have to be complicated.
We are a small experienced team and make no apologies for doing business the ‘old fashioned way’. Our preference is, and has always been, to talk so pick up the phone ! Alternatively we appreciate there are occasions when a deal is a little more complex or you wish to supply supplementary information , in these cases you can email us an outline of the case or complete our online application . The choice is yours.
Our senior directors are David and Ian Broadbent who have between them over 65 years financial experience.
The success of our model means we have received a considerable increase in our funding lines and wish to increase, via the addition of quality introducers, our volume.
We are not only a lender but due to our funding being 100% private monies we have complete authority on lending unlike many of our competitors who require ultimate agreement from the hedge fund/bank providing funds.