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How we work
Step 01: Loan enquiry and indicative terms
Once the loan enquiry is received, indicative terms are provided with full transparency from the start.
- Indicative terms will outline your agreed rate and loan value, so you have the information upfront
Step 02: Decision in Principle (DIP) issued
This is where we do an in-depth analysis of the client and their requirements and provide a decision in principle.
- It is standard procedure to contact ‘Know Your Client’ searches (KYS’) before providing finance. Here, we take a look into your financial history to ensure that, should there be any potential issues, that we take look into finding a solution that works for you.
Here, we often require documentation such as:
- 3 Months personal bank statements
- 3 Months business bank statements (if applicable)
- Evidence of income (if loan is being serviced)
- Application form
- Statement of assets, liabilities, income & expenditure (SALIE)
- Property portfolio schedule
- Proof of residency
- Proof of ID
- This could be to clear any adverse credit you may have, for example.
- A Decision In Principle, often referred to as a ‘DIP’, is a formal contact between a yourself and a lender that indicates how much the lender is willing to lend to you.
Step 03: Valuation instructed
Valuers are instructed to visit the property or properties in question. This is what allows us to confirm the terms detailed on the Decision In Principle.
Step 04: Lawyers issue legal paperwork
The lawyers will do all the necessary paperwork for both us and the client to progress the case.
- Here, you can take a step back and relax, as we’ll do all the leg work for you
- We’ll be sure to keep you updated on the progress of your loan
I still have questions…
Need to Know Keywords
Property types: Most types of property considered in mainland England & Wales.
Unacceptable properties: Non-standard construction, farms, nightclubs, pubs, hotels, petrol stations, nursing homes & bare land.
Property tenure: Freehold and Long Leasehold (minimum of 60 years remaining)
Credit profile: No CCJs, mortgage arrears or defaults in the last 3 years. Any previous adverse information will be considered on an individual basis.
Limited companies: Directors and/or shareholder personal guarantee(s) and a debenture will be required in all cases.
Payment options: Interest will either be deducted from the initial advance, rolled up into the facility.
Upfront fees: No upfront processing fees will be charged. Prior to drawdown of the loan the only costs that the borrower will be responsible for are the valuation and legal fees.
Legal fees: The legal work will only commence on receipt of the legal fees. The borrower will be responsible for the lender’s legal fees as well as its own solicitor’s costs. (Please note: your client will need face to face representation with their solicitor.)
Exit route: Clearly defined exit route to be established for each case (i.e., sale or refinance)
Security: Unregulated First Charge only.
Borrower: Individuals, Partnerships & UK Limited Companies.
Loan amount: £100,000 to £1.5m (on a single asset). We will consider amounts up to £3.5m (on multiple assets)
Purpose: Property purchase, capital raising & re-financing, light & heavy refurbishment, or development finance secured against unregulated residential property.
Loan to value: Up to 70% on residential property – Open Market Value; 90% of purchase price if within 70% of OMV; Up to 60% on commercial property (vacant possession); 100% LTV with additional security.
Note: at present we do not offer regulated loans, mortgages or credit agreements, and are not regulated by the FCA.
Who is eligible for an MFS Bridging loan?
Our bridging loans are eligible for borrowers from a wide selection of property or financial backgrounds. Available for landlords, property developers and investors alike, our specialist bridging finance is flexible and ready to go.
Looking at the bigger picture, we taking into consideration your financial situation, your property/properties as well as your individual application.
That’s why, unlike other lenders, our simple bridging loan application assesses every enquiry on a case-by-case basis at our underwriter’s discretion. We tailor your experience in a highly unique way and make sure that we meet your bridging loan criteria, as well as our own.
Bridging Loan Applicant Criteria
- Self employed
- Complex structures
- All UK
- All EEA Nationals
- All countries except sanctioned states
- Serviced monthly
- Interest rolled up
- A combination of both
Will my credit history affect my application?
Of course not. We understand that everyone’s credit history is different. Every enquiry will receive a dedicated underwriter who will assess your application on its own individual merit.
By viewing all our applications on a case-by-case, we look at the whole picture. Our dedicated team of underwriters will also work with you to tailor our loan to meet your specific requirements.
Our flexible criteria mean we can provide short-term finance for complex or special circumstances, that high street bank or tick-box lenders often can’t. Whether that be:
- Meeting transaction deadlines
- Broken chains
- Missed mortgage
- Released capital
- Replacing existing finance
- Non-renewal from existing lender
- Business cash flow
- Short-term working capital
- Divorce settlements
- Annulment of bankruptcy
- Transferring from individual to company
- Tax, liabilities, IHT, CGT, VAT
- Discharging adverse credit
- Exiting IVAs
- Repairing CCJ
Our bridging loans cater to both individuals and businesses alike, including Limited, LLPs, SPVs and offshore companies.
In what situations can I use a Bridging Loan?
Our range of bridging products means that MFS bridging loans are available to suit a variety of situations:
- Buying a property at auction
- Looking to buy a new property before the sale of another
- Property investment opportunities
- Starting a new business venture
Bridging finance allows you to open the doors to new and exciting property opportunities.
Click here if you’re looking for more information regarding ‘what is a bridge loan?‘
Or for more in-deep details on how we can help, why not check out our case studies, blog or even download one of our reports from our Resource page.
An exit route is part of the bridging loan criteria that a lender will look at before approving a loan. It is simply the way you plan on repaying the loan at the end of your term. Having an exit route planned in advance helps our underwriters minimise the overall risk that could affect your bridging finance.
There are many ways you can repay your bridging loan:
- Selling the Asset
- Traditional; long-term mortgage such as a mortgage
- Short-term refinancing
- Specialist Buy-to-Let Mortgage