Are Non Status Bridging Loans Available?
Some years ago, it was not too difficult to obtain non-status borrowing but following the credit crunch fewer lenders were providing such finance with the Bank of England and regulators tightening up on how lenders should underwrite borrowing applications.
However, there are now many individuals including some business owners as well as their businesses who have now got an unsatisfactory credit rating with the credit reference agencies. This can make it more difficult for people in such a situation to obtain finance.
So, how easy is it to obtain the likes of a bridging loan if you have a bad credit history? Well, you may be surprised to read that there are numerous brokers and lenders who specialize in helping potential borrowers obtain non-status bridging loans.
It is unlikely that if you were to approach the high street banks and building societies that you would be welcomed with open arms. However, if you go on the Internet and type something like “non status bridging loans” into your browser’s search box you will be presented with numerous websites whose owners are offering to either help you source such finance or lend you the money subject to various criteria. So, some applicants who have the likes of defaults and county court judgments (ccjs) registered against them may still be considered for such finance.
With non status bridging loans the lender will no doubt require suitable security such as a first or second charge over bricks and mortar with an adequate security margin so that, should you default on the bridging loan, they can always repossess the property to clear their borrowing.
It is also possible that the interest rate you will be charged on a non status bridging loan is greater than a normal bridging loan and this should be part of your due diligence when researching this sector of the lending market.