How do I get a non-status bridging loan?
The easiest way to apply for this type of loan is via an intermediary or broker. Most lenders of non status residential bridging finance only deal with intermediaries and will not offer loans directly to customers. This is good news if you want to apply for one of these loans, as it means you will receive a tailored offer to your needs and have the assistance of an intermediary to ensure the application process is as fast and smooth as possible.
Why might I take out non status bridging finance?
There are several main groups of applicant for this specialist type of property development loan. In main, they are developers who want to:
- Purchase a domestic property
- Release equity from their existing portfolio (rather than, say, take out a personal loan.)
- Carry out light redevelopment projects to make their investment properties fit for sale or to rent (such as installing a new bathroom or kitchen, redoing electrics, carrying out redecoration and so forth.)
- Converting single dwellings to simple and small HMOs via light works – To purchase a residential property quickly at an auction.
- To refinance an existing residential property.
Typically, applicants will have an issue on their credit report which means that other types of lending aren’t available to them. This could be because they have fallen behind on mortgage payments, because they have CCJs or because a payment default of some other description exists on their credit file.
How quickly can I obtain non status residential bridging finance?
This depends very much on the lender. Regulated loans which are overseen by the FCA tend to take a little longer to organise and non-regulated bridging finance tends to be quicker. In most cases, these types of loan can be organised within 3-7 days when applicants use Hank Zarihs to ensure the application process is as smooth and hassle-free as possible.
How do I repay a bridging loan if I have poor credit?
These types of short-term credit tend to be repaid when a property is sold, let or when mainstream and longer-term property finance is organised. Borrowers will need to submit their loan repayment plans when they apply.