Non status bridging loans have always been written in the UK regardless of previous credit history. The main criteria has always been the loan to value required meeting bridging lenders current criteria. Is this still the case today?
Bridging finance is typically aligned at or just below the prevailing long term mortgage market because that is one of the main repayment options. With mortgages much more difficult to access, bridging lenders this year have been much more focused on repayment. If the lender believes your credit profile isn't good enough to arrange a mortgage then a bridging application is unlikely to succeed.
Where loan to values are low with plenty of equity in the property offered as security then a bridging loan is still pretty easy to arrange. However, if the bridging loan requirement is anywhere near a lenders maximimum, then the focus will turn to the borrowers ability to pay interest on a monthly basis should things go wrong and the loan period needs to be extended.
Our conclusion is that truly non status bridging loans have pretty much disappeared and things will remain that way until mortgage lending criteria are eased.
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