What is it?
It’s two products with the same lender. The first part is a short term/bridging loan to enable you to purchase the property and refurbish it. Once complete the second part allows you to take out a long-term mortgage against the increased value and rent.
Example
• Purchase Price £200,000 – initial loan £150,000
• Cost of works £30,000
• After works value £300,000 – BTL mortgage of £225,000 at 75% LTV
• Term to complete works 2 months
• After works rental £15,000 pa
Process
Purchase property with a loan of 70% -75% of current value
Complete the work with your own funds
Apply for the BTL mortgage 2 weeks before work is completed
BTL mortgage agreed subject to updated valuation
Valuation carried out and confirms £300,000 value
New mortgage agreed at 75% – 80% of increased value
Contact us now to see how we can help you.
All products are aimed at UK business BTL landlords and subject to underwriting. Your home may be repossessed if you do not keep up repayments on a mortgage or any debt secured upon it.
Tags: Bridge to Let