Bridging Loan Lending Criteria
When applying for bridging finance, it is important to understand the lending criteria you will need to meet in order to qualify for this type of short-term borrowing. Bridging loan lending criteria vary between lenders, but there are some general qualifications that will make it much more likely that you will be able to access the borrowing you need.
What are the lending criteria for bridging loans?
To qualify for a bridging loan you will need:
- A property with enough free equity to secure the loan against
- An exit strategy i.e. a plan for repaying the loan
- An acceptable reason for requiring the loan (different lenders will have different criteria for what is an acceptable reason)
You may find it easier to access bridging finance if you have the following:
- A regular income sufficient to cover the interest on the loan
- A good credit rating
However, it can still be possible to get a bridging loan with no income or with a bad credit history.
How bridging loan lending criteria affect the cost of bridging finance
Although it is possible to get a bridging loan as long as you have a property to secure it against and a realistic exit strategy, you will normally have more choice of lenders and deals if you have a regular income and a good credit history.
This means you are likely to be able to get lower fees and interest rates the wider range of lending criteria you are able to meet. It is strongly recommended to discuss your borrowing needs and personal situation with a loan broker, as they will be able to advise you on how to get the best deals to suit you.
Compare bridging loan lending criteria from all the leading lenders
Our free bridging loan calculator allows you to quickly and effectively find and compare bridging loan deals from all of the top lenders across the market. This makes it much simpler to find a lender who can offer you the money you need and whose lending criteria matches your personal situation.
Looking for advice on bridging loan lending criteria? Get in touch with our friendly expert team of loan brokers using the contact form on the right or by calling 0117 313 6058.