'Bridge to Let' finance product launched

The typical use of a bridging loan is to buy a property that is unmortgageable. A standard journey for a Bridging loan borrower is to buy a property using a Bridging loan, complete some renovations, get a tenant and exit the bridging loan via a Buy to Let mortgage. This has meant there are two finance applications - the Bridging loan and the BTL mortgage - and therefore two sets of fees so the launch of a product called the Bridge to Let that allows the borrower seamlessly transition from a Bridging loan to a Buy to Let should be welcomed by many. So who is this product aimed at:

• BTL investors who are refurbishing a property that they then with to rent out
• BTL investors who want to refurbish a property and re-invest the profits
• Even first time buyers are eligible

The process is quite straight forward in that once you take a bridging loan, after 4 months you will have the option to switch it into a Buy to Let mortgage by giving at least 28 days' notice - simple. All borrowers who take a bridging loan with the lender offering this product will have this option when they take their bridging loan so if the refurbishment work can be done quickly, it will pay the investor greatly to avail of this option. Up to 75% of the post-refurbishment value is available as a BTL mortgage (max gross loan is £1,000,000) so if the refurbishment work is extensive, an increased loan amount is potentially available based on the new higher value of the property. The rates on the bridging loan will depend on the LTV and other details of the project but they start at 0.80% pm for low LTV deals and the BTL rates start at 3.89% up to 75% LTV so this makes it quite competitive. In addition, for some deals the lender is also offering a free legals and valuation service so this is really quite an attractive option for many borrowers. Of course the option to switch to a BTL mortgage after 4 months is just that: an option. You don't have to do it and you don;t even have to refinance with the same lender if you can find a better deal elsewhere meaning this product is flexible as well as competitive. At Choice Loans we can advise you on your bridging loan options and determine f this deal is the best for you. To speak to an adviser please either call us on 0845 1260350 or complete our Bridging loan enquiry form here and we will call you.