Bridging Loan Lending Criteria
There are more than 150 bridging loan providers in the UK, and lending criteria will vary with each different provider. Each lender will have their own set of criteria that applicants must meet to qualify for the bridging loan. Our extensive, leading panel of lenders allows Crystal Bridging Loans to provide the following lending criteria:
Lending Criteria – Loan Sizes, Terms, Loan Use
Our lenders offer bridging loans from £10,000 with no maximum value that you can borrow.
We provide bridging loans available with terms from 1 day up to 36 months. Bridging loans are designed to be repaid in full over a short period of time, so most lend up to a maximum of 18 months, with some offering up to 36 months.
Bridging loans can be used for almost any legal purpose, including:
- Buying a property before the current one is sold to maintain a place in a chain
- Purchasing property at auction
- Buying property in poor condition
- Paying urgent debts and meeting unexpected expenses
- Clearing bankruptcies
- Funding renovation, refurbishment, and restoration projects
- Business cash injection and raising working capital for your business
- Building a property
- Purchasing land
- Bridging a gap whilst waiting for other funds
How Do I Qualify For A Bridging Loan?
Lending Criteria - Availability, Location, Age
Age of Applicant
Applicants must be a minimum age of 18 years old to apply for a bridging loan. Some lenders also impose upper age limits. The applicant needs to be completely aware of what they are doing, unless there is a power of attorney in place.
Lending Criteria - Security & Property
Most providers require property as security. This could be one property or several properties. The lender will secure the loan by taking a charge over the property as first, second, or third charge. The lender will take ownership of the property if the loan is not repaid as agreed.
All property types can be used to secure a loan. This includes houses, flats, bungalows, mixed-use, shops, offices, industrial units, care homes, holiday homes, hotels, B&Bs, restaurants, bars, pubs, farmland, development land, parking spaces, and garages.
Bridging lenders are willing to accept properties in all conditions, including those in poor condition, in a state of disrepair, in need of restoration, or need to be demolished. Bridging loans are commonly used to raise funds for property renovations.
Some lenders may offer loans secured against other assets such as jewellery, watches, cars and vehicles, precious gems, gold, artwork, and antiques.
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Lending Criteria - Credit History, Interest Payments, Exit Route
Many lenders are not bothered about credit history. We have facilities available for those with CCJs, Defaults, Arrears, IVAs, bankruptcy, repossessions, statutory demands, winding up orders, and when conventional credit is unavailable.
Many lenders don’t require proof of income.
There are 3 ways to pay back interest on your loan. Monthly interest is paid monthly and it’s not added to your bridging finance balance. Rolled up interest is paid in full at the end of your loan when payment is due. Retained interest is borrowed for an agreed period and pay it all back at the end of the loan.
The exit route sets out how the bridging loan is to be repaid to the lender. There are many ways to do this, including selling the property or asset, refinancing, money due to be received, policy reaching maturity, or inheritance.
Most frequent questions and answers
To qualify for a bridging loan, criteria is flexible with regards to credit score, condition of property used as security, and loan use. The most important factors a lender will consider when determining whether you qualify for a loan are the value of the security property and the feasibility of the exit route that sets out how the loan will be repaid.