Affirmative Finance are a direct lender in development and bridging finance, located in the heart of Manchester’s City Centre. Affirmative are an FCA authorised firm that have over 10 years of experience in the property finance sector. Being a regulated firm, they are able to offer both first and second charge loans, with the latter having a slightly lower loan-to-value.
The unique thing about Affirmative Finance is that they do not charge any upfront fees during the application process or until the loan has been funded. This is different to other typical lenders in the industry who usually require you to pay an administration fee during the application stage. Plus, Affirmative allow you to take any administration or set up fees and add this to the overall cost of your loan, so you can defer the repayment and only pay it at the end of the loan term.
Loan Value Available
£10,000 to £1,000,000
18 months with no minimum term
Typical Time to Fund
No upfront fees
FCA License Number
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Bridging Loan Hub
5 Prospect Close
What Products Are Available from Affirmative Finance?
Affirmative offer bridging loans and typically work with property developers and investors, private individuals and financial intermediaries. Bridging is considered a fast way to access finance for a property or business opportunity. The loans are always secured, typically on a property.
The idea is that you are putting down a property you own (home, office, building) as collateral and you can apply for a loan to pay for your immediate expense. Then once you have recovered your investment perhaps by selling the property or cashing in from your business venture, you are able to repay your bridging loan.
Hence, bridging is common for when your property is not mortgageable through a high street lender, the banks have let you down or a short-term problem or business project arises and you need to fund it quickly.
Affirmative Finance also specialise in development finance which can be used for both commercial and residential properties. Their website explains that they you can use this type of finance to:
Refurbish or build your own home
Turn a house into flats for investment purposes
Develop multiple homes or flats
Build on your own land to increase your property’s worth or sell to another person
Why Work With Affirmative Finance?
With the finance offered by Affirmative, property developers and investors are able to avoid the traditional property chains and administration involved with a bank mortgage. Accordingly, customers are able to acquire the funds much quicker than a typical mortgage and get their project underway. This can be particularly useful if you have purchased a property through an auction and require auction finance to make up the deposit within the tight deadline.
Developers and investors will use the money they drawdown to purchase a property, renovate it and generate an income by selling it for a higher price or renting it out to tenants. If they have exited at the end of the loan term, they can repay their loan or have the option to remortgage/refinance.
Customers can apply for funding starting from £10,000 to £1 million. The amount you can borrow will naturally vary on the investment opportunity, your own history and value of the property in question.
First charge loans are available at 1% per month interest only and a typical APR of 28.9%
Second charge loans are available at 1.5% per month interest only and a typical APR of 32.8%
As mentioned, Affirmative do not charge any upfront admin fees but the additional fees will include legal and valuation fees. You will only pay for their solicitor fees if the loan completes, however, valuation fees will depend accordingly to the value of the property.
Money can be drawn down in stages to maintain a healthy cash position for when you are paying for the land, contractors and builders etc. Customers have the choice to repay monthly by standing order or by retained interest which rolls everything up until the end of the loan term.
Address: 7-9 St James Square, Manchester, M2 6XX
Countries they operate: England, Scotland and Wales, but you do not necessarily need to be living in England, Scotland and Wales to obtain a loan.