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Intermediary SiteThese are Bridging Loans aimed specifically at the buy-to-let market. The fixed-term loan is used to secure a property that you intend to rent out but don’t have a basic mortgage or deposit organised.
You can use them for either commercial or residential properties. The exit strategy would be to refinance onto a conventional Buy-to-let mortgage, and renting the property out either fully or in part.
The loan would be based on being able to achieve 100% rental coverage. This means that your potential rental income should be equal to your payments.
Can be used when you’re buying a property – whether commercial, residential or mixed – to rent in the future but when you can’t initially afford the deposit or need to move fast.
As the buy-to-let market is a competitive one, moving quickly can be key to securing the right property before other investors can. This can sometimes mean moving before you have a mortgage or deposit in place. In these situations, a Bridge-to-Let loan could be useful.
They can also be useful for buying properties at auctions, properties that need work to add value or ones you need to move quickly on.