Products and Rates

Market Leading Rates

In Summary...

  • First charge rates from 0.75% pcm with a daily interest calculation
  • Up to 70% loan to open market value
  • Loan size from £25k to £5m
  • No upfront or exit fees on standard product
  • Daily interest charge
  • Loan duration 1-12 months on standard bridging product
  • CompetitiveValuation and legal fees
  • Retained and serviced interest option
  • Competitive Arrangement Fee (minimum £750)
  • FCA Regulated

In Detail...

Loan

Minimum loan term: 1 month
Maximum loan term: 1-12 months (for Regulated and Non Regulated Mortgage Contracts)
Minimum loan: £25,000
Maximum loan: No maximum
Security: First charge. Second charge as additional security only
Regulated Mortgage Contracts: Yes. We will only accept advised sales
Interest: May be retained and/or serviced subject to affordability assesment

The following maximum LTVs normally apply:

  • Standard Bridging:
70%
  • Refurbishment:
70%
  • Conversions:
up to 70%
  • Development:
60% GDV
  • Build costs:
100%
  • Second Charge Lending:
60%
  • Regulated Mortgage Contracts:
70%
  • Maximum LTP:
85%
  • HM0:
65%
  • Semi-commercial:
65%
We led against Open Market Value rather than 180 or 90 day valuations. Interest in calculated daily.

Applicant

Minimum age: 18
Maximum age:
  • FCA Regulated Lending 75 at end of term
  • Non-FCA Regulated Lending 85 at end of term.
Max. no of applicants: No max
Individuals  
First time buyers: Acceptable subject to standard credit checks.
Limited companies  
Business applicants:
  • Limited companies providing these are set up with the speci c and sole purpose of purchase, management and sale of investment property (SPVs).
  • Businesses must have a UK registered of ce address and must operate entirely within the UK. › Limited companies must have a maximum of 4 directors, , LLPs must have a maximum of 4 Designated Members.
  • For all applications, personal guarantees from the directors will be required.
  • For non-UK registered borrowers, only SPVs registered in the following jurisdictions are normally allowable: Jersey, Guernsey, Isle of Man, Gibraltar, Cayman Islands and British Virgin Islands.
Credit history Adverse considered on a case by case basis

Nationality & residency

Residential status: In all cases we require a three year residential address history. UK passport holders only.

Validation

Full requirements will be notified following case assessment however, the following identifies the standard requirements:

Mortgage conduct: Proof of the most recent 12 months’ mortgage payments is required for all regulated applications.
Bank statements: Latest 3 months’ consecutive bank statements are required on all applications.
Self employment: The existing business must have been trading for a minimum of 1 year and the latest 1 year accounting information should be provided. We accept SA302s or a tax calculation, with a tax year overview from HMRC in lieu of accounts. This is at our underwriters discretion. We only accept accounts prepared by accountants with the following quali cations: ACA/FCA, CA,ACCA/ FCCA, AAPA/FAPA, CIMA, CIPFA.
Company directors: Where a company director owns 25% or more of the company shares they must be treated as self-employed.
Employment: A minimum of 6 months in current employment and 12 months continuous employment history is required for all regulated applicants. Income for employed applicants must be veri ed by means of the last three months’ payslips and /or bank statements / P60. Where guaranteed or regular bonuses form a substantial part of an applicant’s total income, please provide suf cient evidence to con rm thatthis is the case. For regular annual bonuses, a two year track record should be provided.
Assets & liability statements: Statement should be signed by applicant/guarantor or their accountant.
Schedule of works proposal form: Normally required where any form of refurbishment is to be completed.
Exemption or declarations: For second charge lending where the loan is not secured on an investment property then a exemption is required for all applicants. Exemption will be due to business purposes or high net worth, and an exemption certi cate signed by the applicant.
Second charge lending: 2nd charge lending on an advised basis only. For second charge lending where the loan is not secured on an investment property then an exemption is required for all applicants. All regulated cases to be advised. Exemption will be due to business purposes or high net worth. An exemption certi cate is required to be signed by the applicant.
Field agent: Field agent visit at BFS discretion. Standard on all loans over £500k

For non regulated retained interest cases Bridging Finance Solutions now only requires the following documents

  • Application form
  • Valuation report
  • Bank statements
  • Schedule of works (Light/Heavy Refurbishment) › AML Documentation

Please note, our underwriters reserve the right to ask for additional validation at their discretion.

Property

Minimum property value: No minimum. £50,000 at proposed exit.
Location: Mainland England, Wales and Scotland only.
Scotish applications will only be considered in Glasgow and Edinburgh postcodes only

Tenure

Freehold: Unacceptable for flats/maisonettes, heritable title flats are not acceptable in Scotland.
Leasehold: 75 years unexpired term after end date of the mortgage term.
Flying freehold: We can consider flying freeholds provided the percentage does not exceed 10% of the total area. The valuer must comment and con rm total percentage.
Commonhold: Not acceptable.
Flats/Maisonettes: Must be self-contained with private facilities and direct access to the highway via covered common parts.
Buildings insurance: Suitable buildings insurance should be in place at completion and will be a condition of the offer that the conveyancer must address. The sum assured should be index-linked. The interest of the lending company should be noted on the policy.
Social housing: We will not consider any property being purchased under any social housing schemes eg (Right to Buy, Shared Ownership, Key Worker etc). Nor will we consider remortgaging any property purchased under any such scheme where the original vendor retains any interest or where any pre-emption clause remains.

Unacceptable property types (if the construction is non-traditional contact us for acceptability)

  • Property designated defective under Part XVI Housing Act 1985, Housing (Scotland) Act 1987 or Pre-Cast Reinforced Concrete (PRC) property (irrespective of whether repaired under a licenced repair scheme).
  • Properties constructed with high-alumina cement, timber framed property with no brick skin or 100% steel or timber framed property.
  • Property where material environmental hazards are present.
  • Property where commercial usage exceeds 20%. The commercial element should not extend to light engineering, manufacturing, livestock, rearing or caring for domestic animals. “Home” of ce usage is acceptable however, such use should not include circumstances where clients are seen on the premises on a regular basis (eg dental surgery would not be acceptable).
  • Live/works units.
  • Freehold ats/maisonettes.
  • Any property deemed unsuitable security by the valuer.
  • Any property with agricultural tries.
  • Properties affected by japanese knotweed.
  • Properties affected by overriding interest.
  • Any property where there is ongoing movement/monitoring is required.
  • Mobile homes and houseboats.
  • Grade I (England & Wales) / Grade A or Grade B (Scotland) listed buildings.
  • Property where saleability may be adversely affected by local planning or by an unsatisfactory mining search.
  • Any property of Modern Method of Construction (MMC) eg a POD type construction where units are built off site, craned onto site andsecured and serviced connected etc, then externally clad.
  • Any property containing mundic concrete.
  • Land without planning permission.
  • Property with no residential element.

Restrictive covenants: We are unable to consider any property that may have a restricted occupancy clause within the planning permission, for example, it can only be occupied for a maximum of 11 months in any one year. Property with unrestricted occupancy can be considered provided our normal requirements are met. Similarly, property that can only be used for retirement or sheltered accommodation is unacceptable, as is any property where a planning restriction (eg agricultural restriction) effectively limits a property’s appeal on the open market.

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