Short term finance enables you and your business to take advantage of opportunities which require transactions to be completed quickly. The focus on this type of finance is speed. It’s about closing your deal as quickly as possible. If you have an investment opportunity that demands a rapid financial solution, then a bridging loan is for you.
A “non status” bridging loan from Pure Bridge can also help if you have negotiated a below market value opportunity, but your mortgage lender insists that you own the property for 6 months. Because we lend against the value of a property, and not the purchase price, it allows you to truly take advantage of these opportunities when they arise.
So, what does “Non Status” really mean?
When considering a “Non Status” loan, the principal focus is on the strength of the property asset being used as security, on a first or occasionally second charge basis. Therefore, of particular importance is:
- What type of property is it i.e will it be easy to achieve a sale or tenant if required?
- Where is it located: is it a popular location with strong local economy?
- The valuation: does it all make sense?
Since the loan is “Non Status”, there are no credit checks carried out on the applicant, nor are there any affordability criteria applied to the income of the borrower, in order to ascertain whether the loan repayments can be met.
It is for this reason that all fees and interest are deducted from the loan advance on the day of completion, thereby negating the risk of the borrower failing to pay the monthly interest payments.
It is worth noting that because the loan is “Non Status” it does not mean the borrower has bad credit; simply that if they did have CCJ’s or had been bankrupt, this would not stop them applying for the loan.