Central Bridging: Non-Status Bridging Loans Explained

October 16 05:15 2018

In simple terms a non-status bridging loan is one where the primary focus of the lender is on the value of the security. If the security is strong the lender will be less concerned with the clients past and more focussed on the positive plans they have for the future.

Status refers to the amount of financial information a potential borrower can produce to support their application and although non-status doesn’t necessarily mean that an applicant has credit problems, it does allow a loan application to be assessed with a strong focus on the value of the security and the borrowers proposed exit/redemption strategy. Crucially, even if clients have experienced financial difficulties such as County Court Judgements (CCJs) or even bankruptcy they can still potentially qualify for a non-status loan.

Some non-status bridging loans are serviced with regular monthly payments, but many are not, with interest paid up front out of the loan proceeds and repaid in full when the loan is redeemed. This type of loan structure allows the bridging lender to place less of an emphasis on affordability and gives applicants the opportunity to invest in a potentially profitable real estate projects that might otherwise be beyond their reach.

Given the above it is hardly surprising that non-status bridging loans are often an invaluable tool in the armoury of property developers and investors. Many don’t have substantial cash flow income, but a non-status loan will allow them to leverage their assets to complete a quick purchase that might otherwise pass them by. Sometimes this purchase might allow the acquisition of a property pending a planning application. Once the property has been secured the borrowers can then gain the required planning consent and switch to a mainstream development loan.

Non-status bridging loans can be arranged for all types of commercial and residential property including:

• Auction purchases
• Property development
• Refurbishment, renovation and conversion projects.
• Acquiring land (with or without planning permission)
• Refinancing existing investments

Finally, non-status bridging loans will typically be offered at slightly lower loan to values (LTV) than a loan that has been fully status assessed. They will also tend to attract slightly higher rates than standard bridging loans but the opportunities they offer to clients who would otherwise be unable to borrow more than outweigh these minor negatives. They play a key role in driving the property market.

Still unsure and need to explore your options? Why not consult an expert?

Central Bridging are experts in the provision of non-status bridging loans with a great track record. We are a principal lender offering a range of loan facilities for business use from £100K to £2.5M over periods from 3 to 24 months. Our loans are secured on freehold property across England and Wales and interest can be rolled up or serviced.

Crucially you will always speak to a decision maker who will take time to understand you and your situation and unlike some of the bigger banks will then tailor a solution that best suits your needs rather than their own.

Why not give us a call on 03332 400 506 for an informal chat about your options.

Media Contact
Company Name: Central Bridging
Contact Person: John Clifford
Email: Send Email
Phone: 03332 400 506
Country: United Kingdom
Website: https://www.centralbridging.co.uk