Unregulated Bridging Loans

If your client is buying or remortgaging a property in need of refurbishment, if they are looking to exit expensive development finance terms while they sell, or if they simply want to complete an investment property purchase quickly, our Bridging Loans can help.

How To Access This Product

This product is now available to all existing InterBay panel brokers.

To discuss how access to our Unregulated Bridging Loans, please contact your Senior Business Development Manager or our Sales Team.

Rates

All rates shown are per month*

Buy to Let and HMO

Mortgage type 55% LTV 65% LTV 75% LTV
Short term release of equity 0.44% 0.54% 0.64%
Auction purchase 0.44% 0.54% 0.64%
Developer exit 0.44% 0.54% 0.64%
Light/medium refurb 0.44% 0.54% 0.64%
Heavy refurb 0.54% 0.64% 0.74% (Max 70% LTV)

3 month LIBOR is currently 0.80%, and subject to a minimum rate of 0.75%

Commercial and Semi-Commercial

Mortgage type 55% LTV 65% LTV 70% LTV
Short term release of equity 0.75% 0.85% 0.95%
Auction purchase 0.75% 0.85% 0.95%

*Rates calculated using a margin over 3 month LIBOR (3 month LIBOR is currently 0.80%, and subject to a minimum rate of 0.75%) over a 12 month period. LIBOR subject to change every 3 months.

Maximum LTV

The following limits are gross, including added fees and rolled up interest:

Type Rate Maximum LTV Value over £3.5m Re-bridge
Standard 3 month LIBOR + 75% 65% 65%
Light / medium refurb 3 month LIBOR + 75% 65% 65%
Auction 3 month LIBOR + 75% 65% N/A
Heavy refurb 3 month LIBOR + 70% 65% 60%
Commercial 3 month LIBOR + 70% 65% 60%

Product Details and 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
Minimum Leasehold Term BTL/HMO (Standard) – 50 years at end of loan term
Commercial – 65 years at end of loan term
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 Minimum 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).

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.