Bridge to Let
What is a Bridge to Let loan?
For the most part, Bridge to Let products are identical to standard bridging loans. The only difference being that in the case of a Bridge to Let mortgage, the service is exclusively open to the Bridge to Let market. The idea being that Bridge to Let products provide existing or new landlords with the opportunity to purchase a property they intend to let out, though don’t currently have the financial means to complete the transaction.
The vast majority of Bridge to Let mortgages can be used to purchase residential and commercial properties alike, the loan typically being repaid when the landlord moves over to a traditional mortgage and lets the property out. Such loans are offered on the condition that the borrower is able to achieve 100% rental coverage, meaning that their rental income should be able to cover their repayment obligations as an absolute minimum.
When would you use a Bridge to Let loan?
Just as is the case with bridging loans, Bridge to Let products are designed to be significantly more accessible when timeliness is of importance. For example, if you are interested in purchasing a Bridge to Let and come across an outstanding opportunity that will only be available for a short period of time, conventional loans and mortgage products are of little use. Often taking weeks or even months to complete, a traditional mortgage isn’t suitable where time is at a premium.
By contrast, Bridge to Let mortgage products from independent lenders can be paid out considerably faster. Much quicker than it would take to arrange a traditional mortgage or even pay an initial deposit, these are the kinds of flexible financial solutions that respond to the needs of today’s Bridge to Let business owners.
They can also be highly useful for those looking to purchase properties at auction and need to come up with the required payment as quickly as possible.
Qualification and Security
Given that Bridge to Let products are typically secured on the assets of the borrower, the application process can be comparatively quick and easy. Just as long as you have the required collateral to secure the loan, you are almost guaranteed to qualify. Even if you do not have a particularly strong credit score or current proof of income, your application will still be considered on its own individual merit.
Completion of a Bridge to Let mortgage typically takes between three days and three weeks, with the minimum loan value in the region of £30,000. Exactly what kinds of assets are considered acceptable varies from one lender to the next, but will usually include the following examples:
- Residential property
- Commercial property
- Multiple occupation properties
- First and second charge security
As a fully independent broker, we can provide you with comprehensive access to the very best deals on the UK market from the country’s most dynamic lenders. Whatever your priorities and current financial position, we can help you explore a variety of Bridge to Let products to suit all purposes across the board.
For more information on any of our services or to discuss Bridge to Let in more detail, get in touch with a member of our customer support team today.