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What is a Residential Bridging Loan?
A residential bridging loan is a short-term loan that can help you secure the property, so you can perform the light refurbishment works ready to refinance onto a buy to let mortgage.
We can help you find a Competitive Residential Bridging Loan under £50,000!
Please note, loans under £50,000 are only applicable to residential bridging loans, not standard Buy to Let mortgages. For more information on standard BTL mortgages, please click here.
Have you found an investment property that needs a light refurbishment but haven’t been able to find a lender because the loan size is too small?
We have access to a lender who will lend on properties valued under £75,000, provided the loan amount is £40,000 or above.
This product is ideal for those low-value properties that do not meet many lender’s minimum loan sizes or property values. This could be particularly beneficial for those lower-priced properties found towards the North! (Please bear in mind, that the minimum property value would be £53,500 to be eligible for this product).
Most lenders will charge a premium for smaller loans. However, the good news, is that this lender will not discriminate against smaller loans and you will not pay a higher interest rate!
This product allows you to carry out a light refurbishment, which can consist of decoration, a new kitchen/bathroom, and minor remedial works. The works must not require any changes in planning.
Residential Bridging Loan Product Benefits
• Rates from 0.69% per month
• No minimum interest period
• Maximum term of 24 months
• Option for retained interest resulting in no monthly payments
• 75% – 85% LTV lending for refurbishment costs (providing the total loan does not exceed 85% LTV of the day one purchase price or 65% LTV of the post works value)
Recent Example: allowing the client to carry out £15,000 of works
| Purchase Price | £53,500 |
| 85% Loan to Value (LTV) | £45,475 |
| Interest Rate (per month) | 0.94% |
| Gross Loan Inc Arrangement Fee | £46,384.50 |
| Monthly Payments | £436.01 |
How can Advocate Finance help?
We often deal with residential bridging loans, having completed many for our clients in the past. Once the light refurbishments are completed, we can also help refinance the property on a buy-to-let mortgage.
Here at Advocate Finance, we are experts in bridging loans, property development loans and buy to let & commercial mortgages, so if you are looking to purchase or refinance one of your existing investment properties, please get in touch.
We provide a FREE assessment on all our services.
Please contact me directly for more information, or use the Get in Touch With Us Today feature at the bottom of this page.
