Financing a flip

A flip is buying a property and then selling quickly, hopefully at a profit. It may be a refurbishment to increase the value or you may just be trading property. There are only two ways to finance these:

  • Cash, which maybe from a remortgage of another property.
  • Bridging Finance.

Don’t use a mortgage to finance them. A mortgage is long term finance  and using long term money for a short term purpose can seriously affect your future prospects of getting finance.

Lenders look at your credit file to see when mortgages are taken out and repaid. If they identify that you are using mortgages for the wrong purpose they will refuse to lend to you.

If you are applying for a BTL mortgage for this type of transaction don’t as it’s mortgage fraud. We have a large panel of lenders who can provide bridging finance for this type of purchase.



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.