I do not really write on here about products we have access to as things change periodically but I thought this one deserved a post as it looks like a very flexible product and well priced.
We had a meeting with one of our account managers earlier this week and they have recently launched a Bridging loan with no real criteria, no adverse criteria, no affordability rules nothing. All they are really interested in is the property values up ok.
Bridging Loan with Bad Credit
The product available lends against the asset (ie the property) up to an LTV of around 70%. You could have been declared bankrupt last month or have multiple Defaults of CCJs – they do not care. They do not credit score and they will ignore all adverse.
Bridging Loan with no Income
As a bridging loan can be applied for with no contractual payments (the interest will roll up), there is no affordability assessment needed. This is great if your income is not sufficient on paper but there is profit in an investment property to be made.
The providers only concern is that there is the ability to repay the Bridging loan at the end of the term. They can accept various means of repayment, from sale of property through to being able to remortgage once it fits criteria with another company.
The asset can be any sort of property including a Buy to Let, HMO, Commercial, semi commercial or even just land.
What can the loan be used for?
There is no real stipulation. It can be used to renovate a property, a development project or to purchase a property at auction, break the chain in a house purchase, paying a tax bill or a divorce settlement. In short anything legal can be considered.
The Bridging loan
With rates from around the 0.4% per month mark (this will vary depending on the LTV and the products available at the time), there is a lot of flexibility with this product and could be ideal for those who are looking at unusual properties or have difficulty evidencing enough income or have had a difficult past with credit problems.
This is a type of business/commercial finance so is not regulated in the same was a conventional mortgage. You will be treated as a business making an investment but the company is regulated by the Financial conduct authority.
How we can help?
If you feel like this is something that may be useful for you, please do get in touch. We can through what you are trying to achieve and if we think it is something that may work we can run it by our account manager to make sure everything fits.