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Bridging Loan Advice


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Have spent a few good hours reading through various posts and would appreciate any advice from anyone who has used a broker/company for a Bridging Loan and would recommend them.

I am hoping to use cash and a bridging loan for my first project and have in mind a BTS with a general refurb required, hopefully reasonably straightforward as my first project and would be aiming for a quick turn round rather than holding out for maximum ROI.

My way of thinking is to achieve this and prove to myself it can work will give me the experience and confidence to plan a longer term strategy

Thanks in advance

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Hi there,

I'm aware that property seminars/courses/coaching sessions, etc. recommend "flipping" (buy-refurb-sell quickly), but I always feel for the poor buyer who will want to buy it off you. Lenders generally require that the seller (!) had owned the property for at least 6-12 months prior to selling the property and if this is not the case, your buyer's mortgage options will be rather limited... It's possible, don't get me wrong, but the buyer will have limited options available to them.

Other than this, indeed it's best to speak to a broker, who will be able to get you a bridging loan based on the property particulars and your situation.

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  • 1 month later...

With some lenders, you can remortgage within 6 months but more will do it after 6 months. Which figure they work off varies. Some end value, others purchase price and others a percentage of total costs (refurb +purchase + fees)

Usually, within 6 months rates are slightly higher.

Regards Simon

Searchlight Finance Ltd

T:01565 654005

 

Landlord and specialist property finance advisor only dealing with investors, landlords and developers throughout the UK and beyond.

Buy to Let - Commercial Finance - Bridging Loans - Development Finance - HMO Finance - Refurbishment Loans - Multi Let - Limited Company - Student Lets - Portfolio Finance

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