No Valuation Bridging Loans
Summary of No Valuation Bridging
No Valuation Bridging:
Faster processing.
Lower upfront costs.
Uses AVMs or skips valuation.
Traditional Bridging Loans:
Involves a physical property valuation.
Longer processing times.
Higher upfront costs due to valuation fees.
No Valuation Bridging Explained
No valuation bridging loans, AVM’s and desktop valuation bridging loans, are types of bridging finance that do not require a property valuation during the application process.
Usually, when applying for a bridging loan, the lender mandates an independent property valuation to confirm its worth which can be costly. However, with a no valuation bridging finance product , this valuation step is either skipped or greatly simplified, streamlining the approval process and reducing upfront costs to the borrower. No valuation products are offered on regulated and unregulated applications.
What is a bridging loan?
Bridge loans, also known as bridging finance or interim financing, provide borrowers with short-term funding to address gaps when immediate funds are needed but cannot be secured within the timeframe required. For example, a bridge loan can help someone purchase a new home while waiting for their current property to sell or when buying a BTL property at auction.
For a detailed bridging loan guide follow the links below:
How Does No Valuation Bridging Work?
No valuation bridging loans can be completed within 48 hours to 10 working days. These loans offer up to 85% LTV (loan-to-value) with rates as low as 0.55% for larger transactions. The absence of a valuation speeds up the credit and underwriting process, making it an attractive option for those needing quick access to finance, completing a home purchase, or refinancing.
Pros and Cons of No Valuation Bridging
Pros:
Faster access to funds.
Lower upfront costs.
Simplified application process.
Cons:
Limited to certain property types and borrowers.
Potentially higher interest rates due to the increased risk for lenders
Is No Valuation Bridging Right for You?
No valuation bridging might be right for you if you need quick access to finance and can benefit from the lower upfront costs. However, ensure that your property and financial profile meet the eligibility criteria set by lenders. Speaking to a broker or a lender directly will help you make this decision and allow you to discuss any uncertainties you have about the application.
Best Tips for No Valuation Bridging
Ensure your property and financial profile meet the lender's criteria prior to application.
Compare different no valuation bridging lenders to find the best rates and terms.
Use an expert who specialises in bridging finance to ensure you are getting the best possible deal and an offer which matches your circumstances.
Be aware of any potential higher interest rates and balance them against the benefits of faster processing and lower upfront costs.
Avoiding Common Mistakes with No Valuation Bridging
Ensure you understand all terms and conditions before applying.
Avoid lenders and brokers with hidden upfront fees, unfavourable terms.
Make sure you are applying to a well capitalised lender who has the funds to complete.
Make sure you are eligible for the loan and meet the lenders full criteria to avoid cancellation costs or prevent delays in processing.
How to Apply
Contact Us Apply directly with us, and we will discuss the pros and cons of no valuation bridging.
Receive a Quote Get a personalised no valuation or desktop valuation bridging loan quote by submitting your case for a no-obligation quote.
Guidance: We guide you through the application process, offering market-leading rates from our investors or the bridging loan market.
Processing: We handle the underwriting, legal, and valuation procedures until loan completion.
Comparing Bridging Lenders
To find the best no valuation bridging loan, compare lenders based on interest rates, loan terms, fees, and their reputation in the market. This comparison will help you select a lender that meets your financial needs and offers favorable terms. We lend directly to our clients and also have access to the full market through our brokerage to ensure you get the best possible deal based on your circumstances.
Key Characteristics of No Valuation Bridging Loans
Speed: Without the need for a valuation, the process is faster, providing quicker access to funds.
Lower Costs: Skipping the valuation saves the borrower the valuation fee, which can amount to thousands of pounds.
Automated Valuation Models (AVMs): Some lenders use AVMs, also known as online valuation bridging loans, which estimate the property's value using statistical models and data analysis without a physical inspection.
Eligibility: These loans are often available for certain types of properties and borrowers with strong credit profiles. They might be limited to specific geographic areas or properties below a certain value threshold. See if you are eligible by applying using our online form to get a same day response.
Our Team's Track Record.
Over the past 5 years, our team has successfully transacted approximately £500 million in bridging and development finance underwriting. Additionally, we have transacted on around £100 million in private equity investments and provided specialist finance advisory services amounting to approximately £40 million.
Whether you need bridging finance for residential investments, HMOs, refurbishments, or development exits, or if you require development finance for housing or commercial projects, our expertise ensures we connect you with the most suitable lender.
Our extensive track record underscores our proficiency in diverse financial landscapes, ensuring we meet your unique requirements and provide optimal financing solutions.