Training Example: KIS Finance Ltd – Review the Data, Give Your Score & Compare to the Real AI Evaluation

As Featured in:
[H2] Bridging Loans
As independent bridging finance brokers we have access to all the best lenders. Our very experienced, friendly team will ensure that you receive the best possible bridging deal.
Loans from £50,000 to £500 million
Loan terms from 1 to 24 months
Fast turnaround
No broker fees
[H3] Bridging Loan Calculator
[H2] Development Finance

Our specialist development finance broker team have access to all the most competitive and flexible development plans. They will also ensure that the whole process is kept as simple as possible.
Loans from £100,000 to £1 billion
Fast funding
Flexible plans
No broker fees
[H3] Development Finance Calculator
[H2] Commercial Mortgages

We have an awards winning team who have extensive facilities to provide the best deals on business loans and commercial mortgages throughout the UK.
Commercial Mortgages from £100,000 to £250 million
Full commercial or semi-commercial properties
Interest Only options available
Access to all the best lenders
[H3] Commercial Mortgage Calculator
[H2] Secured Loans

Our secured loan advisers are very experienced in providing the best possible loan deals. With access to all lenders, we cover the whole of the UK and keep the whole process very simple.
Loan from £5,000 to £2.5 million
Loan terms from 3 to 35 years
High LTV - Up to 100% Loan to Value - 125% in some cases
Adverse credit plans available
[H3] Secured Loan Calculator

What is a Bridging Loan?
How do I get a bridging loan?
How does a bridging loan work?
Do you Require a 'Regulated' or 'Unregulated' Bridging Loan?
Regulated Bridging LoansUnregulated Bridging LoansLoan ProcessThe basic requirements for taking out a bridging loanAre bridging loans available nationwide?Differences between open and closed bridging loans
All You Need To KnowBuy Before You Sell Bridging
Financing an Unmortgageable Property
Property Development Bridging Loans
Good, Bad & Ugly of Bridging Loans
Popular Bridging Pages
All About Bridging Loans - Index
Bridging Loan Calculator
Rates and Costs
Large Bridging Loans
Auction Finance
Bridging Loan Uses
Lending Criteria
Frequently Asked Questions
Latest Bridging Finance Industry News
[IMG: testimonials]

[IMG: Sam O]
Sam O'Neill
Senior Bridging Consultant

[IMG: Phoebe Appleby]
Phoebe Appleby
Senior Bridging Adviser

[IMG: Mat Phillips]
Mat Phillips
Senior Bridging Consultant
[IMG: secure site]
We are reviewed by our customers using Reviews.co.uk
Rating: 4.97 / 5 based on 297 reviews
[IMG: stars]
Read our customer reviews
[H1] What is a bridging loan?
A bridging loan is a short-term finance facility up to 12 months, used to bridge the money gap when buying a new home before selling the current home. They range from £50,000 to £500 million and are secured against property in good or poor condition.
When compared to mortgages they are much quicker to arrange and not so dependent on income or credit history.
These days, due to their flexibility over other finance facilities, bridging loans are used to fund property refurbishment and restoration projects. Due to being fast to arrange, they are also popular for buying properties at auctions, where speed is usually essential.
They are sometimes referred to as swing loans or gap finance.
Fast to arrange
Buy before you sell
Property restoration
Poor credit history
Go To Menu
[H2] How do I get a bridging loan?
We have access to all the best bridging loan providers, plus a range of exclusive facilities that are useful for applications that fall outside general lending criteria.
"At KIS Bridging Loans we will take the time to fully understand your plans and finance requirements, before finding the best possible deal on the facility that is best suited to your requirements."
As specialist bridging loan brokers we arrange the best possible finance facilities for all our clients.
Our bridging loans are the most competitive in the country!
Being completely independent allows us access to the most competitive loan plans.
We are experts in the world of bridging loans and always up to date with regards to which lenders are currently offering the best deals.
When it is possible to do so, we also further negotiate with the lenders for their best individual deals. Our quick and easy to use bridging loan calculator provides instant quotes detailing the different costs involved with having a bridging loan.
From the start we put our best foot forward and will issue terms that have reduced interest charges and/or reduced facility fees.
We do not charge broker fees.
[IMG: Buy before you sell bridging]
Buy Before you Sell Bridging Finance
Go To Menu
[H2] How does a bridging loan work?
A bridging loan uses the equity in a property as security for a secured borrowing facility. Unlike other secured loans and mortgages, a bridging loan can be set up quickly and can also make use of property that would normally be considered unsuitable security by many lenders. For example properties in a poor condition, or those without kitchens or bathrooms.
It is important to remember that bridging loans are a short term finance option, so should not be taken out over long periods. As a short term method of finance they have advantages over other funding methods because:
Many facilities do not have exit or redemption fees.
They can be set up quickly.
Can make use of property that is in a poor state of repair and therefore unsuitable security for most lenders.
Interest charges can be added into the bridge loan for the full term, or a set number of months, and paid when the loan is redeemed.
Income proof and affordability calculations are not a limiting factor if interest is added to the facility.
A Poor credit history is ignored by many bridging lenders.
Less age restrictions.
Go To Menu
[H2] Do you Require a 'Regulated' or 'Unregulated' Bridging Loan?
Regulated Bridging Loans
These are for loans that are secured against residential property (ie. Houses and flats), or building plots, where the borrower, or any of their immediate family, currently reside, or plan to reside in the future.
Take Me To Regulated
Unregulated Bridging Loans
Unregulated loans are secured against residential investment properties (ie. buy to lets and HMOs), commercial and semi commercial properties, development land, land without planning permission and agricultural land.
Take Me To Unregulated
The vast majority of bridging lenders are unregulated, meaning they are not authorised or regulated by the Financial Conduct Authority. They are still able to lend but are restricted to only being able to provide unregulated bridging loans.
The lenders who provide regulated bridging also provide unregulated facilities. Whether or not a bridging loan is regulated or un-regulated depends on who might be living at the property being offered as security. If it is the borrower, or a close member of their family, then the loan will need to be regulated.
In addition, if the borrower does not currently reside at the security property, but has plans to in the future, then this will also mean that the loan will have to be regulated.
Some lenders may insist that a loan is written on a regulated agreement if the borrower does not reside at the security property but has done in the past.
Go To Menu
[H2] What is a Regulated Bridging Loan?
A lender is required to be authorised by the Financial Conduct Authority in order to provide a regulated bridging loan.
There are far fewer bridging lenders in the market place able to provide regulated bridging loans than there are providing unregulated bridging facilities.
We estimate that only 1 in 12 bridging lenders are regulated by the FCA.
Go To Menu
[H2] Extensive Regulated Bridging Loan Facilities
Loans from £50,000 to £5 million
Up to £20 million on some plans
Terms from 1 to 12 months
Up to 36 months on some plans
Rates from 0.53% per month
From 0.47% per month on some plans
Up to 75% Loan to Value
Open market value
No income proof required
When planned exit is sale of property
Poor credit history
CCJ's, Defaults, Arrears and Bankruptcies
Maximum age typically 85
No age restriction on some plans
Desktop valuations
Available on many plans
Joint legal representation
Available on many plans
Very fast service

Bridging Loan Calculator

[H2] We have access to all the FCA regulated bridging loan providers
There is a good choice of regulated lenders providing loan facilities ranging from £50,000 to £5 million, with 12 month terms (1 month minimum term) and offering rates ranging from 0.53% per month for loans up to 50% Loan to Value and 0.61% per month for loans up to 75% LTV.
In addition, there are some specialist plans that allow facilities of up to £20 million, loan terms of up to 36 months, monthly rates as low as 0.49%, no maximum age for applicants, plus other specialist underwriting. Please email or call us anytime for further information.
Go To Menu
[H2] What can regulated bridging loans be used for?
Buy before you sell – Buying a new home before you sell your existing one
Chain-breaks – If the sale of your property suddenly falls through
Downsizing
Upsizing
Buying a retirement home
Purchasing a property abroad
Re-Bridging
Auction Purchases
Purchase an investment property
Investment projects
Small property developments
Business uses – Your business need funds for some reason
Probate issues – helping with probate
Pay a debt
Property improvements, restorations, developments
Self build projects
Stopping repossessions
Repay or prevent bankruptcies
Regulated bridging loans can be used for many purposes when a short-term finance is required. Most people associate bridging being used to fund the purchase of a new property before the current one is sold.
This is still a very popular use, and are often used to help with downsizing, upsizing, buying a retirement home, or a property abroad. They are also commonly used for self builds, buying a property in need of repair as a restoration project, building projects, business uses, paying debts, stopping repossessions and solving probate issues.
Go To Menu
[H2] Types of security – what can a regulated bridging loan be secured on
Houses
Bungalows
Maisonettes
Flats
Self Builds
Development project
Restoration projects
Semi Commercial
Properties can be in a poor state of repair and unfit for mortgage purposes.
Go To Menu
[H2] How long should I take out a regulated bridging loan for?
The vast majority of our regulated bridging loans are set up on our platinum plans with a 12 month term.
On the platinum plans the minimum loan term is 1 month, meaning if you repay the loan within the first 30 days, you will be charged interest for the full month. However, after 1 month, interest will only be charged up to the day that the loan is repaid.
Go To Menu
[H2] Exit route – repaying your bridging loan
With regulated bridging loans there has to be a clear exit route. Some lenders will only accept sale of a property as the method of repayment, but most will also accept refinance.
When the planned exit route is refinance, it is important to ensure that there is a refinance option. For example, a bridging loan could be used to finance a self-build, then once the property has been completed a re-mortgage used to repay the bridging loan. It is essential to check that a re-mortgage will be available once the property has been completed, otherwise the bridging loan won’t be repaid as planned.
Bridging Loan Calculator
Go To Menu
[H2] Unregulated Bridging Loans
There are many options for unregulated bridging loans. Lenders range from private individuals who lend out their own money, or have some other source of funds, to banks and other large institutions.  Wherever possible it is advisable to borrow from an FCA registered and/or a reputable lender.
There are hundreds of bridging loan lenders, all of whom able to provide unregulated loans. They will lend to purchase or refinance:
Commercial Properties
Semi-Commercial - for example a shop with a flat above
Residential Houses or Flats - that are to be rented out, or refurbished and sold
Land – Farmland, Development Land (with or without planning), etc
Go To Menu
[H2] What is an Unregulated Bridging Loan?
A bridging loan is ‘unregulated’ when the property being used as security is for business or investment purposes which will never be occupied by the borrower or any member of their immediate family. A bridging loan also becomes unregulated when it is taken out under the name of a company/business, instead of a person.
Go To Menu
[H2] Extensive Unregulated Bridging Loan Facilities
Immediate in principle decisions
Fast written terms
Loans from £50,000 to £500 Million
Fast funding (48 hours is possible)
Terms up to 36 months
Rates from 4% per annum
LTV up to 80% of Open Market Value
No income proof
Company, partnerships or individuals
No age restrictions (on many plans)
Valuations not always required
Desktop valuations available on some plans
Joint legal representation available on some plans
Poor credit history
Non UK residents
All types of property and land
We cover all the UK and Northern Ireland (Facilities also for Europe)
All types of property construction
Complicated cases a speciality
1st, 2nd, 3rd, equitable and unilateral charges available
Go To Menu
[H2] What can unregulated bridging loans be used for?
Maintaining place in a sale chain
Re-Bridging
Auction purchases
Property development
Lease extensions and freehold purchases
Renovation, conversion and refurbishment
Payment of HMRC liability (Tax, VAT, Inheritance tax)
Legal and litigation fees
Repossessions stopped
Business cash injection
Business expansion
Chain breaks
Refinance an existing bridging loan
Raise funds on un-mortgageable properties
Must have purchases, a bargain property or other item
Go To Menu
[H2] Types of security – what can an unregulated bridging loan be secured on
Residential property (houses, flats, etc)
Property in a poor condition
HMOs
Mixed use property
All construction types
Hotels
Guest Houses
Care homes
Shops
Offices
Retail units
Leisure complexes
Farm land
Development land
Parking Spaces
Bridging Loan Calculator
Go To Menu
[H2] Loan Process - Keeping It Simple
We keep the whole process of obtaining a bridging loan as simple as possible.
1
Initial Enquiry
Free advice > Decision in principle > Indication of terms
Phone our friendly bridging team, all of whom have considerable experience arranging bridging loans, to discuss your requirements. We will offer free advice, a decision in principle and an indication of all the costs.
2
Loan acceptance and a detailed quote (or quotes)
Usually within 1 to 2 hours
Once we have an acceptance we will email you at least one detailed market leading quote.
3
Valuation
If you are happy with the terms then we can instruct valuation(s). The majority of loans require a valuation to be carried out on the security property, although a valuation is not required on many plans.
Legal works
If a loan needs to be paid out quickly, the legal work can be instructed at the same time as the valuation. Alternatively, this can be delayed until after the valuation, or until a time closer to when the loan funds are required.
4
Drawdown
Also know as Completion or Payout
Once the loan is ready funds can be release immediately or when required.
Go To Menu
[H2] What is a commercial bridging loan?
These are typically used by individuals and businesses who require fast short term finance, and use commercial property as their security.
Commercial bridging loans are often used to...
Purchase property that is unsuitable security for a traditional lenders – when a buy to let or commercial mortgage is unavailable due to a property's construction, state of repair, because it is going to be converted, demolished and rebuilt, etc
Stop repossession – you may need to clear arrears or completely repay a lender before a property is repossessed.
Fulfil a large order – upon receiving a large order a business may need quick short term funding in order to buy the materials and pay staff in order accept and complete an order.
Pay urgent tax demands - or replace funds when an overdraft or other facility is unexpectedly called in.
Provide a cash injection to a business - you may need to pay bills whilst waiting for invoices to be paid or an alternative finance facility to be put in place.
To purchase a bargain – a property or other item may become available that can be

Tailored Development Finance for Your Project
How we arrange the best possible development finance deals for our clients
Extensive finance facilities available
About development finance
Advantages of development finance
Who Uses Development Finance in the UK?
Who Can Apply for Development Financing in the UK?
100% development finance
Interest rates and costs

Development Finance Calculator
Development Finance Rates & Costs
Development Finance Lending Criteria
Case Studies
Development Finance in a Nutshell
100% Development Finance
Mezzanine Finance
Hints and Guides for Property Developers
Property Development Glossary of Terms
Development Finance Application Form

[IMG: Chris Borwick]
Chris Borwick
Development Finance Specialist
[IMG: Alan Andrews]
Alan Andrews
Commercial Consultant
[IMG: reviews]

[IMG: secure site]

[H2] Tailored Development Finance for Your Project
We arrange finance for a wide variety of development projects ranging from building a new house next to your own home, to high value luxury apartment complexes and large hotel developments.
As independent development finance brokers we are able to search the whole market and negotiate the best possible interest rates, fees and terms.
“We not only work hard to source the finance facility required to make your development possible, but also the best possible loan deal in order to maximise your project’s profits!”
Our extensive panel of lenders allows us the ability to offer a comprehensive range of lending options that can facilitate most development projects:

Loans from £100,000 to £1 billion
Fast decisions and full terms provided
Fast funding
Best possible deals
Funding unusual developments
100% funding available
100% Construction finance
Mezzanine finance
Joint venture funding
Up to 70% end value (GDV)
Available throughout the UK

Building new houses, flats and maisonettes
Luxury apartment developments
Care homes
Hotels
Fitness centres
Offices
Factories
Shops
Property conversions
Restoration projects
Property expansion

Go To Menu

[H2] How we arrange the best possible development finance deals for our clients
In order to prepare the most suitable finance options, we take the time to fully understand our client's project and funding requirements. Once we have identified the best development finance options, we discuss the procedures, requirements, costs, advantages and any disadvantages, of each of the available options.
When an option has been decided upon, we will work hard to arrange that facility, ensuring that it is in place quickly and with the minimum of hassle.
Go To Menu

[H2] Extensive finance facilities available
The best deals on property development finance are available when borrowing up to 60% of the land cost, 100% of the development cost and up to 60% GDV (gross development cost).
However we do have facilities available up to 70% land cost, 100% development costs and 70% GDV. We can also fund 100% of all property development costs if additional security is available.
We will always compare all the best lenders to find the best available deals.
For large facilities we have dedicated specialists who solely work on providing funding facilities of £5 million to £1 billion. They specifically work with lenders who have minimum loan amounts starting from £1 million, therefore specialising in funding large developments.
Go To Menu

[H2] About development finance
Development finance is used by property developers to fund a wide variety of building projects. These include building brand new single residential properties, large housing estates, industrial units, offices, apartment blocks, factories and hotels. Development finance can also be used for new builds, property restoration, expansion, or conversion projects.
This type of lending can be used for property conversions such as turning an old mill or old retail premises into flats. They can also be used to fund expansion, for example a client may have an industrial unit and want to build another one next to it, or expand an existing care home or hotel.
Similar to bridging, a development loan is intended as a short term option, with lenders expecting their money to be paid back once the project has been completed and sold, or alternatively refinanced.
A lender will lend against the value of the land (up to 70%) and also provide the build costs (100% of this is common). The lender is interested in how much the land is worth before construction begins and what the total building costs will be together with any other associated costs. Then most importantly they want to know what the property development will be worth once it is finished. This is known as the Gross Development Value or GDV.
Land cost + build cost (including architects, solicitors, etc) = total cost
GDV will be an estimate to how much the development will be worth upon completion.
Taking the total cost away from the GDV will demonstrate what the project could be worth.
GDV – Total cost = Profit
A lender will want to see a healthy profit in order to proceed.
Typical development finance institutions will release money for the initial purchase of the land followed by staged payments as the construction progresses.
Go To Menu

[H2] Advantages of development finance
The main advantage over other methods of finance is that it can provide the largest funding facility.
Funds can be raised at the start of the project secured against the value of the plot (or other security if available). Then as construction progresses, and the plot becomes more valuable, further funds can be released. Many lenders will actually provide funding for 100% of the construction costs, lending against the anticipated end value of the project.
There are also other advantages:
Property that would be considered as unsuitable security to other lenders can be used, such as derelict, run down buildings.
Interest can be added to the facility meaning monthly income is not an issue in underwriting and affordability calculations.
Medium and long term finance options can be expensive when only required for a short term.
Funds can be released in stages throughout the project, rather than all the start. This reduces interest charges as interest is only charged on funds that have been received.
Go To Menu

[H2] Who Uses Development Finance in the UK?
The UK’s construction industry is on a massive growth trajectory, with sustainability, cutting-edge technologies, and surging demand fueling expansion. With small and large-scale property developments taking place nationwide, it’s an opportunity to secure the financing you need to bring your vision to life.
Essentially, anyone who needs funding for their conversion, construction, or refurbishment project can use development financing to get their project off the ground. How developers finance their projects varies from project to project, but it tends to hinge on the size of the development
Large-scale developments running into millions nearly always require financing via specialist development financiers.
[H3] How Development Financing Works in Action
Let’s use an example to demonstrate how development financing works for UK property development.
In this example, a developer wishes to convert an old retail building in Norwich into 15 modern residential apartments. The developer has calculated the numbers and found:
Land Purchase Cost - £800,000
Development Cost - £1,700,000
Total Project Cost - £2,500,000
Estimated GDV (Gross Development Value) - £4,000,000
In this case, the lender agrees to fund 70% of the purchase cost, adding up to £560,000, and 100% of the development cost, for a total loan principle of £2,260,000. Your loan will be paid out in stages per your agreement with the lender.
Note that this doesn’t include the relevant fees the lender charges to provide the loan, which differ depending on specific lenders.
But what might these fees look like? Here’s an example:
Facility Fee (1.5%) - £33,900
Interest Rate (8%) - £180,800 (annually)
Exit Fee (2% of GDV) - £80,000
Total Loan Costs - £294,700 total
Loans, including fees and interest, are repaid through either sale or refinancing of the project when it’s finished. Assuming your project finishes in one year, your total repayment costs would amount to £2,794,700, leaving you with a projected profit of £1,205,300.
Developers can then rinse and repeat this process, enabling them to take on bigger and more ambitious projects with every success.
Go To Menu

[H2] Who Can Apply for Development Financing in the UK?
Project-related experience is always beneficial when applying for a development loan, but it’s a myth that you must have industry experience to have a chance of securing financing.
UK lenders account for a range of factors when deciding whether to approve a loan application. Some methods to increase your chances of success include:
Clear project plan
Realistic budget
Understanding of the development
Skilled professional team
Whether you have experience as a developer or you are moving into property development for the first time, brokers like KIS Finance are there to boost your chances of finding the right lender for you.
[H3] First-Time Developer?
Our team has experience supporting clients in sourcing their first development loan. Working with a broker enables you to access a network of lenders that can help you structure your deal to reduce risk and provide the financing support you need.
[H3] Professional Developer?
Professional developers know the value of building relationships with development loan providers throughout the finance industry. We are the starting point for financing complex deals and big projects, with loan amounts of up to £1 billion available.
Go To Menu
[H2] 100% development finance
100% facilities can of course be arranged with additional security.
If additional security is not available, then provided there is enough profit in the project once the development has been completed, the mainstream lenders will typically lend up to 60% of the land cost or value, and then 100% of the build costs. Some lenders will lend more than 60% of the land value/cost for the right project, plus there are options to increase funding further through mezzanine finance or joint venture funding.
Go To Menu

[H2] Development finance interest rates and costs
There are many different lenders, many of whom offer a range of facilities and options that can be structured differently. The costs involved with setting up a property development loan can be charged in a number of different ways.

[H2] The main development finance costs
[H2] Facility fee
This is also referred to as an arrangement fee or the amount in, as is charged as a percentage of the net or gross loan amount.
[H2] Interest rate
Interest rates can be advertised and charged on a monthly or annual basis. Therefore we may see rates advertised from 1% per month with one lender or 7% per annum with another. The rate of interest charged will vary from lender to lender, but will also depend on the amount of funding required, the security available, the type of development and the experience of the developer.
[H2] Exit fee
The exit fee is sometimes a percentage of the loan amount, but it can also be a percentage of the Gross Development Value (GDV) and not the amount being borrowed.
[H2] Broker fee
This is a fee charged by a broker for arranging a finance facility. This can be a fixed cost fee or a percentage of the loan amount being arranged.
The above 4 costs are the main ones to consider. There will always be an interest rate and for the vast majority of loans a facility fee. For the majority of development loans there are exit fees, but there are facilities where this is not applicable.
There are often brokers fees, usually charged as a percentage of the loan facility as a payment to the finance broker. However, we do not charge broker fees! Lenders pay an introductory fee so we do not feel the need to charge additional brokers fees.

[H2] Other development finance costs that should also be considered

[H2] Valuation fees
The initial valuation fees can be expensive as a surveyor has to value the security to determine its current open market value, forced sale value and also provide an estimate to the value of the project once it has been completed.
[H2] Application fees
These are sometimes referred to as commitment fees and are charged by some lenders or brokers at the start of the application process. KIS does not charge application fees.
[H2] Legal fees
Solicitor costs for the applicant and also the lender that will ultimately be paid for by the applicant.
[H2] Administration fees
Lenders tend to include some administration fees in their agreements.
[H2] Monitoring fees
As it progresses a lender will want to keep an eye on their investment so will usually instruct a surveyor (could be a property surveyor or quantity survey) to make regular inspections at the construction site. The cost of this is covered through monitoring fees paid by the borrower.
[H2] Draw down fees
Funds are usually released in stages, as the development increases in value and also this helps to keep the interest charges to a minimum. However a lender may charge a draw down fee for each release of funds.
[H2] Telegraphic Transfer fee (TT Fee)
Due to the large amounts usually involved, funds are usually sent from the lenders account by telegraphic transfer. The banks charge a small fee for this service which the lender will usually pass on directly to the borrower.

Go To Menu

[H2] What is a secured loan?
Secured loans are also commonly known as second charge mortgages or homeowner loans, because they are secured against your home like your mortgage.
When compared to other finance options, they allow you to borrow large amounts of money over longer repayment terms, and can often be used as an alternative to re-mortgaging.
A secured loan is ‘secured’ against the value in your home, making use of the available equity to provide a reduced risk to the lender, who in turn are then able to offer their customers lower interest rates and also more flexible lending criteria:
Loan amounts from £5,000 to £500,000 (Up to £2.5 million by referral)
Loan terms from 3 to 30 years
High LTV - Up to 100% Loan to Value - 125% in some cases
Fixed, discounted, and interest-only options are available
Employed and self-employed applicants accepted
Adverse credit plans available
[H2] How Do Secured Loans Work?
Secured loans are regulated by the Financial Conduct Authority, so have strict rules in place.
They generally range from £5,000 with no upper limit, repayment terms ranging from 3 years to 30 years.
They may have variable, fixed or discounted rates, and act like most personal loan agreements, in that you receive the loan then repay it making monthly repayments.
Where they are different over most personal loans are that they are secured against equity in property. This is usually the equity in your home.
The secured lender will place a charge at land registry to register their interest, which is linked to their loan facility. Their charge will then sit as a second change behind the first charge placed by the borrower’s mortgage company.
Once the loan has been repaid the second charge will be removed.
[H2] What can I use a secured loan for?
Their uses vary, with people borrowing for a wide range of purposes. These include:
Home improvements – from light refurbishments to extensions
Raising a deposit to purchase a second property
Consolidating existing debts
Capital injection into your business
Paying school tuition fees
Buying a new car
Luxury holiday
Paying a tax bill
Extending the lease on a property
Paying for a wedding
Exit for an existing bridging loan
[H2] What Can Be Used as Security?
The following property types can be used as security:
Houses
Flats
Bungalows
Cottages
Converted properties
Self-builds
Please note: We are unable to use commercial or semi-commercial property as security.
[H2] What is the Eligibility Criteria for a Secured Loan?
To qualify for a loan you must meet the following lending criteria:
You are a homeowner
Your home will be used as security.
You are a UK resident
Or have indefinite leave to remain.
You have regular income
Minimum period in employment of 1 month.
Minimum period self-employed of 12 months.
[H3] Other factors that will affect the lending decision:
Your age
You must be a minimum of 18 years of age to apply for a secured loan and it must be paid off in full by the time you are 80 years of age.
The available equity in your property
There must be enough available equity in your property to qualify for a secured loan. This is the percentage of the property owned outright by you.
Your credit history
We are able to consider applicants with adverse credit.
Your existing credit commitments and regular outgoings
The lender will need to assess whether you can afford the repayments on top of your current mortgage and other outgoings.
[H2] Will I get approved for a secured loan?
If you have used our secured loan calculator above and have been provided with loan terms, then congratulations you are past the first stage.
For the calculator to have provided loan terms, then the answers to the following questions should all be yes:
You are a homeowner with a mortgage (we also have facilities for applicants who own their home without a mortgage)
You are over 18 years old and will be no older than 80 at the end of the loan term that you have selected
If you jointly own your home with your partner, then they are happy to be a joint applicant with you
There is sufficient equity in your home for the loan that you require. This means that the amount of your mortgage balance, plus the loan amount you require, should not be more than the market value of your property. This means that the maximum loan available to you is the estimated market value of your home less the balance outstanding on your mortgage.
Example:
Value of property = £400,000
Mortgage balance = £250,000
Maximum second charge loan available = £150,000 - for applicants with a good credit history
This may be limited to £100,000 for applicants with an average to poor credit history
If your credit history is good, then this will open up the options with the best interest rates and also the maximum loan amounts.
[H2] Affordability
[H3] Your Income
If this is a joint application, then the income from both applicants can be used.
Income can be from either paid employment, self-employment or other forms or regular income, such as pension income or benefits.
[H3] Forms of Income
Employed income – you will need to be in a job that is permanent, and have been there for at least 1 month
Self-employed income – you will need to have been trading for at least 1 year
Regular income – you can use regular pension income, benefits income or another form of regular payment.
[H2] Working out your admissible income
We need to work out how much admissible income you have each month. To do this you will need to work out your total net income (after tax and other deductions). You then need to deduct from this your monthly mortgage payment and any other finance payments that you will still have in place after receiving your loan, such as credit card payments, car finance or other loans. You don’t need to include any finance payments that you are clearing with the loan.
You then need to deduct the monthly repayment that you will be paying on your new loan.
Once you have done this, you will need to have enough money left to cover shopping, pay your bills and entertainment, etc.
For a single applicant: the lender will want to see at least £800 per month left to cover these costs.
For a joint application: the lender will want to see at least £1000 per month left to cover these costs.
Example:
Net pay applicant 1 = £2,500
Net pay applicant 2 = £1,750
Total income = £4,250
Monthly mortgage payment = £1,200
Car finance = £378
Personal loan = £225
New Loan Facility = £600
Total = £2,403
£4,250 – £2,403 = £1,847 remaining after you have the new loan
If you don’t meet these requirements then there may be a problem with affordability.
To help your application fit with the lender’s requirements you could consider extending the term of the loan or possibly look at consolidating some of your outstanding items of finance.
You can call us to discuss this further with one of our expert advisors.
[H2] How to get a secured loan with bad credit
Even if you’ve been refused a personal loan due to adverse credit, you may still be able to take out a secured loan through us. If you have also been turned down for a secured loan, then please still call us as we have a panel of specialist loan facilities exclusively available to just a few brokers.
Secured loan providers are more flexible than unsecured lenders towards applicants who have experienced financial difficulties in the past, as they are providing an asset as security.
A new loan facility may also help to improve your credit profile if you are using the loan to clear up existing credit commitments that are showing missed payments or as being in default.
CCJs and Defaults – No maximum limit
Mortgage or secured loan arrears – No maximum limit
Active Payday Loans accepted
Active IVAs/Debt Management Plans accepted
Discharged bankruptcies
[H2] Advantages of a Secured Loan
[H3] Higher Borrowing
As you are providing security, you can normally borrow a much higher amount than you would be able to with an unsecured or personal loan.
The amount you can borrow will be dependent on the amount of equity in your property and also your income.
[H3] Length of Term
With the ability to borrow for up to 30 years, the cost is spread over a long period of time, making the monthly loan repayments more manageable and affordable.
[H3] Interest Rates
Interest rates will usually be much lower than those on an unsecured or personal loan, as security is provided and re-payment is much more likely.
[H3] Cheaper Alternative to Re-mortgaging
Taking out a second charge mortgage may be a cheaper way of releasing funds from your property than re-mortgaging. This is because you may be tied into your mortgage product and have expensive exit fees – a second charge mortgage allows you to keep your mortgage in place, whilst releasing further money.
[H3] Poor Credit History
If you have adverse credit, you may still qualify for a loan as you are providing an asset as security.
[H3] Any Purpose
You can use your loan for any reasonable and legal purpose.
[H2] Disadvantages of a Secured Loan
If you sell or re-mortgage your home then you will most likely have to repay the loan facility from the proceeds.
If you default on the loan facility, the lender may apply to the courts to repossess your home.
[H2] Reasons to Use a Second Charge Mortgage Instead of Re-Mortgaging
Second charge mortgages can provide a more suitable and flexible alternative to re-mortgaging.
Here are some of the reasons why:
[H3] Less expensive
The rates and various fees associated with re-mortgaging can be highly expensive compared to the cost of setting up a second charge mortgage.
[H3] You don’t want to change your existing mortgage rate
If you are already on a very good deal with your current mortgage lender, you may not want to change this. A second charge mortgage will allow you to keep your current mortgage but still release further funds from your property.
[H3] Shorter terms
Terms start from just three years.
[H3] Avoid early redemption penalties on your mortgage
A lot of mortgage lenders will charge a penalty fee if you want to want to re-mortgage and exit the term early. By taking out a secured loan instead, your current mortgage will remain in place so you will avoid these additional costs.
[H2] Why Should I Consider a Secured Loan?
There are many reasons to consider taking out a loan that is secured against an asset you own, especially if you need:
The money quickly – Can be paid out withing 24 hours
Want a low interest rate – interest rates form 5.05% pa
Want to spread the repayments over a long term – up to 30 years
It’s an option that many people use to resolve a wide array of financial concerns, be it to reinvest into their home for small improvements like a new kitchen or bathroom to major renovations like a complete refit throughout, kitchen extension, extending your land and landscaping the garden. They are also one of the most popular ways to consolidate debt, or use the funds to invest in a second property.
[H3] 10 reasons why it may be helpful to consider taking out a secured loan.
They can enable you to borrow more
You will most likely get a lower interest rate
Secured loans can help you to consolidate debt
Bad credit doesn’t always mean you can’t get accepted for a secured loan
Secured loans could be a better option than remortgaging
They can be used for any legal purpose
Self-employed people may find it easier to get a secured loan
You can spread your repayments over a longer period
Secured loans can be used to help your business
Your credit score can be improved with a secured loan
[H2] Frequently Asked Questions regarding secured loans
[H3] What does loan-to-value (LTV) mean?
The loan-to-value is the maximum amount that a lender will consider lending, as a percentage of the value of the property you are securing the loan on.
If you require a loan of £60,000 secured on a property valued at £100,000 (assuming there is no other finance secured on the property), then the loan as a percentage of the property’s value would be 60% - this is the loan-to-value ratio.
Example One: If you want to buy a property with a value of £300,000 and the mortgage lender offers a maximum loan of a 85% LTV, then the maximum you could borrow against the property would be £255,000. This means you would need a deposit of £45,000.
Example Two: If you own a property valued at £500,000 and have £200,000 left to pay on the mortgage, then you have equity of £300,000.
If you want to have a second charge loan after the mortgage, and want to know the maximum amount you can borrow.
If the lender is operating at a maximum of 75% LTV, then the total amount allowed to be secured against the property would be £375,000 (£500,000 x 75%). The mortgage is already taking up £200,000 of this, so the maximum second charge loan you could get would be £175,000 (£375,000 - £200,000).
[H3] What is equity?
Equity is the percentage of your property that is free of a mortgage or any other loans – in other words, the percentage owned by you.
For example: If you own a property worth £300,000 and you have an outstanding mortgage balance of £150,000 and a secured loan of £20,000, your equity is £130,000.
Calculation: £300,000 – (£150,000 + £20,000) = £130,000
[H3] What is the difference between a secured and an unsecured loan?
Secured loans are attached to an asset – usually a property. As the lender has something to repossess if you default on the repayments, these loans are considered low risk.
Unsecured loans, like a credit cards or personal loans, are not attached to an asset so the lender has nothing to claim in the event of default. Because of this, they are considered high risk and you will generally need a very good credit history and score to obtain an unsecured loan.
To reflect the safer lending, secured loans will generally offer higher loan amounts and lower interest rates than unsecured loans.
[H3] How long does a secured loan take to arrange?
Our aim is to have the whole process from application to completion done in no more than 1 week. For many cases it can all be done in as little as 24 to 48 hours. Most importantly however, we will process your application at whatever pace you prefer.
[H3] How likely am I to be accepted for a secured loan?
The chances of being accepted are often higher than they are for a personal or unsecured loan. As long as you have sufficient equity in your property, a regular income and are not currently bankrupt, you are likely to be accepted.
This is because a loan secured against property is a much safer option for lenders as repayment is guaranteed given the security provided.
We can look at applications if you are currently bankrupt, provided the loan proceeds are being used to clear the bankruptcy.
[H3] What is a second charge?
A second charge is used by lenders who require equity in property as collateral for their loan. The lender who provides the loan will place a ‘second charge’ on your property that sits behind the first charge placed by your mortgage provider. This

KIS Bridging Reviews

4.97 Average
297 Reviews

Highly recommend. We have dealt with various brokers over this past 15 years. Mathew at KIS went above and beyond for us, negotiating reduced fees with lenders. There was never a no from him, always an ok let's try, I will put to the lender. He totally was dedicated to what was best for us. Customer care was outstanding. Highly recommend. St Albans client.

KIS are Extremely Professional and experienced they give a very caring service from start to finish I was kept upto date throughout by the they appointed Mr Neil Andrews who deals mainly with LTM/ equity release side of the KIS businesses he guided us throughout the whole process and explained everything all the way through to completion and even now after completion for any further enquiries etc
I feel he got us the best deal on the market also that fully supported our needs also

His service/ experience in equity release is absolutely outstanding for sure
He one of the nicest chaps I ever spoken to also
The whole process was completed in just over 6 weeks or so

Any queries I have had that I emailed Neil were answered always within hardly no no time at all of sending them also

It absolutely then goes without saying that I am extremely great full to Neil/KIS and I would wholly recommend both Neil/KIS for any one thinking of refinancing etc
Look no further you will be in great hands for sure

Overall stress free, Sam was great, always on the end of the phone, great communication always at hand. Definitely recommend, I will be using them again for sure, 10/10 service.

Phoebe was well informed factual and patient from the onset, supporting me through whole process that was completely new to me, even once it had been passed on to next steps she woukd do follow ups
Brilliant service x

I recently secured a bridging loan through KIS Finance, and the service was outstanding. The process was handled with total professionalism and impressive speed.

My contact was super helpful and incredibly knowledgeable, providing the clear expertise needed to ensure a seamless completion. If you need a professional firm that combines deep industry knowledge with efficient, modern processes, I highly recommend KIS Bridging Loans.

Perfect service - Sam was both efficient and friendly - really appreciated especially with the complication of my being abroad initially - all steps completed well within deadline.

Excellent. Sam was really efficient and professional. Would highly recommend KIS.

Sam is a great asset to KIS, he assisted me on an auction purchase which needed to be completed in matter of days his knowledge & support helped me through this transaction, without his assistance I would’ve lost all my deposit, he also managed to get us a really good rate on a bridging loan to finance the purchase, which was very competitive & not matched by any other brokers.
Keep up the good work, Sam. Thank you once again.

An excellent experience with Sam from KIS from start to finish, supporting me through every stage of the process.

The transaction was processed swiftly and professionally resulting in a hugely positive and seamless experience.

I would highly recommend KIS Bridging Loans and look forward to working with them again in the future!

Very pleased with the handling of our substantial Bridging loan by Matthew which was arranged to provide substantial funds for purchasing a house. Very patient and every question was quickly answered. The lowest rate lender was engaged. Would use KIS again.
Excellant.

Excellent service from start to finish and in super quick time. Solicitor was also efficient. Will use this
Company again without doubt. Thanks

Phoebe and KIS Finance were the epitome of professionalism from start to finish. They clearly understood our position, made well thought through recommendations and then quickly and deligently dealt with our case to esnure we were able to purchase our dream home with no complications! Thanks Team!

Excellent service from KIS Finance from start to finish.
Phoebe was professional, responsive and proactive throughout what became a time sensitive transaction.
Communication was clear and consistent, and the loan completed successfully.
I would happily recommend them to anyone looking for bridging finance.

A professional and cost-effective brokerage service that lived up to its name and kept everything simple to meet our exact bridging loan needs. We shopped around quite a bit before we chose KIS and very glad we did. There are so many brokers out there charging all sorts of exorbitant fees and you can tell they are not always being straight with you. KIS were very relatable, straight talking and genuinely friendly. Would definitely use them again and recommend to others.

We experienced excellent service and flexibility from Phoebe and the team at KISS and would not hesitate to recommend them.

We received a friendly and highly professional service from Phoebe at KIS. We also managed to save a considerable amount when compared to other brokers we approached. I am very happy to highly recommend them.

The team at KIS were incredibly helpful , diligent and professional , I had the need to arrange finance quickly for a property purchased at auction , I first approached two other larger specialist brokers before KIS and it became obvious that I needed a more personal approach , then spoke with the team at KIS who jumped on my case understood the challenges and quickly came up with options , they gave me confidence that they would find the best solution for my situation. A special thank you for Pheobe who was brilliant and even gave up her Sunday to get documents completed in time to meet our deadline, Thank you KIS Finance !

Excellent service throughout by Phoebe who explained everything, made it happen, answered my questions and dealt with many issues that cropped up due to other parties.

My experience was excellent and I recommnd KiS Fianace and in particular Phoebe. Ask for her specifically! What a refreshing change for a finance business to give such good service!

I've just completed a Lifetime Mortgage through Neil Andrews of KIS (located about 300 miles away from me), everything was done remotely, by phone and email. I am a retired IFA (of over 30 years), so I know what I am looking for, and I found the whole process to be transparent, honourable and compliant. Neil was unfailingly courteous, approachable and knowledgeable, and followed up everything. (As a control-freak myself) I was never uneasy, and am really grateful for his thoroughness and attention to detail.

It all started with an informal chat on the telephone. I was enquiring about taking a bridging facility for the first time - from that very first point of contact Matthew has been excellent and a pleasure to work with. He explained everything in a clear and simple manner and was supportive/responsive throughout. I look forward to working with Matthew and KIS again in the future. For me, it's about creating value adding partnerships and KIS will certainly be a valued partner for our business moving forward. Thank You

Sam was excellent, helped me through each stage and explaining what was required. He was also very good at ensuring solicitors acted promptly. I was very grateful for his support throughout. The reason I did not give 5 stars is because he was not always available to talk with on the phone, and others who answered the phone were unable to help, so I had to call back or leave a message.

[H2] What to expect when you call KIS Bridging Loans
Our dedicated team will take the time to fully understand your financial requirements, what you are trying to achieve, your timescale and current circumstances. We will then prepare information about the various options that may be available to you.
Our normal process:

When you first contact us, one of our friendly advisers will ask you about what your requirements are.
We will then ask you some questions about yourself or your business.
Usually within an hour we will quickly provide quotes and full information about the best finance options that are available to you.
Provided that you are happy with what we can offer, we will then arrange your bridging facility for you.

[H2] Meeting us
Although most finance facilities are arranged over the phone and via email, we are able to arrange meetings throughout the UK when required.
In particular meetings in central London can be arranged at very short notice.
KIS Finance, for a fast and friendly service that is kept simple!