A1 credit rating is required for bridging loans from banks.
Santander, formerly the Abbey National.
Only existing customers of this international banking chain can apply for a Santander bridging loan. You also need to have a mortgage with them if you require what is brand as a short term additional loan.
Halifax was formerly a building society.
Unfortunately, no matter what you have read on some 'brokers' websites, Halifax bridging loans are not existent. They do not offer traditional bridge finance. Loans are between 1 and 7 year plans.
Lloyds bank offers on short term finance.
Lloyds do actually advertise their Lloyds bridging loan service on their website, however, it is hidden away behind every other form of borrowing they offer. They prefer longer term methods.
Hong Kong & Shanghai Banking Corporation.
HSBC are one of the rare banks that actually, actively, market the HSBC bridging loan service. However, there are certain stipulations like, home purchase only & tieing you into their mortgages.
Or call: 0845 475 1814
Banks do not accept bad credit applications BUT WE DO!
The Trustee Savings Bank has split from Lloyds. They currently do not offer a high value, short term option for property purchases or to bridge the gap. There is no such thing as a TSB bridging loan.
The National Westminster. Part of the RBS group. are another High Street bank that no longer offer short term funding. They do have standard personal loans up to £25,000 which can be topped up in the future.
The Royal Bank of Scotland are also another bank that doesn't actually offer bridging finance anymore. Borrow up to 25k then get a further loan in the future. There are no short term borrowing options with this High Street banking chain.
So why don't High Street lenders offer bridging anymore?
From around 2007 until 2013 most of the Europe and the United States suffered from what was elequently named the 'credit crunch', which in all effect turned out to be a full blown recession. Governments refused to use the 'R' word even though hundreds of millions through the whole world was used bailing banks out of the holes they had dug for themselves.
During this recession, many household named retailers went bust. Well known shops like Woolworths, Oddbins the off licence chain, Focus D.I.Y, T.J. Hughes, JJB Sports, Comet and HMV were all victims of the massive downturn in consumer spending due to the credit crunch. None of the aforementioned businesses have resurfaced since.
Call on our local rate 0845 475 1814 from a land line or call 0203 287 7169 from your mobile or request a call back by using the quick contact form on this page, if you would like to see if we can offer you a bridging loan or get in the touch down the Interweb by pressing the button below.
So how did this affect the Banks?
Credit crunch. A very large mortgages provider in the USA had been providing mortgages at 100% borrowing. The property market started to decline, borrowers ended up in negative equity, the provider couldn't service the finance they provided and went bankrupt. This had a drastic affect on all lenders. They initially stopped all borrowing unless the borrower had an A1 credit history. People that laready had lines of credit and started to default on repayments where immediately repossessed. Business reliant on lines of credit started to fail, and jobs where lossed en masse. The U.S economy started to fail.
This caused panic in Europe and with lenders through the continent included the U.K. Similar lending scenarios had occured throughout the country. People had been given high interest low deposit mortgages and where using using credit cards to survive (robbing Peter to pay Paul), had their lines of credit taken away.
Call on our local rate 0845 475 1814 from a land line or call 0203 287 7169 from your mobile or request a call back by using the quick contact form on this page, if you would like to see if we can offer you a bridging loan or you can quickly and easily use the form to contact by hitting the button below.
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UK financial crisis
Through the panic and financial mess in America, of which many banks and borrowing institutes had significant ties in the UK and Europe, the credit crunch struck this side of the Atlantic.
Lines of credit to higher risk borrowers and credit cards where redacted. Ten's of thousands of people who where living simply on credit cards, then paying off at the end of the month, every month where left high and dry.
The people with money started to withdraw all their investments.
The clampdown on credit meant scores of property repossessions every week throughout the whole country. With their being no actual money around combined with no credit facilties available, consumer spending ground to a halt. Businesses failed in huge numbers. Jobs where lost and the recession ensued. The whole of the private sector was affect, from local tradesmen, through to small to medium enterprises and national chains.
We literally saw a well known brand go to the wall everyday.
The banks bailout
The financial crisis ultimately hit the banks. Billions of pounds worth of credit were effectively wiped out through IVA's and bankruptcy.
Properties were repossessed but with the decline in property values sold on at a loss. The banks were not vulnerable to the repossession and some actually ran out of money and where under the threat of going out of business themselves.
If the banks ran out of money and hit the wall, all their savers would lose their money too.
So not only was there no money left in the economy, because it had been built on credit, people that had money saved, would lose their savings too.
The UK Government had to step in.
They earmarked hundreds of millions of pounds from the treasury to keep several of the larger banks alive in return for a share in ownership.
The banks were saved, which meant British citizens saving were safe but it came at a cost. As part of the bailout plan, new, tougher and tighter borrowing restrictions were enforced as brand new legislation.
Restrictions on borrowing
In an attempt to safeguard the bank's future's, and with the power the Government had in banking decisions, tough and stringent guidelines, rules and legislation were brought into all forms of residential borrowing.
One hundred percent mortgages where no longer available through the High Street lenders, The knock on affect of this is there is now a whole generation that are unlikely to own their own home.
High risk borrowing was also cracked down on. So people with even a slightly adverse, recent, credit history are unable to borrow from a registered bank.
Bridging loans, once a staple of most property transactions being used to bridge that gap between a house purchase and home sale were deemed high risk.
Although not completely outlawed, the amount of paperwork that would accompany short term funding, meant it just wasn't worth the banks resources. Banks no longer offer bridging. Contact us for your bridging loan needs.