What Are Non-Status Bridging Loans? The Fast-Track Finance Solution Explained!
When you need quick finance, but traditional lenders won’t approve your application, a non-status bridging loan could be the answer. But what exactly is a non-status bridging loan, and how does it differ from a standard bridging loan? Let’s break it down in simple terms so you can make the right decision for your financial needs.
What Does ‘Non-Status’ Mean?
The term ‘non-status’ means that the lender does not require full proof of income, credit history, or affordability checks in the same way a traditional lender would. Unlike high-street banks that scrutinise your financial background, non-status lenders focus mainly on the value of the property being used as security for the loan.
This makes non-status bridging loans particularly useful for people who:
- Have bad credit or a history of missed payments
- Are self-employed or don’t have traditional proof of income
- Need funding fast without lengthy application processes
- Have had applications rejected by mainstream lenders
- Need short-term finance to bridge a funding gap
- Want to purchase auction properties quickly
- Have a unique or complex financial situation
How Do Non-Status Bridging Loans Differ from Standard Bridging Loans?
A standard bridging loan still requires some level of financial assessment. Lenders will usually ask for income verification, a credit check, and an exit strategy (how you’ll repay the loan). In contrast, non-status bridging loans remove many of these barriers.
Here’s a quick comparison:
| Feature | Standard Bridging Loan | Non-Status Bridging Loan |
| Credit Check | Required | Not always required |
| Income Proof | Required | Not required |
| Approval Time | 2-4 weeks | As little as 24-48 hours |
| Borrower Profile | Strict criteria | Flexible approval |
| Interest Rates | Lower | Higher |
| Security Focus | Income & Credit | Property Value-Based |
What Are the Costs Involved?
Because non-status bridging loans come with more risk for the lender, they tend to be more expensive than standard bridging loans. Here are some costs to consider:
- Higher Interest Rates – Expect to pay anywhere from 0.85% to 2% per month, depending on the lender and loan terms. In contrast, standard bridging loans typically have lower rates, ranging from 0.45% to 1% per month due to stricter lending criteria.
- Lender Arrangement Fees – Typically around 1-2% of the loan amount, whereas standard bridging loans might have fees closer to 0.5-2%.
- Exit Fees – Some lenders charge an exit fee when repaying the loan early, usually around 1% of the loan balance, though some lenders may waive this for longer-term deals.
- Legal & Valuation Costs – You may need to cover legal fees and a property valuation before approval. This can range from £500 to £2,000, depending on property type and location.
- Broker Fees – Some deals require a broker fee, which varies based on the complexity of the loan. A non-status bridging loan typically involves more intricate arrangements, leading to slightly higher broker fees of 1-2%, whereas standard bridging loan broker fees might be lower.
Despite the higher costs, non-status bridging loans provide a fast and flexible solution when you need urgent finance, especially when mainstream lenders are not an option.
What Are the Common Uses for a Non-Status Bridging Loan?
- Property Development – Finance refurbishments or conversions without proving affordability.
- Auction Purchases – Secure a property fast without standard mortgage delays.
- Business Cash Flow – Use short-term funding to cover expenses while waiting for payments.
- Debt Consolidation – Manage multiple outstanding debts with a short-term solution.
- Quick Chain Breaks – Prevent property sales from falling through due to delays.
Is a Non-Status Bridging Loan Right for You?
If you’ve struggled to get finance due to bad credit, self-employment, or complex financial circumstances, a non-status bridging loan can be a lifeline. Whether you need funds for property investment, development, or urgent business cash flow, these loans offer a quick, hassle-free alternative to traditional borrowing.
Pros and Cons of Non-Status Bridging Loans
Pros:
✅ Fast approval process – Funds available in days, not weeks.
✅ No credit checks or proof of income required.
✅ More flexible criteria than high-street lenders.
✅ Suitable for property purchases, investments, or business use.
Cons:
❌ Higher interest rates than standard loans.
❌ Short-term finance – Must have a clear exit strategy.
❌ Additional costs such as lender and legal fees.
Frequently Asked Questions (FAQ)
1. How quickly can I get a non-status bridging loan?
Non-status bridging loans can be approved in as little as 24-48 hours, with funds typically released within 5-7 days, depending on the lender and legal process.
2. Do I need to provide proof of income?
No, non-status bridging loans do not require proof of income or affordability checks. Lenders focus on the value of the security property instead.
3. Can I get a non-status bridging loan with bad credit?
Yes! Unlike traditional loans, non-status bridging lenders do not rely on credit scores, making them an ideal option for borrowers with poor credit histories.
4. What types of properties can be used as security?
Most lenders accept residential, commercial, mixed-use, and land as security. Even properties in need of refurbishment may qualify.
5. What happens if I can’t repay the loan on time?
Non-status bridging loans are short-term solutions, so you should have a clear exit strategy in place. If repayment is delayed, penalties and extra interest may apply. Speak to your lender or broker about refinancing options if needed.
Get Expert Advice Today!
At Sunrise Commercial Finance, we specialise in tailored bridging loan solutions to suit your needs. Whether you need fast finance or have been rejected elsewhere, we can help!
🔗 Apply Now or call us today for a free consultation!
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