Short Term Finance Bridging Loans FAQs
Non Regulated Bridging Loan FAQs
The information on this page relates only to unregulated loans and mortgages.
If you are looking to borrow against a property by way of a first charge where you or any family member will use or intend to use at least 40% or more of the property in connection with a dwelling, this will be a contract regulated by the FSA, as such, you should visit our regulated bridging loan section.
Frequently asked questions about bridging loans
1. How do I get a fast bridging loan?
2. What happens once I've applied for a bridging loan?
3. What percentage of the value of the property do you lend?
5. How soon can I have the bridging loan money?
6. What are the unregulated bridging loan rates and charges?
7. What are the penalties if I pay back the loan back early?
8. What security is required for a bridging loan?
9. How can you lend money so quickly?
10. What are the other costs?
11. Are you regulated by the FSA?
1. How do I get a fast bridging loan?
To arrange a fast bridging loan, we will need the following information to consider the proposal:
- Your name and address
- Address of the property being offered as security
- The purchase price or estimated value and a description of the property
- Your solicitor’s name and contact details
- Bridging loan amount you require
- Proposed repayment method
- For developments we will need: Site plans & elevations, budget costs, feasibility study, planning consent.
2. What happens once I have applied for a bridging loan?
We’ll process your application for a bridging loan quickly, and give you a decision in principle over the phone and in writing. Once we’ve agreed to process your application, we’ll need a certified copy of your passport and a utility bill (from within the last 3 months) plus the valuation fee. For details of the valuation fee please see our tariff of charges.
3. How much can I borrow?
We can lend from £26,000 to £3.5m, depending on the value of the property offered as security.
4. What percentage of the value of the property do you lend?
We generally lend up to 65% of the mortgage value of the property, but can lend up to 75% in some cases.
5. How soon can I have the bridging loan money?
Fast. We’ve been known to complete loans on the same day as the enquiry.
6.What are the unregulated bridging loan rates and charges?
A rate of 0.99% will be chargeable on the amount borrowed every 30 days. However rates are subject to change and will increase or decrease in line with movements in 3m LIBOR(The London Inter Bank Offered Rate For Three Month Sterling Deposit. Rates will be adjusted on each 30 day anniversary of the facility. The overall cost for comparison is 12.4% APR. A £200 admin fee, will be payable on completion of the bridging loan.
7. What are the penalties if I pay back the bridging loan more quickly than agreed?
There are no early repayment charges.
8. What security is required for a bridging loan?
The bridging loan is usually secured by way of a first charge over the property. If the borrower is a company, we will need a debenture and personal guarantees.
9. How can you lend money so quickly?
Commercial Acceptances is a principal finance lender - it’s our money to lend on a commercial basis.
10. What are the other costs?
See Tariff of Charges
11. Are you regulated by the FSA?
Yes, we are authorised and regulated by the FSA (Financial Service Authority), which means we can deal with regulated mortgage contracts. Please be aware that non regulated bridging loans are not regulated by the Financial Services Authority.
