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Risk Warning & Suitability Statement

 

Please read carefully before proceeding.

1. Headline Risk Warning (all users)

  • Bridging loans are short-term, high-cost secured loans.
  • They are not regulated by the Financial Conduct Authority (FCA).
  • Your property may be at risk of repossession if you do not keep up repayments.
  • You must have a clear and realistic exit strategy before taking out a bridging loan.
  • If you are in doubt, seek independent financial, legal, or tax advice.

2. Suitability – Borrowers

Bridging finance may be suitable if you:

  • Need urgent, short-term funding for business or investment purposes.
  • Understand and accept that rates and fees are higher than conventional mortgages.
  • Have a credible exit strategy (e.g. refinance, sale of property, other agreed repayment source).
  • Are not seeking consumer credit for personal use.

Bridging finance is not suitable if you:

  • Cannot demonstrate how you will repay within the loan term.
  • Expect or require long-term, low-cost borrowing.
  • Are not prepared for the risk of repossession.

3. Risks for Borrowers

  • Higher Costs: Interest and fees are significantly higher than standard lending.
  • Short Term: Loans usually last 1–24 months. They are not a long-term solution.
  • Exit Strategy Risk: If your planned exit fails (e.g. refinance declined, property doesn’t sell), you may default.
  • Property Market Risk: Falling property values could reduce equity and affect your ability to exit.
  • Fee Liability: You may be liable for arrangement, valuation, legal, and exit fees even if the loan does not proceed.

4. Risks for Investors (if applicable)

  • Capital at Risk: Lending is secured, but recovery depends on borrower repayment and property values.
  • Illiquidity: Investments in bridging loans are not easily sold or transferred.
  • No FCA Protection: As non-regulated products, there is no recourse to the Financial Ombudsman Service or FSCS.

5. Risks for Brokers & Intermediaries

  • You act as an introducer only, not as an agent of LendFirst.
  • You must ensure clients receive and understand this risk warning.
  • You must disclose any commissions or fees you receive to your client.
  • Misrepresentation, non-disclosure, or failure to follow these requirements may result in termination of your relationship with LendFirst and potential liability for losses.

6. General Disclaimers

  • All terms (interest rates, LTVs, fees, and criteria) are subject to change. Illustrations are for guidance only.
  • LendFirst provides no financial advice. It is your responsibility to assess whether bridging finance is suitable.

Independent professional advice (financial, legal, or tax) is strongly recommended before entering into any agreement.