Criteria

To see the criteria for a particular product simply go to the appropriate product page.

Term Loans Criteria

Location England and Wales
Term Minimum term 2 years
Maximum term 30 years
Valuations All valuations are valid for 6 months
Early Repayment Charge (ERC) Variable: 3% years 1-5, then 1% for the life of the loan.
Fixed: 4% year 1, 3% for remaining fixed period, then 1% for the life of the loan
10% of the balance can be repaid in any 12 month period, without notice and without incurring ERC.
Interest-only option Available on all products:
  • Up to and including 10 year term – no loading
  • 11 years to term – loading of 0.5% on standard rate
Clients Loans can be made to individuals (see note below), limited companies, LLPs, partnerships, trusts and pension schemes. Available for owner or investor.
Excluded property types Heavy industrial, petrol stations, religious property, hostels, bedsits, equestrian centres, public houses, agricultural properties, catteries, kennels, golf clubs, hospitals, mobile home parks, garden centres, telecommunication masts and all other uses within Classes A4, C2, C2A and D2 of the T&CP Use classes order 1987 or those properties listed as Sui-Generis
Sector experience For Commercial and Semi-Commercial: Minimum of 2 years relevant sector experience at managerial level or similar
Credit history Good credit history is required – at least 2 years with no adverse credit.
Interest rate Interest rate is margin plus LIBOR.
3 month LIBOR is currently 0.80%, and subject to a minimum rate of 0.75% and this applies until LIBOR gets to 3% at which point the minimum LIBOR rate becomes 3%.
The start rate on the individual loan is the lifetime floor for that loan.
Margin cascades up for unusual cases 1-3%.
Fees

Commercial and Semi-Commercial

£130 Administration fee is payable when the valuation is instructed, and is non refundable.  

1.50% Arrangement Fee, payable on completion, can be added to the loan and is non refundable. 

Arrangement fee reduces by 0.25% for applicants with a clear 6 month InterBay payment history. 

 

Buy to Let & HMO

£130 Administration fee is payable when the valuation is instructed, and is non refundable. 

1.70% Arrangement Fee payable on completion, can be added to the loan and is non refundable.

Arrangement fee reduces by 0.25% for applicants with a clear 6 month InterBay payment history. 

Arrangement fee reduces by 0.50% for loans above £1m.

Minimum fee (if combining discounts) is 1.20%. 

Expat

For our Expat products, certain lending criteria applies:

Commercial Expat
Semi-Commercial Expat
BTL & HMO Expat

Unregulated Bridging Loans Criteria

Term Up to 18 months

Minimum 1 month interest payable

Fees Arrangement fees – 2% – can be added to loan but cannot exceed LTV threshold

Exit fee – 0%

Valuation and legal – see fee scales

Loan size Minimum £100,000

Maximum £5,000,000

Loans above £750,000 require Credit Committee approval

Location England and Wales
Eligible borrowers UK and EEA nationals residing in the UK for 36 months UK-registered, non-trading Limited Companies or Limited Liability Partnerships, where the Directors/Members all provide full personal guarantees
Borrower age Maximum 21 years

Maximum 85 years (at end of loan)

Exit If the exit strategy is a refinance, a stressed rental assessment will be applied to inform the exit strategy review

Any exit strategy considered as speculative will not be acceptable

Default loading If the loan is not repaid within the agreed term, a default charge of 0.25% pcm will be applied (3.0% pa).

Bridging Loans Loan Purpose - Unregulated loans only

Short term finance Secured on investment property

Property is habitable or in suitable condition to be let on completion of the advance;

Auction purchase Secured on investment property purchased at auction

LTV will be based on the lower of the purchase price or market value;

Developer exit Secured on a residential development that has reached practical completion, with the benefit of all consents and a Warranty or Professional Consultant’s Certificate (PCC)

The property/properties must be marketable and only recently offered for sale

100% of net sales proceeds must be used to reduce the loan until LTV reaches 50% or less;

Medium/light refurbishment Secured on a residential investment property where planned refurbishment works do not require planning permission or building regulations, and there is no change to the overall use or nature of the property e.g. internal refurbishment / reconfiguration – redecoration, replacement of bathrooms, kitchens, replacement doors, windows, flooring, non-load bearing re-configuration;
Heavy refurbishment Secured on residential investment property where planned refurbishment works require planning permission or building regulations e.g. Structural works and extensions/loft conversions

Applicants without a two year proven track record of refurbishment properties are not acceptable;

Commercial Excluded property types: Heavy industrial, petrol stations, religious property, hostels, bedsits. equestrian centres, public houses, agricultural properties, catteries, kennels, golf clubs, hospitals, mobile home parks, garden centres, telecommunication masts and all other uses within Classes A4, C2, C2A, and D2 of the T & CP Use classes Order 1987, or those properties listed as Sui-Generis.