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Posts Tagged ‘bridging loan’

Bridge to Let

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What is it?

It’s one or 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 new 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 as we don’t expect this product to be around for long

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.

Searchlight Finance Limited is registered in England and Wales No.07929050 Searchlight Finance Limited is authorised and regulated by the Financial Conduct Authority and is entered on the Financial Services Register (http://www.fca.org.uk/register) under reference 743220. The FCA do not regulate Business Buy to Let Mortgages or most Commercial Mortgages and Bridging Finance. ICO Number Z3109319. Your property may be repossessed if you do not keep up repayments on a mortgage or any debt secured on it.

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