Property finance in the commercial world differs massively from property finance in the usual residential homeowner world.
There, your credit profile is everything.
However, in short term property lending, non status bridging loans, commonly referred to as bad credit bridging loans, are commonplace. That is because the lender is concerned only with the asset (house or land) and not the individual borrowing the money.
In fact, the bridging finance industry was built on such structures and many, many lenders made lots of money lending to people with adverse credit. The borrowers in turn also made a lot of money so it was a fantastic situation for all parties.
But what about development finance?
Up until recently, development finance didn’t offer the same incentive and borrowers had to have a pretty perfect credit history to apply.
We had one situation recently where the borrower had made an application to his local authority for planning permission to convert an office block into 82 apartments.
7 different lenders declined his application because he had poor credit.
We took a look, realised his credit problems were long standing and he had a good source of income coming in and decided to take a chance.
12 months after the loan was paid out, he paid us back on time and since then, we have completed another 3 projects with this borrower.
If you would like to work with us and borrow money for your next property development, take a look at how simple our process is here and to find out a little more about who we are, visit our about us page.