Non-Status Bridging Finance
Get access to fast property finance with a non-status bridging loan from ABC Finance.
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Non-status bridging finance allows you to secure property finance quickly, without detailed underwriting slowing down the process.
While every bridging loan will have some degree of underwriting, non-status applications have very little, instead relying on the collateral offered as security.
In this guide, we break down what non-status bridging is, what it can be used for and how quickly you could get the money.
What is a non-status bridging loan?
A non-status bridging loan is a form of short-term property finance that has very limited underwriting.
It’s a form of fast bridging loan that relies on the security offered and your chosen exit strategy.
What can non-status bridging finance be used for?
It can be used for almost any purpose, including:
- To purchase a property quickly
- Purchase an unmortgageable property
- Repay outstanding credit
- Purchase below market value
- Finance a business transaction
- To finance a planning application
How quickly can I get the money?
Non-status applications can be completed very quickly, in as little as 3 days for new applications.
When you’re switching an application from another lender, we have completed applications on the same day – although this is rare.
For an average application, allow 5-7 days for the application to complete.
Read more – Bridging loan for auction property or Buy to let mortgages vs bridging loans.
How much can I borrow?
We can offer finance from £10,000 with no defined maximum loan size.
For a large bridging loan over £1,000,000 there is likely to be a greater level of underwriting, unless the loan to value is below 50%.
Your maximum borrowing capacity will be restricted based on loan to value – the ratio of the value of the property and the loan amount.
We can offer a maximum of 75% LTV for non-status lending.
What will it cost?
The cost of a non-status bridging deal is made up of the bridging loan rates charged and any associated fees.
The rates charged start from 0.75% per month, with rates increasing based on how little underwriting is required.
Non-status lending and low interest rates are largely incompatible, with bridging lenders pricing their applications according to risk.
For applications with the least underwriting, and fastest service, you’re likely to face higher interest rates, with 1% per month being reasonable.
Read more – Bridging loans for flipping houses or Bridging loan for an MUFB.
How do I get a non-status bridging loan?
The best way to get a true non-status bridging finance deal is to use a broker.
Most lenders state that they have a simple application process, but very few actually do.
A good broker will have strong experience of those who will take a pragmatic view to approving your finance application.
This can save you a huge amount of time and hassle.
At ABC Finance, we’ve been arranging non-status finance for borrowers since the year 2000.
What exit strategies are acceptable for this type of lending?
For most non-status applications, the only realistic exit strategy will be the sale of the security property.
Where the exit is coming through a refinance, the lender will have to ensure that the exit strategy is realistic, which by definition will mean increased underwriting.
While the lender may not require proof of income, they will still have to ensure you fit the lender that is funding the refinance criteria.
