Help Desk

Bridging Loan 
A short-term loan secured against property, typically used to quickly
raise large sums for purchases, refurbishments, or covering gaps
between property transactions.

Auction Finance 
Fast-access finance for buyers purchasing property at auction. Its key
advantage is the speed at which funds can be released.

LTV (Loan-to-Value) 
The ratio of the loan amount to the property’s value or purchase price.

First Charge 
The primary legal claim on a property. The first charge lender must be
repaid before any other parties if the property is sold or repossessed.

Second Charge 
A secondary loan secured against a property, ranking behind the first
charge. It uses any remaining equity after the first charge has been
accounted for.

Capital Raise 
Raising funds against a property the client already owns, often used for
purchasing additional property, settling debts, business use, or
improvements.

Freehold 
Full ownership of a property and the land it sits on.

Leasehold
Ownership of a property for a fixed term, subject to ground rent. A lease under 50 years can negatively affect property value.

Full Valuation
An in-person inspection by a valuer to assess a property’s market value and suitability for lending.

Desktop Valuation
A valuation carried out remotely using online data and public records.

AVM (Automated Valuation Model)
A digital system that estimates property value using data such as comparable sales, market trends, and local information.

Decision in Principle (DIP)
A preliminary approval based on provided information. It is not legally binding and may change upon full application review.

Credit Search
A review of a borrower’s credit history to assess their ability to manage debt.

Gross Amount
The total loan amount, including interest and fees.

Net Amount
The actual sum received by the borrower after deductions.

Retained Interest
Interest deducted upfront from the gross loan amount by the lender.

APR (Annual Percentage Rate)
The yearly cost of borrowing, including interest and fees.

Bank of England Base Rate
The interest rate set by the Bank of England, often used as a benchmark for loan rates.

Exit Strategy
The planned method for repaying the bridging loan e.g: selling the property after refurbishment.

Additional Security
Extra collateral offered by the borrower to increase the loan amount or improve terms.

Term Length
The agreed duration for repaying the loan.

Arrangement Fee
A fee charged by the lender for setting up the loan.

Arrears
Missed or late loan repayments resulting in a debt owed to the lender.

Unencumbered
A property with no existing loans or mortgages secured against it.

Land Registry
The official government record of property ownership and any legal interests affecting the land.

County Court Judgment (CCJ)
A court order issued when an individual fails to repay a debt, negatively affecting creditworthiness.

Commercial Property
Property used solely for business activities.

Semi-Commercial Property (Mixed-Use)
Property that includes both residential and commercial use, such as a shop with a flat above.

Land
A plot of undeveloped or vacant land that may be used for residential or commercial development.

HMO (House in Multiple Occupation)
A property rented by three or more unrelated tenants who share common facilities.

Indemnity Policy
An insurance policy covering financial risks due to defects or issues in a property’s legal title.