Non Status Bridging Loans

A non-status bridging loan is a short-term property loan underwritten on the asset and the deal instead of the creditworthiness of the applicant. The lender's decision rests on the value of the security, the loan to value (LTV) and the strength of the exit. That is why non-status bridging finance can fund borrowers who are not currently mortgageable, including applicants with adverse credit (bad credit) or a previous bankruptcy, and properties that are uninhabitable and so un-mortgageable in their current state.

Provided the transaction is short term and the exit is credible, a non-status lender will lend against the asset rather than the status of the individual. An applicant with adverse credit can then fund property flips, land acquisitions and planning gains, or raise funds against a property they already own.

What is a non-status bridging loan used for?

Non-status bridging funds transactions that mainstream lenders decline because of the borrower's status or the property's condition:

• Buying un-mortgageable or uninhabitable property
• Buying property with restrictive covenant or title issues
• Purchasing land, including pre-planning sites
• Funding a change of use requiring planning permission
• Acquiring property as part of a business transaction
• Buying property below market value
• Raising capital against an owned property, including to repay legal costs
• Applicants with adverse credit or a previous bankruptcy
• Refinancing quickly to exit an existing deal under time pressure

How much can I borrow? LTV on non-status bridging

Non-status bridging products reach as high as 90% loan-to-value with some lenders, though products at the highest LTV can be more expensive, so pricing varies by lender and LTV. How the limit is measured matters as much as the percentage, and on a purchase lenders measure it in one of two ways.

• Capped at the price: in our experience some lenders lend up to 90% of the purchase price and up to 90% of the valuation, capped at 90% of the price, so the loan never exceeds 90% of what you pay, however far below value you buy.
• Measured on value, uncapped on price: other lenders lend up to 85% of the open market value with no cap at the purchase price. On a genuine below-market-value (BMV) purchase, that can mean an advance well above 100% of the price with some lenders, without a deposit or additional security. Where the price is less than 75% of the value, for example, a borrower can be geared at 75% of value and still receive more than 100% of the price paid.

As a published example of a different formula, Precise Mortgages' bridging criteria (checked 29 September 2026, and subject to change) allow up to 90% of the purchase price or 75% of the open market value, whichever is lower, on a below market value purchase. Each lender sets its own rule, so the same deal can produce very different loans. These limits usually apply to the gross loan, including any interest and fees added to it, so the cash released on day one is lower.

Where there is no BMV discount, funding of 100% or more is still possible with some lenders by securing the loan against equity in the borrower's main residence or other buy-to-lets, a cross-charge structure. In every case the underwrite relies heavily on the valuation and the exit, and the value used is the lender's own valuation, often a 90-day or 180-day figure.

How non-status bridging valuations work: 90-day and 180-day values

Non-status bridging lenders usually lend against a 90-day or 180-day valuation rather than full market value. A 180-day valuation assumes the property must be marketed and sold within 180 days, and a 90-day valuation assumes a sale within 90 days. Both produce more conservative figures than open market value, because a forced sale window restricts the buyer pool, and the 90-day figure is the more conservative of the two.

Surveyors usually report the 90-day and 180-day figures alongside the market value. Where the gap between the 90-day and 180-day valuations is large, non-status lenders will often base lending on the lower 90-day figure. A small number of lenders lend on full market value, but this is uncommon on non-status products.

Local valuers can be used. Valuations are usually panelled to a local surveying team, and your broker will often have a choice of valuers, which gives access to surveyors with local knowledge of the property instead of a national firm sending a representative from a distance.

Serviced or deducted interest

Non-status bridging interest is either serviced monthly or deducted from the advance at the outset, and the choice decides whether income is assessed at all.

With serviced interest, the borrower pays interest each month and repays only the principal at the end of the term. Underwriting is enhanced for this repayment type, because the lender needs evidence of reliable income or cash flow to cover the interest payments. Interest does not accrue onto the loan, so servicing is usually the cheaper structure over the term for borrowers with good disposable income.

With deducted interest, the total interest for the full term is calculated upfront, with the interest deducted from the advance. As an illustration, on a £100,000 loan with £20,000 of term interest, the borrower receives £80,000 but owes £100,000. No monthly payments are made and no monthly affordability is assessed, which makes this the default structure for non-status borrowers who cannot evidence income. Whether unused deducted interest is refunded if the loan is repaid early varies by lender and product, so check the redemption terms before choosing a product.

How fast can a non-status bridging loan complete?

A non-status bridging loan can complete quickly where the exit is strong and the legal route is short. Two things determine whether a case can move fast.

The first is the strength of the exit. If the exit is a sale, the underwrite centres on the deal's profitability and the demand for the property, which the valuer checks. If the exit is a remortgage, underwriting goes deeper: credit status, income, experience, stress testing (on a buy-to-let remortgage, a rental stress test) and an asset and liability review all come into play, because the lender must believe the refinance will complete.

The second is the legal route. Local authority searches can take weeks with some councils, which may not fit an auction completion deadline. A lender that accepts a search indemnity policy instead of searches removes that delay, so on a speed-critical case the broker's job is to place the loan with a lender that will complete on indemnity.