1. About You (The Borrower)
As mentioned in our important information, we conduct an initial basic fact-find to understand your financial circumstances. Standard anti-money laundering (AML) checks are also a legal requirement.
Have ready:
- Proof of Identity: A valid passport or photocard driving licence for all applicants.
- Proof of Address: Usually two recent items (e.g., a utility bill, bank statement, or council tax bill dated within the last 3 months).
- Bank Statements: Typically the last 3 months of personal or business bank statements.
2. The Security (The Property)
Since bridging loans are secured against property or land, the lender needs details about the asset used as collateral.
Have ready:
- Full Address(es): Of the property you are offering as security.
- Estimated Value: Your current estimate of what the property is worth. Note: A formal independent valuation will likely be required later, which we will arrange.
- Current Mortgage Details (if applicable): If you already have a mortgage on the property, you will need a recent mortgage statement and an idea of the redemption figure (how much is left to pay off).
3. The Exit Strategy (Crucial)
This is perhaps the most critical part of a bridging loan application. As our regulatory guidance states, a clear and achievable exit strategy is essential. The lender needs to know exactly how you plan to repay the lump sum at the end of the short term.
Have ready evidence of your plan:
- If selling the property: Evidence it is on the market (e.g., estate agent link) or a solid marketing plan.
- If refinancing (moving to a standard mortgage): An Agreement in Principle (AIP) from a long-term lender indicates that refinancing is a realistic option.
- If using other funds: Evidence of pending cash injections (e.g., sale of a business or another asset).
4. The Purpose (Why you need the funds)
Lenders need to understand the transaction to assess the risk.
Have ready:
- Purchase Details: If buying a new property, details of the property and the agreed purchase price.
- Auction Details: If buying at auction, the lot number and auction house details.
- Schedule of Works: If the loan is for property refurbishment, a breakdown of the planned works and estimated costs is highly beneficial.
Need help gathering these?
Do not worry if you do not have everything perfectly aligned right this second. Part of the CHFinance service is helping you navigate this paperwork. Our CeMAP qualified advisors will guide you through exactly what is needed for your specific scenario.
The first step is finding out your borrowing potential.
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