buy to let bridging
These 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 do not 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 are buying a property – whether commercial, residential, or mixed – to rent in the future but when you cannot 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.