Off-Market Property Loans

An off-market property loan is a type of financing that is secured to buy a property that is not listed for sale on the public market.

Off-market properties tend to be sold privately, either directly through the seller or through private negotiations.

The benefit of off-market properties is that they tend to be available only to a select group of people, making them harder to come by.

Some of these properties may not be eligible for traditional loans, or, you may not be able to get one in time to secure the property. That’s where off-market property loans come in.

Companies like Blue Square Capital offer quick off-market property loans up to £2 million, available within 1-2 weeks.

When it comes to securing an off-market property, we understand that sometimes you need capital – and fast.

Our team are able to offer indicative quotes and an initial decision within 24 hours – meaning you don’t waste any time waiting around. And, with up to 15 months to pay off the loan, we give our clients plenty of time to source longer-term financing options or execute their exit plans.

Off market property loans can be a great way to secure a new investment, especially if timelines are tight.

When it comes to the documents we ask for, we typically require:

• Previous company bank statements
• Previous personal bank statements
• Details of costs and financials
• Details of exit strategy
• Property valuation

Every application is then assessed on an individual basis by our underwriters and team members and we aim to provide indicative turns within 24 hours.

Yes, before you apply for the loan, it’s important to have an exit strategy in place. We will want to understand how much you want to borrow, what you plan to use the loan for and how you are going to repay it.

Some common repayment strategies include:

• Selling another property
• Renovating and reselling the property
• Applying for longer-term financing options, such as mortgages.

Once you have your plan in place, our team will review your application.

Blue Square Capital typically offer off-market property loans between £250,000 to £2 million with an LTV of 70%.

The LTV (loan to value) means the percentage of the property price that will be purchased with the loan.

For example, on a property with a valuation of £1,000,000, Blue Square Capital will provide a loan up to 70% of the value, or in this case, £700,000.

When it comes to loans, our key terms include:

Less Competition: Off-market properties are not publicly advertised or listed, which means that fewer buyers are aware that they exist – reducing the competition. This means that off-market buyers are usually in a stronger position to negotiate, potentially resulting in a better price.

Private: Off-market transactions tend to be more discreet, meaning they’re a great option for buyers and sellers looking to keep their business confidential.

Direct Access To The Seller: Off-market deals usually mean direct communication between the buyer and the seller, making it easier to get more flexible terms. This might mean a quicker close or a more competitive price.

No Bidding Wars: Since the property isn’t listed publicly, the price is unlikely to be driven up by multiple bidders.

Potential For Building Relationships: Off-market transactions can be more personal, making it easier to form direct relationships between buyers, sellers, and agents.

Access to Off-Market Investment Opportunities: For investors, off-market properties can give them access to deals that are not available to the general public, which could produce higher returns.

Flexibility – Unlike mortgages, off-market property loans can be flexible and adapted on a case-by-case basis.  

Large Sums – You can borrow up to £2 million in one lump to fund a property purchase.

Quick Decision Making – Compared to mortgages which can take months to complete, bridging lenders like Blue Square Capital can make decisions within 24 hours and can often approve and fund loans within 1-2 weeks.

Blue Square Capital offers rates starting from 0.95% per month which remains fixed through the loan term of up to 15 months.

Other costs to be aware of include:

• Arrangement fees (2% of the loan amount)
• Bank transfer fee (£25)
• Admin fee (£999)
• Valuation and survey fees (depends on property)
• Solicitor fees (depends on project)
• Exit fees (n/a)

What Kind Of Properties Can I Purchase Using An Off-Market Property Loan?

• Rental properties
• Fix-and-flip properties
• Commercial properties (office buildings, retail spaces)
• Distressed properties (in need of renovation)
• Properties combining residential, commercial, and retail uses
• Historical properties
• Waterfront properties and farms

Where Does Blue Square Capital Operate?

Blue Square Capital is based in London but we offer loans all over England and Wales. Our clients are based in key cities like Manchester, Leeds, London, Birmingham, Liverpool and more.

Is Blue Square Capital Regulated or Unregulated?

Blue Square Capital is an unregulated lender. This means that we can approach our borrowers with flexible terms and are able to provide funding quickly. We pride ourselves on closing loans within 2 weeks, offering repayment terms of up to 15 months.

What Happens If I Can’t Repay The Loan?

As part of the application process, we work with our borrowers to ensure that the chances of them not being able to repay the loan are minimal.

However, if circumstances change or you are unable to complete your exit plan, then you may be liable for late fees and penalties. Very often, our customers will refinance before this happens, but if a borrower continues to default, this may end in a repossession of the property.

If you want to find out more about repayment penalties, see our guide around loan repayment here. 

Do Bridging Lenders Run Credit Checks?

At Blue Square Capital, we run credit checks as part of checking the eligibility for a customer. However, that does not mean that people with bad or adverse credit should be deterred. We look at several other factors such as track record, exit plans, prospective property value and the opportunity presented.