Regulated Bridging

Overview

Short term regulated loans for residential properties located in England and Wales that meet the criteria below.

Key features

Purpose
Regulated bridging finance for chain breaks, quick purchases and light refurbishment.
Max loan
£3,000,000
Term
6 to 12 months
Min loan
£100,000
Arrangement fee
2%
Max LTV net
65%
Max LTV gross
75%
Interest method
Rolled
Early redemption charge
None

Monthly interest rates

LTV net
Interest rates
≤50%
0.55%
≤55%
0.60%
≤60%
0.65%
≤65%
0.70%

Interest is calculated daily, then rolled up and added to the loan balance each month. Arrangement fees and other fees (title insurance) can be deducted from the advance or paid separately.

Criteria

Property types
Residential properties only.
Security
We can take a single security for the loan, or accept multiple securities (max 2) for the loan, but all security provided will need to be on a 1st charge basis.
Charge
1st charge only.
Refurbishment
Light refurbishment only. Refurbishment work that requires either building regulations approval or planning permission is not allowed.
Tenure
Freehold, or leasehold with 60+ years left on the lease.
Minimum age
21
Maximum age
No maximum age limit where sale of existing property or proceeds of probate is the agreed repayment strategy. Wherever a refinance forms part of the agreed repayment strategy, a maximum age limit of 75 years old at the end of term will apply.
Individual borrower requirements
Must be a UK resident and have been resident in the UK for the last 3 years, or have a 3 year UK residential history and a permanent right to reside in the UK. No first time buyers allowed. Maximum number of individual applicants is 2.
Individual borrower credit profile
No bankruptcy/IVA in the last 6 years.
Defaults allowed: none in past year, 1 in last 3 years.
Missed mortgage/secured payments allowed: none in past year. 1 in the past 3 years.
Unsecured arrears allowed: 2 in past 3 years.
County Court judgments (CCJs) allowed: 1 in the past 3 years up to a maximum value of £500 which must be satisfied prior to completion.
Criminal convictions: Not permitted unless relating to motoring offences.
Affordability
No income or affordability proof is required where the exit is sale of the security property. Wherever a refinance forms part of the agreed repayment strategy then evidence of income will be requested.
Exit
Sale of current property. Inheritance where a grant of probate has been issued. Remortgage provided evidence of mortgage offer is provided. Where multiple securities are used remortgage can be used in combination with the sale of another security property.

Valuation and legal

We take our legal and valuation requirements very seriously. Our loan evaluation process is designed to make this as efficient and reliable as possible.

Independent security valuation

We will carry out an independent valuation of the borrower’s security in order to confirm how much we can lend against the property.

Legal conveyance

We will instruct our solicitors to work on your client’s mortgage. Fees are typically charged directly to the borrower by the solicitor.

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