Non status bridging loans not take the status of the borrower into account, so credit history or details of income are not as relevant. It is not the same as sub-prime or “self-cert” lending, where adverse credit is considered or the borrower is free to state their own income without proving its authenticity. A genuine non status lender will not require any confirmation on the borrower’s financial background because it doesn’t matter. The loan in non status cases is secured against the borrower’s property and therefore that security negates the need for financial assessment. In addition to this some funders are able to take an associated 2nd charge over an additional property if necessary. Many lenders in this sector are, like Masthaven, regulated by the Financial Services Authority.
Borrowers who require commercial finance but have a poor credit history, or are unwilling to provide proof of income or business accounts may find non status bridging loans a good solution.
What type of security is required?
Non status bridging loans are secured against the value of the property used as security. The value of the property will need to support the value of the loan.