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BUY-TO-LET BRIDGING FINANCE

FAST BRIDGING FINANCE FROM £500,000 WITH NO UPPER LIMIT

BUY-TO-LET

WHAT IS A BRIDGE-TO-LET LOAN AND HOW DOES IT WORK?

Bridge-to-let loans in the UK are a specialised form of financing that combines the features of bridging loans and buy-to-let mortgages. They are designed for property investors looking to purchase and refurbish rental properties before transitioning to longer-term financing.

Buy-to-let property has been an established option for property investors for many years. However, getting finance to purchase these types of properties can be challenging, as the criteria for buy-to-let mortgages can be quite comprehensive.

When an investor identifies an attractive property, the bridge-to-let loan provides immediate funds to facilitate the purchase and necessary refurbishments. This type of loan is fast to arrange, catering to the urgency often required in property transactions.

BUY-TO-LET

USING A BUY-TO-LET BRIDGING LOAN

Choosing a bridging loan for a buy-to-let investment offers several key advantages:

  • SPEED. Bridge-to-let loans are usually approved within a short timescale allowing property investors and developers quick access to funds.
  • FLEXIBILITY. Loans can be used for a variety of property types, including those that may require extensive refurbishment.
  • RENOVATION COSTS. Bridge-to-let loans can cover not only the purchase cost of the property but also the renovation costs, making it easier to improve and upgrade the property.
  • AUCTION PURCHASE. Buy-to-let investment loans can be used for purchasing properties at auction which are presently not habitable. 
  • DEPOSIT. If investors are struggling to raise funds, using a bridging loan for a buy-to-let deposit helps borrowers in securing their purchase, whilst also providing a more realistic time frame within which to obtain longer-term finance.

BUY-TO-LET

WHY CHOOSE NOVELLUS?

  • Novellus offers custom-tailored bridging finance solutions which align perfectly with each investor’s specific needs and investment strategies.
  • No external approval is required on our terms meaning funds can be offered and issued quickly.
  • There are no real upper limits to borrowing – Novellus offers financing from £500,000 with no maximum limit.
  • Unlike most traditional mortgage lenders, Novellus does not discount uninhabitable properties and will consider non-typical properties and conversions.
  • As an independent lender that uses its own capital, Novellus is flexible in considering the specific circumstances around the asset and borrower when issuing terms.  
  • The borrower can repay the loan at any time without incurring any early repayment fees (save for the interest payable during the repayment notification period).

BUY-TO-LET

KEY BUY-TO-LET LOAN CONSIDERATIONS

There are several key considerations borrowers have to be aware of:

  • Exit strategy. It is essential to have a viable exit strategy, either refinancing the property with a longer-term buy-to-let mortgage or selling the asset during the loan term.
  • Loan Term. Typically between 6 and 18 months.
  • Amount. The amount borrowed typically depends on existing property value, loan to value (LTV) ratio, financial status (income, credit history, debts), exit strategy, property condition and potential enhancement to value.
  • Interest rates. Interest rates vary based on a number of factors including the borrower’s creditworthiness, the loan-to-value (LTV) ratio, the property’s location and condition and the loan term.
  • Borrowers should also consider the costs associated with buy-to-let bridging loans, including arrangement fees, valuation fees, insurance, legal fees and exit fees.

Find out more

To help discover the approximate costs involved with bridging finance use the online bridging loan calculator for guidance.

Novellus offers a stress-free application process. For more information simply call us today on 0203 397 4871 or fill out our form below.

Quick Enquiry

Any data you provide Novellus Finance will be used in the decision making and processing of any future loan. The data we collect will be shared with our legal representatives and potentially other third parties to assess your suitability and for future transactions on any loan(s) with Novellus Finance. We will hold information securely for up to 7 years after your contract with Novellus Finance ends. Should you wish for us to delete all traces of data we hold about you after your contract expires or should you wish to request details of data we hold about you please email [email protected]

DPA Registration Number: ZA259171
Novellus Limited is registered with the FCA. Our registration number is 782166

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UK
Contact
T Bromley, 15-17 London Road, Bromley, BR1 1DE
0203 397 4871
[email protected]
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©2023 Novellus Finance is a trading style of Novellus Limited registered in England and Wales.
Company No. 10790634. Registered address: T Bromley, 15-17 London Road, Bromley, BR1 1DE

THINK CAREFULLY BEFORE SECURING ANY DEBT AGAINST YOUR PROPERTY. YOUR PROPERTIES MAY BE AT RISK IF YOU DO NOT MEET THE COMMITMENTS OF YOUR LOAN