An “Unregulated Bridge Loan” is a short-term financing product to bridge the gap between one property transaction and the next. There are specific criteria for a loan to be defined as an unregulated bridging loan.
The usual criteria is when the property, used as security, is used for business or investment purposes. It also entails that the borrower is not currently nor intending to live in the property. That also includes any immediate family.
These loans are not eligible for borrowers who reside at the same house used as security. That would be a regulated loan
We offer unregulated bridging loans against the following properties:
- Investment property (houses or flats)
- House of multiple occupancies (HMO)
The type of security and the overall LTV are factors considered when calculating the monthly interest rate we charge.
Our rates are between 0.85% to 1.12% per month.
Unlike other lenders, we do not take upfront charges from borrowers such as administration or valuation fees (at enquiry stage) nor charge an exit fee at the end of the loan term. There are however certain fees which are deducted upon draw-down from the loan such as:
- Legal fees.
- Valuation fees.
- Arrangement fees.
Your account manager will be happy to discuss fees and provide a breakdown of cost upon enquiry.
We try to complete the loan within a window of 21 days (however, it can take longer depending on the complexity of the security).
Your dedicated account manager will help discuss the loan application and will keep you updated during the application process.