Getting a bridging loan might feel like stepping into unfamiliar territory.
You might be wondering what checks lenders will make, what documents you’ll need, and whether your application will succeed. Perhaps you’re buying at auction and need quick funding, or you want to break out of a property chain.
Luckily bridging loan checks aren’t as complex as you might think.
While each lender has their own criteria, they’re mainly focused on two things: the property (or asset) being used as security, and how you plan to repay the loan.
In this guide, we’ll walk you through all the checks bridging loan companies make. You’ll learn what documents you need, how to prepare your application, and what lenders look for when assessing your case.
Understanding Bridging Loan Checks
Bridging loans fill a specific gap in property finance.
They’re short-term loans/mortgages secured against property or land. You can choose a term between 3 and 24 months.
You might need one to buy a property at auction, prevent a chain from breaking, or fund a renovation project before selling.
When you apply for a bridging loan, you’ll come across two main categories.
If you’re borrowing against a property you live in (or plan to live in), you’ll need a regulated bridging loan. These come with FCA protection and stricter checks, much like a standard (residential) mortgage.
For property investments, business purposes, or commercial buildings, you’ll need an unregulated bridging loan – these offer more flexibility but less regulatory protection.
The checks bridging companies make fall into three main areas.
They’ll assess the property or asset you’re offering as security
They’ll check your financial position
Finally, they’ll carry out legal checks to verify ID & ownership
Remember, different lenders have different requirements. Some focus mainly on the property value and your exit strategy, while others might want more detail about your circumstances and experience.
Property and Security Checks
The property or asset you’re offering as security sits at the heart of your bridging loan application. Lenders want to be sure it provides enough value to cover the loan, and they can use several ways to check this.
Most lenders will send a qualified RICS surveyor to assess your property.
They’ll look at its current market value and, in some cases, its potential forced sale value. For a £500,000 property in Ware, for example, a surveyor might value it at £500,000 for the open market but £400,000 for a quick sale.
You can secure a bridging loan against many types of property, and they don’t even need to be habitable!
Residential homes, commercial buildings, mixed-use properties, and even land can serve as security. Let’s say you own a shop with flats above in Bayswater- you could use the entire building as security, even if you only occupy part of it.
Loan-to-value (LTV) ratios usually range from 65% to 80% of the property’s value. So, if your property’s worth £600,000, you might be able to borrow between £390,000 and £480,000. Some lenders offer higher LTVs, but you’ll usually pay more in interest.
Before agreeing to lend, companies need proof of property ownership.
If you’re buying a property then this will involve checking the title for any restrictions and debts.
For second charge loans they will check the Land Registry and review your title deeds. For any existing mortgage secured against the property, they’ll need to contact the lender and request permission to register the second legal charge.
Let’s talk bridging loans!
Financial Status Checks
Unlike long-term mortgages, bridging lenders place less emphasis on your income, credit score and affordability.
They’re much more interested in your property’s value and how you will eventually repay them.
That said, they’ll still look into your financial background – just not as deeply as you might expect.
Credit checks vary by lender.
Most will run a full credit search, while a few offer ‘non-status’ loans where they don’t check your credit at all. Even with a less-than-perfect credit history, you could still get a bridging loan if your property has enough value and you have a solid plan to repay the money.
For business borrowers, lenders will check your company details at Companies House.
They’ll look at who owns and runs the business, and whether it’s trading normally. If you’re borrowing through a newly formed company, or SPV, they usually ask for personal guarantees from the directors.
Most bridging loans don’t need any monthly payments – instead, the interest gets added to the loan and you pay everything back when the loan ends.
Because of this, your income often matters less than with other types of lending. However, if you choose to make monthly interest payments, lenders will want to see proof you can afford them.
Additional checks for your exit strategy
This one can catch a few people out.
Where your exit strategy involves getting another loan, mortgage/commercial mortgage etc, then the bridging lender is likely to ask for some proof that this is actually possible!
You won’t need to show a full mortgage offer, normally an Agreement in Principle will suffice.
Non-Status Bridging Loans
You’ll sometimes hear the term ‘non-status bridging loans’.
These are particularly useful if you’d rather not go through detailed financial checks or if your circumstances make standard lending tricky.
With non-status lending, lenders won’t check your income or credit history.
They focus purely on your property’s value and your exit strategy. Even if you’ve had bankruptcy or credit problems in the past, you could still qualify – as long as the bankruptcy has been discharged.
The trade-off is that you will pay higher interest rates for this flexibility and the maximum LTV sits around 70%.
Lenders offset their increased risk by charging more. Still, if you need quick funding and have a solid exit plan, this could be your best option.
Non-status loans work well for:
- Property investors with complex income
- Recently self-employed people
- Those with past credit issues
- Anyone needing very quick funding
But remember to check all your options. If you have good income and credit, a standard bridging loan should cost less overall.
Read more: What is a Non-Status Bridging Loan?
Why would someone choose a non-status loan?
Well, the most obvious reason is that they don’t need to disclose their income or credit history. A big advantage if your credit report is a bit sketchy (or you have no income).
But another reason is that these loans can be arranged really fast.
When you apply, the lender only needs to check your LTV and exit plan before moving to the valuation stage. So property valuations can be requested the same day.
If that’s not fast enough for you we can find a lender that works with Automated Valuation Models (AVMs). For this you’ll need a LTV below 60-70%.
Now your bridging loan application is turbo-charged and can move to the legal (solicitor) stage the very same day. That’s fast finance.
The Exit Strategy
How you will pay back the loan matters more to bridging lenders than almost anything else.
After all, they want to know their money will come back to them at the end of the term.
Most borrowers plan to sell the property or refinance onto a long-term mortgage. If you’re planning to sell, lenders will want to see evidence the property will appeal to buyers. They might ask for local property prices, estate agent valuations, or even provisional interest from potential buyers.
If you’re planning to refinance, you’ll need to prove it’s possible.
Many borrowers get an agreement in principle from a mortgage broker before applying for their bridging loan. This shows they can switch to long-term finance when the time comes.
Other exit strategies might include:
- Money coming from a business sale
- An inheritance that’s going through probate
- Funds from another property sale
- Investment returns or bonus payments
Be open with your lender about any potential hiccups in your exit strategy. If house prices might drop or your refinance could take longer than expected, they’ll want to know. Good lenders will help you build in some flexibility just in case things don’t go exactly to plan.
Read more: Bridging loan exit strategies
Identity and Legal Checks
Every bridging lender must verify who you are and where you live – it’s part of UK law.
You’ll need to provide photo ID (like your passport or driving licence) and proof of your address, usually a recent utility bill or bank statement.
Money laundering checks form another key part of the process.
Lenders need to know where your deposit’s coming from and will ask for bank statements showing the money’s source. If it’s a gift from family or coming from business profits, you’ll need to prove this.
For property ownership checks, lenders look at Land Registry records.
If you’re buying a property, they’ll want to see the purchase contract. Their solicitors will check for any issues that might affect the loan, such as rights of way or planning restrictions.
Business borrowers face extra checks. If you’re using a limited company, the lender will look up your company records at Companies House. They’ll check who the directors and shareholders are, whether the company’s active, and if there are any charges against it.
How to Prepare for Bridging Loan Checks
Getting your paperwork in order before you apply can speed up your bridging loan approval significantly. The more prepared you are, the quicker things will move.
Start by gathering your ID documents and proof of address. Make sure they’re in date and show your current details. If you’ve moved within the last three years, lenders might want to see proof of your previous address.
For the property, pull together any documents you have. This might include the title deeds, existing mortgage statements, or planning permissions if you’re doing work. Having a survey or estate agent valuation ready can also help, even if the lender wants their own valuation later.
Think about your exit strategy evidence. If you’re planning to sell, get an estate agent’s letter showing likely sale prices. For refinancing, an agreement in principle from another lender strengthens your case.
It’s a good idea to keep copies of everything you submit. If a document’s missing or unclear, you can resend it straight away rather than hunting for it again.
Working with a Bridging Finance Broker
A broker can make your bridging loan application run smoother and faster. They know which lenders suit different situations and what each one looks for in applications.
Let’s say you need a 75% bridging loan quickly for an auction purchase. A broker will know which lenders can meet tight deadlines and what they’ll want to see.
Brokers specialise in cases that aren’t that straightforward.
Perhaps you’ve got a complex company structure or an unusual property, or you live overseas. They’ll know which lenders are comfortable with these scenarios and how to present your application in the best light.
Most importantly, brokers work with multiple lenders. Instead of approaching each one separately, your broker can find the right match first time.
Next Steps
Ready to move forward with your bridging loan?
Start by working out exactly how much you need to borrow and for how long. Write down your exit strategy – be specific about how and when you’ll repay the loan.
Gather your ID documents and property paperwork. If you’re buying a new property, get your purchase details together. For refinancing or property development, collect any relevant planning permissions or contracts.
Speak with a bridging finance broker early in the process, especially if you need quick funding or have unusual circumstances. They’ll help you understand your options and find the right lender for your situation.
FAQ
Not always. Many lenders focus more on your property’s value and exit strategy than your credit score. Some offer non-status loans with no credit checks.
Read more: Can you get a bridging loan with bad credit?
Most checks take 5-7 days, depending on the lender and complexity of your case. Property valuations often take the most time.
Yes. Lenders care more about your property and exit strategy than employment status. Some don’t check income at all.
Related reading: Can You Get a Bridging Loan Without a Job?
Most UK properties are acceptable, including residential, commercial, mixed-use properties, freehold, leasehold and land. Even properties needing renovation are OK.
The standard maximum LTV is 75% of the property value, but we have lenders that will go to 80% LTV.
Yes. You’ll need a solicitor to handle legal checks and property paperwork. In terms of fees, you will need to pay for your solicitor and the lenders solicitor.
Not all do. Many focus on property value and exit strategy instead of income.
Yes, most lenders allow early repayment, though some charge fees.
Regulated loans (for your home) have stricter checks under FCA rules. Unregulated loans (for investment) are more flexible.
You can’t ‘choose’ one or the other. Your situation when you apply will determine whether it’s regulated or unregulated.
Read more: Are bridging loans regulated by the FCA?
