We’re often asked if Nationwide offer bridging loans and, if so, whether they are worth applying for.
In this article, I’ll cover the topic in detail, explaining your options and the best alternatives.
Nationwide does not currently offer bridging loans, and their personal loan service clearly states, in the terms and conditions, that it may not be used for bridging purposes.
However, many other reputable lenders are out there whose rates you could compare. Please us our simple form below to get a quote that comes with no obligation.
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- Loans from £20,000 to £30m plus
- Max 75% LTV first charge 70% second charge
- Secured on Residential and Commercial property
- Adverse credit considered
- Both Regulated and Non-Regulated Bridging Loans
Who are Nationwide, and what do they do?
Nationwide was originally established in 1846 as the Co-operative Wholesale Society (CWS) and later became known as the Co-operative Group. In 1970, the organization underwent a restructuring and its financial services division was formed, which eventually became known as Nationwide.
Nationwide is primarily known for its role as a building society. As a building society, Nationwide operates on a mutual basis, meaning it is owned by its members rather than shareholders. This allows the organization to prioritize the needs and interests of its members.
The services offered by Nationwide include savings accounts, current accounts, mortgages, personal loans, credit cards, and insurance products. They also provide financial planning and investment services through their subsidiary, Nationwide Financial Services.
Nationwide has a widespread presence in the UK with branches across the country, as well as a strong online and mobile banking platform.
Does Nationwide Offer Bridging Loans?
Nationwide does not currently offer bridging loans as part of its financial product portfolio. Instead, Nationwide focuses primarily on traditional building society offerings like savings accounts, mortgages, current accounts, and insurance.
Speciality lending products like bridging loans are not an area of focus for Nationwide. While Nationwide has a large UK presence and offers competitive rates on core banking products, those in need of bridging finance will have to look to alternative bridging loan providers.
There are many reputable specialist lenders that can potentially offer bridging loans at favourable terms for qualified borrowers.
But Nationwide itself does not factor into the UK bridging loan market presently. For short-term bridging finance, it’s best to consult specialized brokers or lenders rather than limiting yourself to major high-street banks and societies.
Eligibility Criteria for Nationwide Bridging Loans
Nationwide Building Society, a well-known UK financial institution, has ceased the provision of bridging loans. However, understanding the typical lending criteria that were in place can still serve as a useful reference for business owners looking into alternative solutions.
Below is a summary of the principal eligibility requirements that were traditionally associated with Nationwide’s bridging loans:
Loan Amount and Term: Nationwide would usually stipulate both a minimum and maximum loan amount, in line with the client’s ability to repay. The loan term was generally short, commonly ranging from a few months to a couple of years.
Property Type and Value: The loans were secured against property, and therefore, the property type and its market value were critical factors. Both residential and commercial properties were considered, with the loan-to-value (LTV) ratio playing a significant role in the approval process.
Credit History: Applicants were required to have a favourable credit history. While specific credit scores were not always mandatory, a solid credit profile with a clear record of timely repayments significantly enhanced eligibility.
Exit Strategy: An explicit and credible exit strategy was essential for a bridging loan with Nationwide. This could have been the sale of the property, refinancing, or other demonstrable means of repaying the loan at the end of the term.
Income and Affordability: Verification of income and a detailed examination of affordability were standard procedures. Nationwide would assess an applicant’s overall financial situation to ensure that they could meet the repayments.
Legal and Regulatory Compliance: Full compliance with legal and regulatory requirements was mandatory. This included adherence to Anti-Money Laundering (AML) regulations and other relevant laws and standards.
The Application Process for Nationwide Bridging Loans: A Step-by-Step Guide
While Nationwide Building Society does not currently offer bridging loans as part of its financial product portfolio, we can outline the typical application process one might expect when applying for a bridging loan from other financial institutions.
Step 1: Initial Consultation and Pre-qualification
The first step in the application process is generally a preliminary consultation, either online or in-person, where basic eligibility criteria are assessed. This often includes an examination of your credit score, income, and the purpose of the loan.
Step 2: Provision of Required Documentation
You’ll typically be required to submit a range of documents such as proof of identity, proof of income, and details about the asset being used as security. The nature of the required documentation can vary depending on the lender’s specific criteria.
Step 3: Property Valuation
If the bridging loan is being used for a property transaction, an independent valuation of the property is usually mandated. This helps the lender assess the Loan-to-Value ratio (LTV) and determine the risk involved.
Step 4: Detailed Risk Assessment
The lender performs a comprehensive risk assessment, which may involve evaluating your exit strategy, the feasibility of the project, and other financial variables.
Step 5: Loan Approval and Offer
After successful risk assessment, a formal loan offer is generally made. This outlines the terms of the loan, including interest rates, fees, and the repayment schedule.
Step 6: Legal Due Diligence
Both parties usually engage legal representation to review the terms of the loan agreement. This ensures that all regulatory requirements are met, and the terms are understood by both parties.
Step 7: Fund Disbursement
Upon agreement and signing of the loan documents, the loan amount is disbursed, typically via bank transfer, to the borrower or directly to the project for which the funds are intended.
Step 8: Loan Servicing and Repayment
The borrower is required to make regular interest payments based on the terms outlined in the loan agreement. A clear exit strategy should be executed to repay the loan at the end of its term.
Nationwide Bridging Loan Rates: Let Us Find You the Perfect Alternative.
At Business Expert, we offer a free concierge service for businesses seeking bridging finance. With years of experience, and our fingers on the pulse of the bridging market, let us help broker the perfect deal at zero cost to you.
We charge nothing for our broker service, nor will it affect the rates you’re offered from the lenders. Instead, we’re paid a simple commission as the introducers mean for you; it’s a convenient, effective way to access the best whole-of-market rates.
High Street Bank Alternatives to a Nationwide Bridging Loans?
Very few high street banks now offer bridging loans, and those that offer them only to existing customers.
In short, if you want bridging finance, you will need to use the specialist lending market, which now has some very well-established and credible brands.
Here is our current list of bridging providers; we can provide quotes from all of them.
- Shawbrook Bridging Loans: Shawbrook is renowned for its customisable loan options, making it a strong contender for those with unique financing needs.
- Precise Bridging Loans: Specialising in swift approvals and fund disbursement, Precise is an ideal choice for time-sensitive financial requirements.
- Lendinvest Bridging Loans: With a strong emphasis on property financing, Lendinvest offers bridging loans that are particularly suited for real estate transactions.
- Octopus Bridging Loans: Octopus focuses on tailored bridging solutions for both residential and commercial property projects, offering flexibility and rapid approvals.
- UTB (United Trust Bank) Bridging Loans: For those with more complex financial scenarios, UTB offers specialised bridging loans that can be customised to specific needs.
- MT Finance Bridging Loans: Known for its straightforward application process, MT Finance is a reliable option for those in urgent need of bridging finance.
- Spring Finance Bridging Loans: Offering competitive rates and a range of loan options, Spring Finance is a versatile choice for different financial gaps.
- West One Bridging Loans: Providing a wide range of bridging finance solutions, West One is known for its flexibility and quick decision-making.
- Glenhawk Bridging Loans: Specialising in non-bank lending, Glenhawk offers a streamlined approach to bridging finance with transparent terms.
- ABC Bridging Loans: ABC focuses on quick approvals and flexible terms, making it a straightforward option for short-term financing.
- BFS (Bridging Finance Solutions) Loans: With a variety of loan options, BFS is designed to meet a diverse set of financial scenarios.
- Affirmative Bridging Loans: Known for its fast approvals and tailored solutions, Affirmative is suitable for those with time-sensitive financial needs.
- MS Lending Bridging Loans: MS Lending offers a comprehensive range of bridging loans, catering to both individual and commercial clients.
- Mercantile Trust Bridging Loans: With a focus on customer service and reliability, Mercantile Trust is a reputable alternative for bridging finance.
- Roma Bridging Loans: Specialising in property bridging, Roma offers loans tailored for both the residential and commercial real estate markets.
- Somo Bridging Loans: Leveraging technology to simplify the loan process, Somo offers an efficient and user-friendly application experience.
- Catalyst Bridging Loans: Catalyst provides adaptable bridging finance solutions with a customer-centric approach.
- Mint Bridging Loans: Known for its diverse range of loan options, Mint caters to various short-term financing needs.
- Octane Bridging Loans: Octane stands out for its rapid approval process and flexible loan terms.
- Ampla Finance Bridging Loans: Ampla Finance offers transparent terms and competitive rates, making it a noteworthy alternative for bridging finance.
Are Bridging Loans a Good Idea?
Bridging finance is an ideal solution for short-term funding where there is a clear exit strategy and a healthy profit margin.
Where the loan fits these criteria, for example, a property deal you are likely to miss without fast funding, then bridging loans are a good idea.
Of course, since commercial bridging is unregulated, it does come with a caveat, especially around the terms and conditions. Stories abound of borrowers who have found themselves locked into finance with additional exit fee charges or other hidden costs which less the overall profitability of their transaction. As such, it pays to do particular due dilligence where any unregulated finance is concerned, especially something like bridging which comes with relatively high monthly charges.
How Much Would a Bridging Loan Cost?
Bridging loans are generally an expensive form of finance, as befits their short term nature.
Interest rates, which are charged monthly, range from around 0.4 to 2.5%
Compare bridging loans from Nationwide and all the leading lenders
We specialise in offering highly competitive bridging loans for both residential and commercial scenarios.
Thanks to our partnership with Fluent Money, we can access rates and deals not widely available to the UK marketplace.
You can borrow £26,000 to £25,000,000, and we can handle both open and closed bridging, including for those with bad credit, in some cases.