Bridging Loan Lending Criteria
If you are urgently seeking bridging finance, it’s worth knowing what lenders are likely to require from you to push things ahead. As a specialist broker, Tiger Financial arranges bridging finance through a panel of over 400 lenders, so we can match your application to the criteria that suit it best.
How lenders will review your request
Bridging loans are subject to several checks from whichever lender takes on the case, so it is advised to gain some understanding of the kind of checks you may expect to pass. The more you know about this criteria, the quicker and simpler your loan application will be to approve.
In the UK, there are over a thousand different loan providers, some being public bodies and others private entities. How they handle your loan request will vary from one to the other, which is exactly why working with a broker helps. With access to a 400+ lender panel, we can place your case with a lender whose criteria fit your circumstances, rather than you having to fit theirs.
If you need any personal assistance with your application, contact us and we will be happy to help you get things in order.
What lenders on our panel look for
Be sure to consider the below for your application:
Lenders on our panel typically require a minimum loan of £100,000, with maximum loan sizes depending on the value and strength of the project. Up to 70% LTV is usually available against OMV, with some panel lenders offering up to 80% on residential security.
Standard loan terms offered by lenders on our panel are between 3 and 12 months. On unregulated loan applications, terms can extend up to 24 months; on regulated loans, terms are limited by FCA rules to a maximum of 12 months.
Lenders will require a first charge on the property; a second charge will be considered, as will an equitable charge. Acceptable security types across our panel include commercial, mixed-use, residential and land.
Purpose will generally fall under; purchase, refinance, purchase of property at auction, light/heavy refurbishment, exit loan following development, planning/preplanning scenario.
Lenders on our panel will consider individuals aged 18+, UK limited companies, LLPs, SPVs and overseas companies/individuals.
There is no strict requirement for good credit across the panel, adverse credit is acceptable to many lenders on strong security, including CCJs, arrears and other credit issues. For some lenders on our panel, a credit report will not be needed.
Most lenders on our panel do not require proof of income, as interest can be rolled up over the whole loan term.
Lenders will usually expect an exit based on the sale of the property or refinancing, with other types of exit possible on a case-by-case basis.
Arrangement fees from lenders on our panel start from 1%, with additional valuation and legal fees. An exit fee may be chargeable depending on the lender.
Every lender applies these criteria differently. Because we arrange finance through a panel of 400+ bridging lenders, we can compare terms across the market and put your application in front of the lenders most likely to approve it quickly.