1. The property
- Type and location. Standard residential investment property in England is lent on by everyone. Commercial, land, rural and unusual construction narrow the pool. Some lenders exclude specific postcodes.
- Value. The lender lends against the lower of price and valuation, unless you can show the purchase is below market value and the lender lends against value.
- Condition. Uninhabitable is fine for a bridge; the lender wants to know what it takes to make it lettable or saleable.
- Title. Freehold or long leasehold, registered, no restrictions that prevent a charge. Leases need 70+ years at the end of the term for most lenders.
- Tenure and occupancy. Vacant, tenanted on an AST, or a commercial lease. Anyone living there who is related to you makes the loan regulated.
2. The exit
Covered in detail in our exit strategies guide. The lender wants one credible, evidenced route to repayment, ideally two. Sale: comparables and an agent's view. Refinance: a decision in principle and rent that passes the stress test. Another receipt: documents and dates.
3. The borrower
- Experience. What have you done before? Photos, addresses, numbers. First-timers are lent to, at slightly lower LTV and with more questions.
- Deposit and costs. In an account, with statements showing where it came from. Gifts and company funds need a paper trail.
- Credit. Adverse credit is not fatal but must be disclosed. Lenders find it anyway, and an undisclosed default is worse than a disclosed one.
- Structure. Personal name, limited company or SPV, partnership. Companies need directors' personal guarantees.
- Affordability. Only if interest is serviced. For retained interest, the lender does not test your income.
How to present a deal
One page. Property address and type. Purchase price or value, with the source. Loan required and LTV. Works, if any, with a costed schedule. End value with comparables. Exit, with evidence. Timing. Who is borrowing and what they have done before. Attach the documents. A deal presented like this gets terms in hours; a deal presented as a phone call and a guess takes days and prices worse.
What gets deals declined
No exit. Overvalued property. Works budget that does not match the plan. A related person living in the property. Undisclosed credit problems. Deposit that cannot be traced. Leases too short. Planning not in place for works that need it. Almost all of these are visible on day one, which is why we ask the questions we ask.
About the numbers on this page. Rates, fees and loan-to-values are typical market ranges for unregulated bridging in England, given so you can size a deal. They are not an offer. Your terms depend on the property, the exit, the lender and you.
Questions we get asked
Will bad credit stop me getting a bridging loan?
Rarely. The lender's security is the property and the exit. Defaults, CCJs and missed payments narrow the lender pool and may raise the rate, and they must be disclosed. Undischarged bankruptcy is a different matter.
Do I need to prove income?
Only if interest is serviced monthly. For retained or rolled-up interest, most lenders do not test income at all. The exit lender will, if the exit is a refinance.
Does the lender care what I do for a living?
Not much, except where it affects the exit (a refinance needs income) or the project (a builder doing their own refurb is credible; an accountant doing structural work is not, unless they have a contractor).
Tell us the deal.
A few numbers and a postcode is enough for a first view. Indicative terms cost nothing and commit you to nothing.