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Privacy Policy

Seek Finance respects your privacy and is committed to protecting your personal data. This privacy notice will inform you as to how we look after your personal data when you visit our website (regardless of where you visit it from) and tell you about your privacy rights and how the law protects you.

1. Important information and who we are

Purpose of this privacy notice

This privacy notice aims to give you information on how Seek Finance collects and processes your personal data through your use of this website, including any data you may provide through this website when you sign up to our newsletter, use our services or take part in a competition.

This website is not intended for children and we do not knowingly collect data relating to children.

It is important that you read this privacy notice together with any other privacy notice or fair processing notice we may provide on specific occasions when we are collecting or processing personal data about you so that you are fully aware of how and why we are using your data. This privacy notice supplements the other notices and is not intended to override them.

Controller

Seek Finance is the controller and responsible for your personal data (referred to as Seek Finance, “we”, “us” or “our” in this privacy notice).

We have appointed a data protection officer (DPO) who is responsible for overseeing questions in relation to this privacy notice. If you have any questions about this privacy notice, including any requests to exercise your legal rights, please contact the DPO using the details set out below.

Contact details

Full name of legal entity: Seek Finance

Email address of DPO: applications@Seek Finance.com

You have the right to make a complaint at any time to the Isle of Man Information Commissioner’s Office https://www.inforights.im/contact-us (ICO), the IOM supervisory authority for data protection issues. We would, however, appreciate the chance to deal with your concerns before you approach the ICO so please contact us in the first instance.

Changes to the privacy notice and your duty to inform us of changes

This version was last updated on 2nd May 2018

The data protection law in the IOM will change on 25 May 2018. Although this privacy notice sets out most of your rights under the new laws, we may not yet be able to respond to some of your requests (for example, a request for the transfer of your personal data) until May 2018 as we are still working towards getting our systems ready for some of these changes.

It is important that the personal data we hold about you is accurate and current. Please keep us informed if your personal data changes during your relationship with us.

2. The data we collect about you

Personal data, or personal information, means any information about an individual from which that person can be identified. It does not include data where the identity has been removed (anonymous data).

We may collect, use, store and transfer different kinds of personal data about you which we have grouped together follows:

– Identity Data includes first name, maiden name, last name, username or similar identifier, marital status, title, date of birth and gender.

– Contact Data includes address, email address and telephone numbers.

– Technical Data includes internet protocol (IP) address, your login data, browser type and version, time zone setting and location, browser plug-in types and versions, operating system and platform and other technology on the devices you use to access this website.

– Profile Data includes your feedback and survey responses.

– Usage Data includes information about how you use our website, products and services.

– Marketing and Communications Data includes your preferences in receiving marketing from us and our third parties and your communication preferences.

We also collect, use and share Aggregated Data such as statistical or demographic data for any purpose. Aggregated Data may be derived from your personal data but is not considered personal data in law as this data does not directly or indirectly reveal your identity. For example, we may aggregate your Usage Data to calculate the percentage of users accessing a specific website feature. However, if we combine or connect Aggregated Data with your personal data so that it can directly or indirectly identify you, we treat the combined data as personal data which will be used in accordance with this privacy notice.

We do not collect any Special Categories of Personal Data about you (this includes details about your race or ethnicity, religious or philosophical beliefs, sex life, sexual orientation, political opinions, trade union membership, information about your health and genetic and biometric data).

If you fail to provide personal data

Where we need to collect personal data by law, or under the terms of a contract we have with you and you fail to provide that data when requested, we may not be able to perform the contract we have or are trying to enter into with you. In this case, we may have to cancel the service you have with us but we will notify you if this is the case at the time.

3. How is your personal data collected?

We use different methods to collect data from and about you including through:

Direct interactions. You may give us your Identity, Contact and Financial Data by filling in forms or by corresponding with us by post, phone, email or otherwise. This includes personal data you provide when you:

– apply for services;

– subscribe to our service or publications;

– request marketing to be sent to you;

– enter a competition, promotion or survey; or

– give us some feedback.

Automated technologies or interactions. As you interact with our website, we may automatically collect Technical Data about your equipment, browsing actions and patterns. We collect this personal data by using cookies, [server logs] and other similar technologies. We may also receive Technical Data about you if you visit other websites employing our cookies.] Please see our cookie policy for further details.

Third parties or publicly available sources. We may receive personal data about you from various third parties and public sources as set out below:
Technical Data from the following parties:

– analytics providers [such as Google based outside the EU]; and
– search information providers based inside or outside the EU].

4. How we use your personal data

We will only use your personal data when the law allows us to. Most commonly, we will use your personal data in the following circumstances:

– Where we need to in order to assist you with your pre-contractual interests.
– Where it is necessary for our legitimate interests (or those of a third party) and your interests and fundamental rights do not override those interests.
– Where we need to comply with a legal or regulatory obligation.

Generally we do not rely on consent as a legal basis for processing your personal data other than in relation to sending third party direct marketing communications to you via email or text message. You have the right to withdraw consent to marketing at any time by contacting us.

Purposes for which we will use your personal data

We have set out below, in a table format, a description of all the ways we plan to use your personal data, and which of the legal bases we rely on to do so. We have also identified what our legitimate interests are where appropriate.

Note that we may process your personal data for more than one lawful ground depending on the specific purpose for which we are using your data. Please contact us if you need details about the specific legal ground we are relying on to process your personal data where more than one ground has been set out in the table below.

Purpose/Activity Type of data Lawful basis for processing including basis of legitimate interest
To register you as a new customer
  1. Identity
  2. Contact
 Performance of a contract with you
To manage our relationship with you which will include:

  1. Notifying you about changes to our terms or privacy policy
  2. Asking you to leave a review or take a survey
  1. Identity
  2. Contact
  3. Profile
  4. Marketing and Communications
  1. Performance of a contract with you
  2. Necessary to comply with a legal obligation
  3. Necessary for our legitimate interests (to keep our records updated and to study how customers use our products/services)
To enable you to partake in a prize draw, competition or complete a survey
  1. Identity
  2. Contact
  3. Profile
  4. Usage
  5. Marketing and Communications
  1. Performance of a contract with you
  2. Necessary for our legitimate interests (to study how customers use our products/services, to develop them and grow our business)
To administer and protect our business and this website (including troubleshooting, data analysis, testing, system maintenance, support, reporting and hosting of data)
  1. Identity
  2. Contact
  3. Technical
  1. Necessary for our legitimate interests (for running our business, provision of administration and IT services, network security, to prevent fraud and in the context of a business reorganisation or group restructuring exercise)
  2. Necessary to comply with a legal obligation
To deliver relevant website content and advertisements to you and measure or understand the effectiveness of the advertising we serve to you
  1. Identity
  2. Contact
  3. Profile
  4. Usage
  5. Marketing and Communications
  6. Technical
 Necessary for our legitimate interests (to study how customers use our products/services, to develop them, to grow our business and to inform our marketing strategy)
To use data analytics to improve our website, products/services, marketing, customer relationships and experiences
  1. Technical
  2. Usage
 Necessary for our legitimate interests (to define types of customers for our products and services, to keep our website updated and relevant, to develop our business and to inform our marketing strategy)
To make suggestions and recommendations to you about goods or services that may be of interest to you
  1. Identity
  2. Contact
  3. Technical
  4. Usage
  5. Profile
 Necessary for our legitimate interests (to develop our products/services and grow our business)

Marketing

We strive to provide you with choices regarding certain personal data uses, particularly around marketing and advertising.

Promotional offers from us

We may use your Identity, Contact, Technical, Usage and Profile Data to form a view on what we think you may want or need, or what may be of interest to you. This is how we decide which products, services and offers may be relevant for you (we call this marketing).

You will receive marketing communications from us if you have requested information from us or purchased goods or services from us or if you provided us with your details when you entered a competition or registered for a promotion and, in each case, you have not opted out of receiving that marketing.

Third-party marketing

We will get your express opt-in consent before we share your personal data with any company for marketing purposes.

Opting out

You can ask us or third parties to stop sending you marketing messages by following the opt-out links on any marketing message sent to you or by contacting us at any time.

Where you opt out of receiving these marketing messages, this will not apply to personal data provided to us as a result of a service provision.

Cookies

You can set your browser to refuse all or some browser cookies, or to alert you when websites set or access cookies. If you disable or refuse cookies, please note that some parts of this website may become inaccessible or not function properly. For more information about the cookies we use, please see here.

Change of purpose

We will only use your personal data for the purposes for which we collected it, unless we reasonably consider that we need to use it for another reason and that reason is compatible with the original purpose. If you wish to get an explanation as to how the processing for the new purpose is compatible with the original purpose, please contact us.

If we need to use your personal data for an unrelated purpose, we will notify you and we will explain the legal basis which allows us to do so.

Please note that we may process your personal data without your knowledge or consent, in compliance with the above rules, where this is required or permitted by law.

5. Disclosures of your personal data

We may have to share your personal data with the parties set out below for the purposes set out in the table in paragraph 4 above.

External Third Parties as set out in the Glossary.

Third parties to whom we may choose to sell, transfer, or merge parts of our business or our assets. Alternatively, we may seek to acquire other businesses or merge with them. If a change happens to our business, then the new owners may use your personal data in the same way as set out in this privacy notice.

We require all third parties to respect the security of your personal data and to treat it in accordance with the law. We do not allow our third-party service providers to use your personal data for their own purposes and only permit them to process your personal data for specified purposes and in accordance with our instructions.

6. International transfers

We may transfer your data outside the European Economic Area (EEA).

Whenever we transfer your personal data out of the EEA, we ensure a similar degree of protection is afforded to it by ensuring at least one of the following safeguards is implemented:

We will only transfer your personal data to countries that have been deemed to provide an adequate level of protection for personal data by the European Commission. For further details, see European Commission: Adequacy of the protection of personal data in non-EU countries.

Where we use certain service providers, we may use specific contracts approved by the European Commission which give personal data the same protection it has in Europe. For further details, see European Commission: Model contracts for the transfer of personal data to third countries.

Please contact us if you want further information on the specific mechanism used by us when transferring your personal data out of the EEA.

7. Data security

We have put in place appropriate security measures to prevent your personal data from being accidentally lost, used or accessed in an unauthorised way, altered or disclosed. In addition, we limit access to your personal data to those employees, agents, contractors and other third parties who have a business need to know. They will only process your personal data on our instructions and they are subject to a duty of confidentiality.

We have put in place procedures to deal with any suspected personal data breach and will notify you and any applicable regulator of a breach where we are legally required to do so.

8. Data retention

How long will you use my personal data for?

We will only retain your personal data for as long as necessary to fulfil the purposes we collected it for, including for the purposes of satisfying any legal, accounting, or reporting requirements.

To determine the appropriate retention period for personal data, we consider the amount, nature, and sensitivity of the personal data, the potential risk of harm from unauthorised use or disclosure of your personal data, the purposes for which we process your personal data and whether we can achieve those purposes through other means, and the applicable legal requirements.

In some circumstances we may anonymise your personal data (so that it can no longer be associated with you) for research or statistical purposes in which case we may use this information indefinitely without further notice to you.

9. Your legal rights

Under certain circumstances, you have rights under data protection laws in relation to your personal data. If you wish to exercise any of the rights set out at the end of this Policy, please contact the applications@seekfinance.co.uk

No fee usually required

You will not have to pay a fee to access your personal data (or to exercise any of the other rights). However, we may charge a reasonable fee if your request is clearly unfounded, repetitive or excessive. Alternatively, we may refuse to comply with your request in these circumstances.

What we may need from you

We may need to request specific information from you to help us confirm your identity and ensure your right to access your personal data (or to exercise any of your other rights). This is a security measure to ensure that personal data is not disclosed to any person who has no right to receive it. We may also contact you to ask you for further information in relation to your request to speed up our response.

Time limit to respond

We try to respond to all legitimate requests within one month. Occasionally it may take us longer than a month if your request is particularly complex or you have made a number of requests. In this case, we will notify you and keep you updated.

10. Glossary

LAWFUL BASIS

Legitimate Interest means the interest of our business in conducting and managing our business to enable us to give you the best service/product and the best and most secure experience. We make sure we consider and balance any potential impact on you (both positive and negative) and your rights before we process your personal data for our legitimate interests. We do not use your personal data for activities where our interests are overridden by the impact on you (unless we have your consent or are otherwise required or permitted to by law). You can obtain further information about how we assess our legitimate interests against any potential impact on you in respect of specific activities by contacting us.

Performance of Contract means processing your data where it is necessary for the performance of a contract to which you are a party or to take steps at your request before entering into such a contract.

Comply with a legal or regulatory obligation means processing your personal data where it is necessary for compliance with a legal or regulatory obligation that we are subject to.

THIRD PARTIES

External Third Parties

Service providers acting as processor who provide IT and system administration services.

Professional advisers acting as processors who may provide consultancy, banking, legal, insurance and accounting services.

Regulators and other authorities acting as processors who require reporting of processing activities in certain circumstances.

YOUR LEGAL RIGHTS

You have the right to:

Request access to your personal data (commonly known as a “data subject access request”). This enables you to receive a copy of the personal data we hold about you and to check that we are lawfully processing it.

Request correction of the personal data that we hold about you. This enables you to have any incomplete or inaccurate data we hold about you corrected, though we may need to verify the accuracy of the new data you provide to us.

Request erasure of your personal data. This enables you to ask us to delete or remove personal data where there is no good reason for us continuing to process it. You also have the right to ask us to delete or remove your personal data where you have successfully exercised your right to object to processing (see below), where we may have processed your information unlawfully or where we are required to erase your personal data to comply with local law. Note, however, that we may not always be able to comply with your request of erasure for specific legal reasons which will be notified to you, if applicable, at the time of your request.

Object to processing of your personal data where we are relying on a legitimate interest (or those of a third party) and there is something about your particular situation which makes you want to object to processing on this ground as you feel it impacts on your fundamental rights and freedoms. You also have the right to object where we are processing your personal data for direct marketing purposes. In some cases, we may demonstrate that we have compelling legitimate grounds to process your information which override your rights and freedoms.

Request restriction of processing of your personal data. This enables you to ask us to suspend the processing of your personal data in the following scenarios: (a) if you want us to establish the data’s accuracy; (b) where our use of the data is unlawful but you do not want us to erase it; (c) where you need us to hold the data even if we no longer require it as you need it to establish, exercise or defend legal claims; or (d) you have objected to our use of your data but we need to verify whether we have overriding legitimate grounds to use it.

Request the transfer of your personal data to you or to a third party. We will provide to you, or a third party you have chosen, your personal data in a structured, commonly used, machine-readable format. Note that this right only applies to automated information which you initially provided consent for us to use or where we used the information to perform a contract with you.

Withdraw consent at any time where we are relying on consent to process your personal data. However, this will not affect the lawfulness of any processing carried out before you withdraw your consent. If you withdraw your consent, we may not be able to provide certain products or services to you. We will advise you if this is the case at the time you withdraw your consent.

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  • What is bridging finance?

    Bridging finance is a short-term loan typically secured against a property. It is normally used when a traditional finance agreement such as a mortgage is unsuitable.

    A bridging loan may be considered when a property does not meet the traditional requirements of mortgage lenders, the borrower does not meet normal mortgage criteria or because the finance is only required for a short term – between 1 month and 3 years.

    In this guide Seek Finance discusses the most frequently asked bridging finance questions.

    What can I use bridging for?

    We can provide bridging loans for any legal purpose.

    How long does it take to get a bridging loan?

    We have lenders who will guarantee a turnaround within 48 hours; however, this is over and above the norm and you should expect to pay a higher rate for the privilege. Typically, a turnaround time of 2-3 weeks should be expected.

    How long can I take a bridging loan out for?

    This entirely depends on the type of loan you take out. Regulated loans can run for a maximum of 12 months, however unregulated loans can be taken out for up to 36 months.

    Do I need to make monthly payments on a bridging loan?

    A bridging loan is not repaid in instalments like a normal bank loan or mortgage. In fact, with almost all bridging loans you will only be required to make a payment when you close off the loan. The interest will be added to the loan each month, so the longer you hold the loan the more interest you will pay.

    How much equity is required to obtain a bridging loan?

    Depending on the purpose of the loan and the source of the capital, different providers will set different equity requirements. Your entry equity may also affect the rate you pay for the loan. In almost all instances the maximum Loan to Value (LTV) will be 85%.

    Will a bridging loan appear on my credit file?

    Yes, bridging loans and applications for them will appear on your credit file. However, getting a quote from us will not as this is not a formal application.

    Can I get a 100% loan to value bridging loan?

    Yes this is possible in two circumstances. Firstly, as we have lenders who ignore purchase price and lend to the open market value, provided the discount on your purchase price is significant enough to be below the open market value then you could receive 100%. Secondly, if this is not the case or you don’t have an open market value to go off, then 100% is still possible with extra security requirements.

    What is the difference between a first and second charge bridging loan?

    If you do not have finance on a property or are using the bridging loan to purchase the property, the loan will be registered as a first charge at the Land Registry. This simply means that if you default, the bridging provider will have the right to sell your property and recoup its money first.

    A second charge bridging loan is where there the existing mortgage on the property remains in place and you raise additional finance. This is registered at the Land Registry ranking behind the existing mortgage and is known as a second charge. In effect, you will then have two charges registered on your property.

    Are Bridging loans regulated?

    If the loan is secured against a property that you or your family live in, then the loan provider will be regulated by the FCA.

    Is my home at risk if I don’t keep up with the repayments?

    You do not have to make regular monthly repayments on bridging loans, so there are no repayments to keep up. However, if at the end of the term you cannot repay the loan, the lender could seek to repossess it, especially if you have used the property as security.

    Can I use bridging finance to stop a repossession?

    As there are no monthly repayments, the same income requirements do not exist as they do with a mortgage or secured loan. Therefore, the bridging company will consider the financial result of your project and not your monthly income.

    If you have a standard loan and you cannot keep up your repayments on your property you could therefore take out a bridging loan to make your repayments when you sell the property to help monthly cashflow and avoid a repossession scenario.

    Can I borrow via a corporate entity?

    Yes, provided there is sufficient security and the ability to repay the commercial bridging loan.

    Do I need income for a bridging loan?

    Not necessarily as the loan will usually be for a specific purpose to plug a short-term capital requirement. With the release of capital from the sale of an asset being the means of repayment, income requirements do not exist in the same way as they do for mortgages and other loans.

    If I have credit issues can I still apply for a bridging loan?

    Yes, there are lenders that provide bridging finance for clients who have County Court Judgements, defaults, arrears and discharged bankruptcies.

  • What types of bridging loans & security are there?

    The short-term capital made available through bridging loans can be used for a variety of commercial purposes. From housing developments to contract fulfilment, short term loans that allow borrowers to only repay capital and interest at the end of the project can have a hugely positive cashflow impact.

    Because of the wide-ranging reasons behind a borrowers need for bridging finance, different types of bridging loan exist, each tailored to the borrowers’ specific requirements.

    In this guide Seek Finance discusses the most frequently asked questions revolving around the types of bridging loans available.

    What is classed as a light refurbishment bridge?

    Different lenders have different definitions of what constitutes a light refurbishment but broadly speaking, this applies to a project that does not require any structural change to the property or the requirement for planning permission.

    What is classed as a heavy refurbishment bridge?

    Unlike light refurbishment, a heavy refurbishment will normally involve structural changes to a property and in most cases, planning permission (unless covered under PDRs) will be required.

    What is a non-regulated bridge?

    Typically, this applies to an investment property which you have never lived in and have no intention of doing so. This can be a residential or commercial property and in some cases land. This type of loan will normally have a maximum term of 24 months but in some cases, this can be increased up to 36 months.

    What is a closed bridge?

    A closed bridging loan is one that is taken out when there is a guaranteed exit date, or date when the loan will be repaid. An example of a guaranteed exit date would be the date of completion for a property sale having exchanged contracts. When taking out a bridging loan under these circumstances a guaranteed exit date can be provided. This type of bridging loan is obviously less risky to both the lender and the borrower, and this is reflected in the lending rates and charges.

    What is an open bridge?

    An open bridging loan does not have a guaranteed exit date and therefore a borrower can only indicate to the lender or guess how long the loan will be required. An example of an open bridging loan would be when funds are to be cleared following the sale of a property, but at the time of taking out the loan there are no confirmed buyer. Open bridging loans are a riskier proposition for both the lender, who does not know when to expect repayment of the loan, and also the borrower who does not know how long or how many monthly interest payments they will have to pay.

    What is meant by an exit strategy?

    This refers to a borrower’s plan to repay their loan. Typically, this will be by refinancing on to a longer-term loan agreement, selling the security property or using other personal funds when they become available such as inheritance. In most cases a lender will want evidence of a borrower’s proposed exit strategy prior to the release of funds.

    What is meant by Security?

    Security is the term used for whatever land or property the lender secures the bridging loan charge against.

    What is meant by additional security?

    This refers to additional property that is offered to a lender to increase the security and lower the total loan to value (LTV) of a loan. Additional security to help recover their funds will generally lead to better lending terms being offered to the borrower.

    What if my property already has a mortgage, can I still use this as security?

    The bridging loan facilities can be secured as first or second charges, and in some circumstances even third charges. Whether a lender will want to do this is dependent on if there is still sufficient equity in the property after other lenders have recovered their funds first.

    What type of security can be used for a bridging loan?

    We have bridging loans that can be secured on residential property, commercial property, building plots and land.

  • How much does a bridging loan cost?

    Bridging finance is a great way to “bridge the cashflow gap” between starting a project and realising its underlying value after completion.

    Using a bridging loan will often give you an upfront capital boost, with the cost of that capital coming after the profit on the project has been realised. However, both that capital boost and the cashflow quick win comes at a cost.

    This cost can vary depending on several factors including the certainty of an exit date, the amount of security available from the borrower and the loan to value ratio.

    In this guide Seek Finance discusses the most frequently asked questions revolving around the cost of bridging finance.

    How much can I borrow?

    Bridging finance is designed to help finance commercial projects, therefore the amount you can borrow is determined on a case-by-case basis. The amount you borrow is based on the scope of your project and not your monthly income like a normal loan. We have extensive bridging finance facilities that can provide bridging loans from £26,000 to £50 million or more.

    Are there any upfront fees?

    We do not charge any upfront fees for bridging loans. Lenders may charge upfront fees depending on the level of work required to value your project. For example, in the absence of a suitable valuation report for your unique project, a lender may ask you to cover their valuation fees in advance and in some circumstances you may also need to cover the lenders legal fees.

    What costs are involved with bridging?

    For bridging loans there is usually an arrangement fee which is only payable once you have your bridging finance facility. Therefore, if you do not receive your bridging loan there are no arrangement fees to pay.

    Can I get additional funds after I have completed my bridging loan?

    This will be possible provided that the existing bridging loan facility is not in default and that there is sufficient equity available to secure the additional borrowing.

    How is bridging loan interest calculated?

    Lenders have different ways of calculating interest. We generally work with lenders where you have the option of rolling up the interest on the loan. This provides several benefits, including reducing the need for a monthly servicing charge and can be extremely attractive for cash flow purposes. Instead of paying interest monthly the interest is added to the loan balance every month and payable upon completion of the loan. Therefore, when you pay off the loan, the redemption repayment will include accrued interest and you will simply pay for the number of months you used the facility.

    Can you make capital reductions to a bridging loan?

    Yes you can, this will reduce your outstanding bridging finance balance and also reduce your monthly interest charges. You will need to weight up the benefits of paying a lower interest amount on your loan against the opposing cashflow benefits of not doing so.

    Can I pay the bridging loan off early?

    With the providers we work with, there are no penalties for paying of a bridging facility early provided you meet the minimum term requirement. Most loans are set up typically for 12 months with a minimum loan term of 1 month. This means that if you pay off your loan after 4 months you will only pay for the loan plus interest for 4 months.

    What does retained interest mean?

    With retained interest calculations, a lender will calculate the estimated interest charges for the term of the loan, add this to the loan advance and then retain the funds to service the interest payments every month until the loan is repaid or the term comes to an end.

    What does rolled interest mean?

    Rolled interest is when a lender agrees that the repayment of capital and interest can be deferred for a period, usually until the end of the loan term. In this period, you won’t make any repayments at all. Interest will continue to be added to the loan monthly, weekly or possibly daily. In this situation you should make sure you understand the impact of compound interest, namely you will be paying interest on the interest each time a new interest amount is added.

    What does serviced interest mean?

    This means that the interest charged on a loan is being repaid monthly rather than being added to the loan. Given the nature of this type of arrangement, lenders will normally want to see evidence that the borrower can afford to make the repayments every month in much the same way as a traditional mortgage.

Talk to the experts

0800 804 4645
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Resource Hub

Top searches for this page

  • What is bridging finance?

    Bridging finance is a short-term loan typically secured against a property. It is normally used when a traditional finance agreement such as a mortgage is unsuitable.

    A bridging loan may be considered when a property does not meet the traditional requirements of mortgage lenders, the borrower does not meet normal mortgage criteria or because the finance is only required for a short term – between 1 month and 3 years.

    In this guide Seek Finance discusses the most frequently asked bridging finance questions.

    What can I use bridging for?

    We can provide bridging loans for any legal purpose.

    How long does it take to get a bridging loan?

    We have lenders who will guarantee a turnaround within 48 hours; however, this is over and above the norm and you should expect to pay a higher rate for the privilege. Typically, a turnaround time of 2-3 weeks should be expected.

    How long can I take a bridging loan out for?

    This entirely depends on the type of loan you take out. Regulated loans can run for a maximum of 12 months, however unregulated loans can be taken out for up to 36 months.

    Do I need to make monthly payments on a bridging loan?

    A bridging loan is not repaid in instalments like a normal bank loan or mortgage. In fact, with almost all bridging loans you will only be required to make a payment when you close off the loan. The interest will be added to the loan each month, so the longer you hold the loan the more interest you will pay.

    How much equity is required to obtain a bridging loan?

    Depending on the purpose of the loan and the source of the capital, different providers will set different equity requirements. Your entry equity may also affect the rate you pay for the loan. In almost all instances the maximum Loan to Value (LTV) will be 85%.

    Will a bridging loan appear on my credit file?

    Yes, bridging loans and applications for them will appear on your credit file. However, getting a quote from us will not as this is not a formal application.

    Can I get a 100% loan to value bridging loan?

    Yes this is possible in two circumstances. Firstly, as we have lenders who ignore purchase price and lend to the open market value, provided the discount on your purchase price is significant enough to be below the open market value then you could receive 100%. Secondly, if this is not the case or you don’t have an open market value to go off, then 100% is still possible with extra security requirements.

    What is the difference between a first and second charge bridging loan?

    If you do not have finance on a property or are using the bridging loan to purchase the property, the loan will be registered as a first charge at the Land Registry. This simply means that if you default, the bridging provider will have the right to sell your property and recoup its money first.

    A second charge bridging loan is where there the existing mortgage on the property remains in place and you raise additional finance. This is registered at the Land Registry ranking behind the existing mortgage and is known as a second charge. In effect, you will then have two charges registered on your property.

    Are Bridging loans regulated?

    If the loan is secured against a property that you or your family live in, then the loan provider will be regulated by the FCA.

    Is my home at risk if I don’t keep up with the repayments?

    You do not have to make regular monthly repayments on bridging loans, so there are no repayments to keep up. However, if at the end of the term you cannot repay the loan, the lender could seek to repossess it, especially if you have used the property as security.

    Can I use bridging finance to stop a repossession?

    As there are no monthly repayments, the same income requirements do not exist as they do with a mortgage or secured loan. Therefore, the bridging company will consider the financial result of your project and not your monthly income.

    If you have a standard loan and you cannot keep up your repayments on your property you could therefore take out a bridging loan to make your repayments when you sell the property to help monthly cashflow and avoid a repossession scenario.

    Can I borrow via a corporate entity?

    Yes, provided there is sufficient security and the ability to repay the commercial bridging loan.

    Do I need income for a bridging loan?

    Not necessarily as the loan will usually be for a specific purpose to plug a short-term capital requirement. With the release of capital from the sale of an asset being the means of repayment, income requirements do not exist in the same way as they do for mortgages and other loans.

    If I have credit issues can I still apply for a bridging loan?

    Yes, there are lenders that provide bridging finance for clients who have County Court Judgements, defaults, arrears and discharged bankruptcies.

  • What types of bridging loans & security are there?

    The short-term capital made available through bridging loans can be used for a variety of commercial purposes. From housing developments to contract fulfilment, short term loans that allow borrowers to only repay capital and interest at the end of the project can have a hugely positive cashflow impact.

    Because of the wide-ranging reasons behind a borrowers need for bridging finance, different types of bridging loan exist, each tailored to the borrowers’ specific requirements.

    In this guide Seek Finance discusses the most frequently asked questions revolving around the types of bridging loans available.

    What is classed as a light refurbishment bridge?

    Different lenders have different definitions of what constitutes a light refurbishment but broadly speaking, this applies to a project that does not require any structural change to the property or the requirement for planning permission.

    What is classed as a heavy refurbishment bridge?

    Unlike light refurbishment, a heavy refurbishment will normally involve structural changes to a property and in most cases, planning permission (unless covered under PDRs) will be required.

    What is a non-regulated bridge?

    Typically, this applies to an investment property which you have never lived in and have no intention of doing so. This can be a residential or commercial property and in some cases land. This type of loan will normally have a maximum term of 24 months but in some cases, this can be increased up to 36 months.

    What is a closed bridge?

    A closed bridging loan is one that is taken out when there is a guaranteed exit date, or date when the loan will be repaid. An example of a guaranteed exit date would be the date of completion for a property sale having exchanged contracts. When taking out a bridging loan under these circumstances a guaranteed exit date can be provided. This type of bridging loan is obviously less risky to both the lender and the borrower, and this is reflected in the lending rates and charges.

    What is an open bridge?

    An open bridging loan does not have a guaranteed exit date and therefore a borrower can only indicate to the lender or guess how long the loan will be required. An example of an open bridging loan would be when funds are to be cleared following the sale of a property, but at the time of taking out the loan there are no confirmed buyer. Open bridging loans are a riskier proposition for both the lender, who does not know when to expect repayment of the loan, and also the borrower who does not know how long or how many monthly interest payments they will have to pay.

    What is meant by an exit strategy?

    This refers to a borrower’s plan to repay their loan. Typically, this will be by refinancing on to a longer-term loan agreement, selling the security property or using other personal funds when they become available such as inheritance. In most cases a lender will want evidence of a borrower’s proposed exit strategy prior to the release of funds.

    What is meant by Security?

    Security is the term used for whatever land or property the lender secures the bridging loan charge against.

    What is meant by additional security?

    This refers to additional property that is offered to a lender to increase the security and lower the total loan to value (LTV) of a loan. Additional security to help recover their funds will generally lead to better lending terms being offered to the borrower.

    What if my property already has a mortgage, can I still use this as security?

    The bridging loan facilities can be secured as first or second charges, and in some circumstances even third charges. Whether a lender will want to do this is dependent on if there is still sufficient equity in the property after other lenders have recovered their funds first.

    What type of security can be used for a bridging loan?

    We have bridging loans that can be secured on residential property, commercial property, building plots and land.

  • How much does a bridging loan cost?

    Bridging finance is a great way to “bridge the cashflow gap” between starting a project and realising its underlying value after completion.

    Using a bridging loan will often give you an upfront capital boost, with the cost of that capital coming after the profit on the project has been realised. However, both that capital boost and the cashflow quick win comes at a cost.

    This cost can vary depending on several factors including the certainty of an exit date, the amount of security available from the borrower and the loan to value ratio.

    In this guide Seek Finance discusses the most frequently asked questions revolving around the cost of bridging finance.

    How much can I borrow?

    Bridging finance is designed to help finance commercial projects, therefore the amount you can borrow is determined on a case-by-case basis. The amount you borrow is based on the scope of your project and not your monthly income like a normal loan. We have extensive bridging finance facilities that can provide bridging loans from £26,000 to £50 million or more.

    Are there any upfront fees?

    We do not charge any upfront fees for bridging loans. Lenders may charge upfront fees depending on the level of work required to value your project. For example, in the absence of a suitable valuation report for your unique project, a lender may ask you to cover their valuation fees in advance and in some circumstances you may also need to cover the lenders legal fees.

    What costs are involved with bridging?

    For bridging loans there is usually an arrangement fee which is only payable once you have your bridging finance facility. Therefore, if you do not receive your bridging loan there are no arrangement fees to pay.

    Can I get additional funds after I have completed my bridging loan?

    This will be possible provided that the existing bridging loan facility is not in default and that there is sufficient equity available to secure the additional borrowing.

    How is bridging loan interest calculated?

    Lenders have different ways of calculating interest. We generally work with lenders where you have the option of rolling up the interest on the loan. This provides several benefits, including reducing the need for a monthly servicing charge and can be extremely attractive for cash flow purposes. Instead of paying interest monthly the interest is added to the loan balance every month and payable upon completion of the loan. Therefore, when you pay off the loan, the redemption repayment will include accrued interest and you will simply pay for the number of months you used the facility.

    Can you make capital reductions to a bridging loan?

    Yes you can, this will reduce your outstanding bridging finance balance and also reduce your monthly interest charges. You will need to weight up the benefits of paying a lower interest amount on your loan against the opposing cashflow benefits of not doing so.

    Can I pay the bridging loan off early?

    With the providers we work with, there are no penalties for paying of a bridging facility early provided you meet the minimum term requirement. Most loans are set up typically for 12 months with a minimum loan term of 1 month. This means that if you pay off your loan after 4 months you will only pay for the loan plus interest for 4 months.

    What does retained interest mean?

    With retained interest calculations, a lender will calculate the estimated interest charges for the term of the loan, add this to the loan advance and then retain the funds to service the interest payments every month until the loan is repaid or the term comes to an end.

    What does rolled interest mean?

    Rolled interest is when a lender agrees that the repayment of capital and interest can be deferred for a period, usually until the end of the loan term. In this period, you won’t make any repayments at all. Interest will continue to be added to the loan monthly, weekly or possibly daily. In this situation you should make sure you understand the impact of compound interest, namely you will be paying interest on the interest each time a new interest amount is added.

    What does serviced interest mean?

    This means that the interest charged on a loan is being repaid monthly rather than being added to the loan. Given the nature of this type of arrangement, lenders will normally want to see evidence that the borrower can afford to make the repayments every month in much the same way as a traditional mortgage.

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