February 2019
By Alan Cleary, Managing Director, Precise Mortgages
Bridging finance has become increasingly popular in recent years with buy to let investors looking for a flexible short-term borrowing option. Recent research has found that bridging lending totalled more than £4bn in 2018 - an increase of 14.8% on 20171.
A raft of regulatory and taxation changes and a generally flat housing market, coupled with economic uncertainty, has resulted in landlords looking at other investment opportunities and alternative ways to maximise their rental yields and increase capital value.
One of the ways landlords have been doing this is by refurbishing an existing rental property or buying one which needs improvement at auction for below market value. The problem many of them have traditionally faced is securing the finance they need to carry the work out. This is where bridging finance could be the ideal solution.
No longer solely the reserve of homeowners who need to complete on the purchase of a new home before selling their current one, bridging loans are now used by customers who want to renovate or refurbish a property before selling it on, people looking to buy a property at auction or those who need finance to buy a property when a chain breaks down. With more lenders entering the market, the sector is more professional, competitive and affordable than ever – Precise Mortgages now offers rates from 0.49%, our lowest ever rate.
Precise Mortgages offers two types of bridging loans: regulated and non-regulated. A regulated loan is for a property that is being lived in by the borrower or their immediate family. Customers choosing a regulated loan can have a term between 1 and 12 months. A non-regulated loan could be the answer if your customer is an experienced property investor who wants to extend or improve their portfolio. Customers opting for a non-regulated loan can have a term between 1 and 18 months. Precise Mortgages also offers Automated Valuation Models and joint legal representation to help speed up cases.
The specialist lender has also recently launched its Refurbishment Buy to Let proposition which offers customers the best of both worlds – the flexibility of bridging finance which enables a property requiring refurbishment to be purchased together with the peace of mind of an exit onto a long-term buy to let mortgage once the work has been completed.
The bridging element is available up to 75% LTV. Customers can choose from a range of Precise Mortgages’ Buy to Let Mortgages with rates starting from just 2.89%2. No mortgage repayments are required whilst the refurbishment works are being completed.
Suitable for a range of landlords, including personal, limited company and HMO applicants, the proposition is supported by a streamlined process designed to make placing a case as easy as possible.
To find out more, visit www.precisemortgages.co.uk, speak with their sales team or call their dedicated support team on 0800 116 4385.
Source:
1 https://bestadvice.co.uk/15-growth-for-bridging-market-in-2018/
2 Rates correct as of Friday 22nd February