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.