Non-status bridging loans offer quick property finance that focuses on your asset’s value rather than your personal income or credit history.
These short-term secured loans generally run from 3-12 months and suit property investors, developers, and buyers who need fast access to funds without the usual income verification.
How Non-Status Bridging Loans Work
Non-status loans are a bit riskier for lenders, so the loan to values on offer are slightly lower than for a status loan.
They normally go up to 70% LTV, rather than 80%.
Loan amounts usually start at £150,000, with no standard upper limit. As normal, the property acts as security, protecting the lender’s interests while providing you with faster access to funds.
Rather than basing decisions on income multiples or credit scores, lenders assess the property’s current market value and potential. They still want to see a clear exit strategy – either selling the property or refinancing.
Interest will normally be retained by the lender, reducing your initial payout.
Read more: A Guide to Bridging Loans
Loan-to-Value Ratios Explained
The loan-to-value (LTV) ratio shows how much you can borrow compared to your property’s value. Non-status loans are available up to 70% LTV.
For a property valued at £400,000:
- At 50% LTV: borrow up to £200,000
- At 65% LTV: borrow up to £260,000
- At 70% LTV: borrow up to £280,000
For second charge bridging loans, the LTV will include the main mortgage.
Read more: What does loan to value mean?
Who Uses These Loans?
Property developers often use non-status bridging when they need to move quickly on opportunities.
Business owners and self-employed professionals find them helpful when their income structure makes traditional borrowing challenging. Foreign nationals and expats buying UK property benefit from these loans when their overseas income doesn’t meet standard UK lending requirements.
Property investors use these loans to add to their portfolios, especially when quick completion is essential.
Even those with adverse credit history will qualify, provided they have sufficient property equity and a viable exit plan.
Non-status loans are normally approved very quickly, the lender just needs a valuation and to review your repayment strategy. So if you need funds urgently, these ‘no questions asked’ loans can really help.
Get access to expert brokers and specialist bridging lenders
Common Uses
Auction purchases are one of the most popular reasons. When buying at auction, you must complete within 28 days – far quicker than traditional mortgages allow. Non-status bridging provides the speed needed to secure these often below-market opportunities.
Read more: How to finance an auction property purchase
Property refurbishment projects suit these loans well. You might acquire a property needing significant work, use the loan for both purchase and improvements, then either sell at a profit or refinance once complete. Many developers use this approach to maximise returns on their investments.
Read more: What can a bridging loan be used for?
Property chain breaks present another common scenario. When your property sale takes longer than expected but you don’t want to lose your next purchase, non-status bridging can bridge the gap until your sale completes.
Read more: How To Use Bridging Finance To Break A Property Chain
Eligibility
Pretty much anyone over the age of 18 is eligible!
The biggest restriction is the loan to value cap of 70%. Remember this is 70% of what the lender determines the value to be, which may differ to your opinion!
There are no income checks; so any employment (or unemployment) status is OK.
There are no credit checks; so any credit issues will not cause a problem.
As long as you have the 30% cash deposit, and a suitable property, you should be eligible.
Application Process
The process moves much faster than a mortgage application, and quicker than a standard bridge loan.
After the initial enquiry and assessment, lenders arrange a property valuation. Once they’re satisfied with the asset’s value and your exit strategy, legal work begins to secure the loan.
Non-status loans below 70% LTV can often be processed in one day. Your loan application is assessed and then an AMV valuation is undertaken. Within a few hours your case can go to the solicitors for the legal work to begin.
Planning Your Exit
Your exit strategy remains fundamental to the loan’s success.
Most borrowers either sell the property or refinance to a long-term mortgage. For development projects, selling completed units provides a clear exit route, but you must ensure projected profits adequately cover the loan repayment, including all interest and fees.
The exit strategy needs careful planning and documentation.
Lenders want evidence that your plans are realistic and achievable within the loan term. This might include local market analysis, comparable property sales, or an agreement in principle for refinancing.
Read more: Successful strategies for repaying a bridging loan
Finding the Right Lender
Most non-status bridging lenders work exclusively through brokers and some of them can be quite hard to find.
This arrangement benefits borrowers as brokers can access multiple lenders, matching your specific circumstances with the most suitable options. They understand each lender’s criteria and preferences, often securing better terms than direct applications.
Working with an experienced broker can save time and money while increasing your chances of approval. They’ll help structure your application and ensure your exit strategy meets lender requirements.
Making Your Decision
While non-status bridging loans provide valuable solutions for many property transactions, they require careful consideration.
These are high interest loans. This higher cost compared to other finance options means you need a clear plan for using and repaying the loan. Understanding all costs, including arrangement fees, valuation fees, and legal expenses, helps you make good decisions.
For professional advice tailored to your situation, speaking with an independent mortgage broker can help you understand your options and find the most suitable lender for your circumstances.
Frequently Asked Questions
A non-status bridging loan is a short-term property loan where approval depends on the property’s value rather than your income or credit history. These loans typically last 3-12 months and require property as security. The lender does not require proof of income and will not check your credit history.
Due to the increased risk, most lenders offer up to 70% of the property’s value. Minimum loans typically start at £150,000, with no standard upper limit.
No, these loans focus on the property’s value and your exit strategy rather than income verification. However, you’ll need to clearly demonstrate how you plan to repay the loan.
Read more: Can You Get a Bridging Loan Without Regular Income?
Yes. Non-status loans don’t require any credit checks. So defaults, missed payments or CCJs can’t affect your application.
Read more: Can you get a bridging loan with bad credit?
These loans typically complete within 5-10 working days, significantly faster than traditional mortgages.
Because there are no income or credit checks the processing time is less than a standard bridge loan.
Read more: How quickly can you get a bridging loan?
Yes, many lenders accept applications from foreign nationals buying UK property, though additional checks may apply.
Yes, you will need a solicitor to review the loan documentation and approve the legal charges. Bridging loan borrowers pay the fees for their own solicitor and the lenders.
Read more: Do I Need a Solicitor for a Bridging Loan?
