BRIDGING LOANS

Why use Bridging finance?

1. Tight deadline- Most auction houses have tight deadlines for completion and in the current market these are very difficult to achieve using traditional buy to let mortgages. Our lenders provide funding within 7 to 10 days giving you peace of mind. For further assurance we can conduct a valuation before the auction and provide indicative terms, so you can go to auction knowing exactly how much you can bid and how much the funding will need.

2. Property un-mortgageable in its current state- Often properties at auction are in need of works or refurbishment. Having no kitchen or bathroom for example can mean that traditional Buy to Let lenders will not lend on a property or will ask for a significant retention of funds. Our lenders will take a commercial view and, often lend without the retention. Our funding enables you to do the necessary refurbishment work, bringing the property up to the required standard needed for a Buy to Let refinance deal.

3. Add value before refinancing- For many investors, using bridging finance provides the best way to recoup deposit/refurbishment funds and therefore maximise return on investment. Bridging funds are used to purchase the property and then upgrade/refurbish giving an uplift in value. Upon revaluation you are able to re-finance against a higher value, which in most cases results in recouping all of the deposit and refurbishment funds. Using a bridge means the purchasers funds are “tied in” for a very short period of time, cash flow is maximised.

4. Credit repair- In the current market a poor/adverse credit profile will make obtaining a mortgage very difficult and/or extremely expensive. A bridging loan of between 6 -9 months will give you the opportunity to repair your credit file before re-financing into a long term mortgage at a more competitive rate.

5. Buying a property to sell quickly- When an investor is buying a property to sell quickly (flip on) the fees associated with a mortgage (set up, Interest, ERC) can outweigh the costs of a bridge. Some of our lenders have no minimum term enabling you to sell quickly without paying further interest.

6. Sales under Value- In the current market many purchasers/investors are buying property below market value. Our lenders will take a commercial view and in certain circumstances lend against the “Open Market Value” of the property. By lending against the open market value, the deposit needed by you is reduced again easing cash flow therefore increasing your return on investment and making the auction purchase achievable.

YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE