Bridge to Let Mortgage UK

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Bridge to Let Mortgage

Often homeowners and property investors find themselves in a situation where they cannot buy a property because it needs some refurbishment work done to make it mortgageable. Furthermore, they are unable to raise adequate money to buy and do the refurbishment required. Whether you are planning to purchase a new buy-to-let property development or get your property refurbished, you may benefit from using a bridge-to-let mortgage.

Bridge-to-Let Mortgages from BridgingFinance4U

At its most simple, bridge to let products are pretty similar to standard bridging loans with a difference where lenders require borrowers to have an efficient exit strategy in place before they lend out money. This either means selling your property or refinancing it into another mortgage type.

It is particularly designed for buy to let bridging loan market, allowing property owners and real estate investors to bridging loan buy to let a property they would otherwise struggle to raise funds through a traditional mortgage. It finance allows landlords to raise funds for the initial purchase of rental properties, such as a renovation or undertaking further works. The loan is typically repaid when the landlord lets the property out and moves to a traditional mortgage. This loan is offered on the condition that rental income should be 100% to 145% of rental income depending on the lender’s criteria.

Whether you are a landlord or investor, BridgingFinance4U can help you provide short-term finance options when you are looking to purchase a property for renting. Our  finance combines the best of both worlds, offering short-term financing and a guaranteed exit option.

Our bridge to let mortgage offers:

• Finance from £10,000 to £5m for the property
• Loan duration up to 3 months
• Interest roll-up facility
• Competitive interest rates
• Quick approval
• Consideration of numerous property types

How Bridge to Let Loan Can Benefit You

With recent amendments in the lending policies, It can be taken out by the first-time landlords at higher LTV’s. It finance is a special product whose main benefit is that it combines buy-to-let mortgages and bridging loans with the same lender. Hence, this provides borrowers with more certainty of the exit. The two main benefits of the it’s over a traditional mortgage broker is that they have faster turnaround times and they come with a pre-approved exit strategy.

Fast Turnaround Time

If time is crucial for you, bridging finance can be processed and funds can be acquired much faster than traditional mortgage broker. This makes them perfect for situations when you wish to access funds in a few days for short-term to accomplish long-term goals.

Pre-approved Exit Strategy

The main benefit of the, it comes with a pre-approved exit strategy. That means once it is purchased, you will let out the property to the paying tenants to repay the mortgage. Since the exit strategy is already included in the agreement, you can move from a bridging loan to buy to let mortgage without consulting another lender. You don’t have to apply separately for bridging loans and buy to let mortgages with different lenders.

Buy a property at the auction

As soon as the hammer slams down, you will be required to pay a 10% deposit (bridging loan for buy to let deposit) along with other fees. The balance amount will be usually due in 28 days. In this case, It finance can help you complete the auction property purchase successfully.

Break Property Chain Issues

You have come across your dream home, but you are unable to purchase it because you don’t have sufficient funds and are waiting for the sale of your current home. With a us, you can buy your dream home before selling your existing home. It bridges the gap and allows you to buy a property without having to wait for the current property to get sold. Once you sell your existing property development, you can pay back the mortgage in full.

Buy and Renovate the Property

Renovating an old or wrecked-out property can require great effort, but it can be an excellent investment opportunity if you have a vision of how you will transform it into a buy-to-let property.

However, uninhabitable properties are often difficult to mortgage. That is because in the unfortunate event that the homeowner fails to make the payment, the possession of the unfinished home may make it difficult for the lender to sell and get their money back.

But, with a bridge-to-let loan high street, landlords can not only buy the property but also get temporary funds to carry out renovation tasks.

How Much You Can Borrow with a Bridge to Let Mortgage?

The maximum amount you can borrow is dependent on several factors, and it is pretty different from how traditional mortgages work. However, it is largely determined by the rental income you will be able to generate from the property you purchase.

Generally, bridging finance requires you to make monthly interest payments to repay the loan or if there are no monthly payments, the interest is added when you repay the amount in full.

The key factors that decide your maximum bridge to let mortgage amount are:

• Loan to Value (LTV) – LTV is the maximum loan amount you can borrow against your property value. For example, if a lender agrees to bridge a £200,000 property to 80% LTV, they will cap lending at £160,000.
• Condition of the property – If the property is not in good condition, the lender may lower the LTV cap.
• The term of the loan – If you are taking out a bridge-to-let loan for a longer term duration, it can lead to lower LTVs.
• Exit strategy – If you don’t present a clear exit strategy, the lenders may not lend at all.

When You Should Opt for Bridge to Let Finance

Unlike traditional mortgages that take months to get approved. Bridging finance is a short-term loan that can be processed in a couple of days or weeks. It is a specifically designed product that is significantly more accessible when time is the critical factor. For instance, when you come across an exceptional opportunity that will be only available for a short period and traditional mortgage loans are not suitable. In this case, It can help you secure the deal much faster.

Bridge to let mortgage can be used in a number of circumstances, such as:

• When your property requires refurbishments
• Buying a property at the auction
• You wish to add value to your buy-to-let
• Buying commercial buy-to-let property

How Do You Succeed in Your Bridge to Let Mortgage Application?

Lenders assess every situation independently, and they may ask you questions such as:

Are you refurbishing the property for the first time or have you done it before?

Lenders often ask this question when you opt for a mortgage for renovation work. This helps them understand what level of refurbishment work, such as structural, interior, plumbing, and lighting need to get done.

Will you be able to sell the property before your loan term ends?

When you apply for the finance, probably every lender will inquire about whether you have an appropriate exit strategy before approving your application.

If paying monthly, how are you going to afford interest payments?

Lenders will want to know your monthly income if you choose to make monthly interest repayments.

Do you have any assets other than this?

Some lenders may want to know if you have other assets that can be used to secure funding. If you have no other property than this, some lenders may reject your application.

Can You Opt for Bridge to Let Loan With a Bad Credit Score?

Many landlords are worried that poor credit score can affect their chances of getting approved for the bridge-to-let mortgage. However, the good news is that there are several lenders who specialize in serving. All types of borrowers need extra help with their applications. When you consult the right lender, you can still secure funds despite poor credit commitments, mortgage arrears, and defaults.

A bad credit score will limit your lending options and reduce your chances of getting approved. But it doesn’t mean you will not be able to take out the loan. Every lender has its own lending criteria that they use to assess someone’s financial condition and their ability to repay the loan. If you fit their criteria, your application will get approved regardless of your credit score.

Let BridgingFinance4U Help You With Bridge to Let Mortgage

If you are looking for a bridge to let a mortgage high street in the UK. Bridging Finance 4U can provide bespoke, enhanced, and exclusive bridging solutions according to your needs. As a fully independent bridging loan provider. We can help you get the best rates from the most promising lenders across the country.

Moreover, we work with highly experienced bridging finance experts who can provide you with the right guidelines regarding. How to apply for the as well as take care of the entire lending process. Whatever your current financial condition or priorities, our experts can help you explore all products that suit your needs. Do you require a bridging finance quote before planning a loan? Bridge-to-Let mortgage lenders consider the bridging element as a short-term solution for borrowers aiming to transition to long-term rental arrangements.

We provide in the following locations London, Tottenham, Wood Green, Cuffley, Epping, Edmonton, London Borough of Waltham Forest. In this area Potters Bar, Cheshunt, Ilford, Hatfield, Enfield, Waltham Abbey, Hertford, Barnet, Broxbourne, Buckhurst Hill, Waltham Cross, Edgware, Finchley.