Founded in 2000, Octopus started primarily as an investment firm, but over the years, it has significantly expanded its services, including bridging loans.
Since its foundation, Octopus has made a name for itself by focusing on areas that often seem complex or challenging and by aiming to make them more accessible. The company is often praised for the simplicity of its services.
In this article, I will explain the services offered by Octopus Bridging Finance, assessing its strengths, offerings, and where it stands in the competitive world of short-term finance. I will be particularly focused on Octopus’ bridging loan products.
Octopus Bridging Loans
Octopus offers a range of unregulated bridging loans from £50,000 to £1m for both residential and commercial needs.
Loans can be used to quickly secure property purchases, fund refurbishments, raise capital, or refinance existing loans.
Key features include
- Bridging loans from £50k up to £1m, with up to 65% LTV (Regulated) / 70% LTV (Unregulated).
- Rates start from 0.55% per month for terms up to 23 months (for Unregulated Loans).
- No early repayment charges or minimum interest periods.
- A Fast Track service for loans up to £500,000, with reduced legal due diligence.
- Interest can be rolled up or retained.
- No minimum income requirements.
- No exit fee
- Subject to KYC and Title Insurance
Octopus has a great reputation. The company makes the bridging loan application process quick and easy without complicated fee structures or never-ending administrative processes. The “Fast-Track” feature is a great addition if you’re looking to get a quick loan for a relatively low amount.
What are the Eligibility Criteria for an Octopus Bridging Loan?
Here’s the criteria to apply for a bridging loan with Octopus:
| Product | Fast Track Bridging | Standard Bridging |
|---|---|---|
| Minimum Loan Size | £50k | £50k |
| Maximum Loan Size | £500k | £1M |
| Minimum Property Value | £70k | £70k |
| Maximum Property Value | £1M | Subject to Status |
| Location | England & Wales | England & Wales |
| Borrower’s Nationality | UK, EU, Channel Islands, Switzerland, USA, Canada, Australia, New Zealand or BVI | UK, EU, Channel Islands, Switzerland, USA, Canada, Australia, New Zealand or BVI |
| Source of Wealth Profile | Must score “Low” on Octopus Real Estate’s overall risk assement | Must score “Low” on Octopus Real Estate’s overall risk assessment |
| Security Property | Has been continuously used as constructed for over 12 months | Has been continuously used as constructed for over 12 months |
Application Process for Octopus Bridging
Applying for a bridging loan with Octopus is extremely simple.
It starts with inputting your loan’s specificities, such as the amount, term, or retained interest period. This happens directly on Onctopus’ simple Bridging Loan Calculator.
After inputting your details, you can calculate your loan’s terms and get sent an indicative quote by email to know where you stand.
Once your details are confirmed, Octopus will send you an AIP (Approved in Principle) or call you directly to discuss your application and explain the next steps.
Octopus Bridging Loan Rates
Here are the Octopus bridging loan rates for 2023.
Fast-Track Bridging Rates
| Maximum LTV | 0-55% | 55.01-60% | 60.01-65% | 65.01-70% |
|---|---|---|---|---|
| Regulated Rate | 0.55% | 0.65% | 0.70% | ❌ |
| Unregulated Rate | 0.55% | 0.65% | 0.70% | 0.75% |
Standard Bridging Rates
| Maximum LTV | 0-55% | 55.01-60% | 60.01-65% | 65.01-70% |
|---|---|---|---|---|
| Regulated Rate | 0.70% | 0.75% | 0.80% | ❌ |
| Unregulated Rate | 0.70% | 0.75% | 0.80% | 0.85% |
Octopus Reviews and Ratings
The Octopus Group has a great reputation online. Octopus Real Estate earns an ‘Excellent’ TrustScore of 4.6 out of 5 based on over 47 reviews on Trustpilot. The explanation for the low number of reviews is that every Octopus Subsidiary has a dedicated profile on Trustpilot. The vast majority of them have an excellent score over dozens of thousands of reviews.
The majority of reviews (94%) rate Octopus 5 stars. Customers praise the easy application process, the accessibility of the support team to handle the cases and the overall service quality.
2% of reviews are 4 stars. 0% are 3 stars, 0% are 2 stars, and 4% are 1 star. The negative reviews mainly relate to fees they consider too high.
However, negative reviews are marginal compared to the overwhelming positive feedback.
In summary, Trustpilot reviews indicate high customer satisfaction with Octopus’ lending services, owing to fast processing, flexible terms, and helpful staff. While a minority of customers have faced challenges, the overall sentiment toward Octopus is very favourable.
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Octopus FAQs
What types of properties are eligible for Octopus Real Estate’s residential bridging loans?
Octopus Real Estate provides residential bridging loans for properties that the client lives in, plans to live in, or can’t sell before completing a new purchase.
Does Octopus Real Estate provide bridging loans for both commercial and residential sectors?
Yes, Octopus Real Estate provides finance for both the commercial and residential sectors.
How does Octopus Real Estate’s bridging loan approval process compare in terms of speed and flexibility to other lenders?
Octopus Real Estate is known for offering low-interest borrowing products with flexible terms and fast approval.
How competitive are the rates for Octopus Real Estate’s bridging loans compared to other providers in the market?
The rates for Octopus Real Estate’s bridging loans are described as very competitive, with the unregulated bridging loan product offered at a rate of 0.55% per month