2nd Charge Bridging Loans
| Second Charge Bridges |
Max LTV1 | 65% | 60% | 50% |
Min Term | 1 month | 1 month | 1 month |
Max Term | 23 months | 23 months | 23 months |
Min Loan | £75,000 | £75,000 | £75,000 |
Max Loan2 | £3m | £3m | £3m |
Min Property Value | £500,000 | £350,000 | £350,000 |
INTEREST RATE | | | |
Interest3 | 1.6%pm | 1.50%pm | 1.40%pm |
RENTAL COVERAGE | | | |
For Buy To Lets | 100% | 100% | 100% |
FEES4 | | | |
Facility Fee | 3% | 3% | 3% |
Proc Fee | 1% | 1% | 1% |
Administration Fee | £350 | £350 | £350 |
Legal Fees5 | £850 | £850 | £850 |
ERCs6 | None | None | None |
PRODUCT CRITERIA
Residential Property only - owner occupied & Buy To Let properties only.
Properties in England only.
No CCJs, Mortgage arrears or defaults in the last 3 years. Any previous adverse will be considered on an individual basis.
Non regulated loans only, ie:
Business Purpose - where a client is using more than 50% of the net loan for business purposes.
High Net Worth Clients - where a client earns in excess of £150,000 per annum (If joint application, each applicant must earn in excess of this), or has a net worth of at least £500,000 (Excluding their main residence).
Buy to Let Properties - where a client is securing by way of a second charge on their Buy to Let property, irrespective of the purpose or whether they are High Net Worth.
Corporate Entities - where a client owns the property under a Limited Company, Off-Shore Limited Company or SPV.
PRODUCT FEATURES
DRAGONFLY FAST-TRACK REQUIREMENTS TO GO TO OFFER
Completed and signed Dragonfly Property Finance Application Form.
Copy Photo ID for each applicant.
Valuation addressed to BridgeCo Ltd & Fern Trading Ltd. All valuation fees are paid direct to the surveyor or the packaging broker. If valuation not ready we can instruct the offer subject to receipt of an undertaking for our legal fees from the client's solicitor.
If >50%LTV or the loan is to be serviced current - copy bank statements (3 months)
Consent from the first mortgage company (unless no restrictions on the "C" Register on the Land Registry search).
Redemption figure from first mortgage company (which will be used for LTV calculation).
Mortgage Reference Questionnaire or mortgage statement showing the last 12 months payments (If mortgage is not showing on CAIS).
Deed of Postponement or Maximum Liabilities Letter for all Open Plan or Flexible mortgages.
Redemption figures for any current second/third charges and/or cautions on the property.
Please refer to the "Dragonfly Property Finance General Lending Criteria" and the Agreement in Principle issued for full requirements.
WHO WE WON'T LEND BEHIND
Non High Street lenders (apart from First Direct, Mortgage Express, Virgin & First Active).
Non conforming lenders (such as iGroup, SPPL, Kensington, Future Mortgages, Mortgages PLC, GMAC RCF, Platform, Preferred, Edeus, FNB etc).
Specialist Lenders (such as Blemain Finance, Cheshire Mortgage Corporation, Lancashire Mortgage Corporation, Commercial First, Base, Interbay, Aldermore etc).
Any Bridging Lender.
AFFORDABILITY CALCULATION
Residential Owner Occupied Properties:
All applicants to complete an "Income and Expenditure" form using net pay for all incomes. This will be checked against the applicant's last 3 months' bank statements and his/her credit file. Any surplus income will then be taken into account and can be used to service our loan payment. If there is a shortfall, we will deduct this amount for the entire term of the loan.
Residential Tenanted Properties:
The rental income being generated must cover the first charge payment plus our payment by 100%. Any shortfall can either be supplemented by the clients own income (based on the affordability calculation above), or deducted for the entire term of the loan.
Download Product Sheet
NOTES
- Please see individual product sheets for full range of interest rates levied at the relevant Loan To Values.
- Loan to Purchase Price for Discounted transactions. The lower of LTV/LTP above will be used.
- The refurbishment product is only for loans where up to 70% of the costs of the refurbishment works are to be advanced. Where Dragonfly are not advancing the cost of the works, normal residential bridging loan rates apply.
- Commercial value based on bricks and mortar with the benefit of vacant possession.
- There is a further 2% interest pa deferral which is payable on redemption, ie the rate shown includes the deferral already applied. Please also see rental coverage requirements (note 8) below. The full interest amount payable on this product is 8.99% pa.
- The Buy To Let product is available on either a 2 or 3 year fixed term.
- Early Repayment Charges (ERCs) are 1-12 months/ 13-24 months/ 24/35 months depending on the term selected. In the final month of the term there are no ERCs.
- The rental cover required for the BTL and HMO product varies according to the rate selected. If the interest deferral option is selected, 115% rental cover will be required. If the full interest rate is selected, 100% rental cover will be required.
- There is a further 2% interest pa deferral which is payable on redemption, ie the rate shown includes the deferral already applied. Please also see rental coverage requirements (note 8) above. The full interest amount payable on this product is 9.99% pa.
- Larger loan sizes will be considered on an individual basis.
