Bridging finance lending criteria
Our standard bridging lending criteria is shown below, but we can consider some applications beyond this
The applicant
Age
The applicant must be 21-85 years of age
Experience
We lend to property professionals
Residence
Applicant(s) must reside in the UK
Any Special Purpose Vehicle (SPV) including limited companies must be domiciled in the UK
Types of applicant
Acceptable applicants include:
- Individuals
- Limited companies (Ltd)
- Limited Liability Partnerships (LLPs)
- Public limited companies
Each Director, Partner (in the case of an LLP applicant) or member is required to complete and sign an application form
Any shareholder with a shareholding of more than 25% must be party to the loan application
Adverse credit
We will not consider the following forms of adverse credit:
- IVA/bankruptcy
- Repossession or voluntary repossessions
Other forms of adverse credit may be considered, where an adequate explanation and evidence is provided.
The property
Location
The property must be located in one of the following countries:
- England
- Wales
- Scotland
Security
We will always require each of the following:
- A legal first charge
- Debenture
- Personal guarantee(s)
Valuation
The minimum individual property valuation is £100,000
Property types
We do not lend against the following property types:
- Public houses
- Hotels
- Nursing homes
- Religious buildings
- Trophy homes
Occupant
The borrower or any person connected to borrower in any way whatsoever, is not permitted to occupy or use the property as their dwelling for the duration of the loan.
Property size
We will consider lending on properties that are the following sizes:
- 30m2 or over (outside London)
- 25m2 or over (inside London)
Non-standard construction material and methodologies
Not considered
The loan
Interest
Loans are made on a Deducted Interest or Serviced Interest method of repayment
Deducted interest is where the forecast interest amount is deducted from the loan on day one
Serviced interest is where the interest is paid on a monthly basis
Refinance
We will not consider regulated applications
Loan to value
We can consider:
- Residential bridge: 75%
- Refurbishment bridge: 75%
- Commercial bridge: 70%
- Second charge bridge: 65%
- Permitted development bridge: 75%
- Development exit bridge: 75%
- Land with planning: 65%
Refurbishment
We are able to lend against property that is being refurbished up to 75% of day-one value
We will require a schedule of works
Full planning must be in place
Exit route
There must be a viable exit route for all bridging loans
Legal representation
Separate legal representation is required
Deposit
We will always require evidence for the deposit
More in-depth information will be required where the deposit is to be derived from the following sources:
- Non-repayable gift from a relative
- Vendor loan
- Second charge
- Third party borrowing
Please note that this web page represents a sample of our lending criteria and is not exhaustive.