A residential and buy-to-let bridging loan is designed for property investors who are looking to purchase a variety of residential assets.
Our bridging loan calculator is here to help generate a detailed quote that outlines your potential interest rate, charges and any other costs you may need to consider. You can also download your bridge loan quote for free.
A residential bridge loan is a loan for use on properties that can be lived in.
This is often in the form of:
Residential bridging loans can be used to provide fast capital to purchase a property in England or Wales.
The loan is generally used to ‘bridge the gap’ that can appear when purchasing a new property. Often our clients are keen to add a new property to their portfolio, but risk losing out on an opportunity whilst waiting for long-term finance applications to be accepted, or for a previous property to sell. This is where a residential bridge loan could provide the solution: the client can purchase the property promptly, whilst making other arrangements for the long-term financing of the asset or waiting for the previous property to sell.
On a residential or buy-to-let property, you are able to borrow from £100k to £4m. If you wish to borrow more than this, it will be a Large Residential Bridge Loan, and you are able to borrow up to £20m on a single property, or £50m for a portfolio of properties.
A residential or buy-to-let bridging loan can be used anywhere where a property investor needs to move more quickly than usual. It can also be used where the investor does not necessarily meet the requirements of a traditional high-street lender, as unregulated lending is often much more flexible than the mainstream banks.
The four main reasons to use a bridging loan are:
Many borrowers use a buy-to-let or residential bridge loan because they are fast. Traditional lending is a long process. In many cases, it can take up to 130 days – even for a seemingly simple application. With such a large amount of time spent waiting for funds, this delay can put the borrower’s residential purchase at risk of falling through, or open to gazumping tactics from other buyers.
Buying new build properties is particularly popular with overseas clients. The period of exchanging and completing on a new build is generally set by the developer and is often around 2 weeks. This puts the borrower at risk of losing their deposit if they are not able to sort finance in time. A BTL or residential bridge loan is usually required when the buyer is not able to secure the funds through a traditional lender by the set completion date.
Auctions can be a great place to look for good value properties, whether it be residential or commercial. They are also popular for those looking to work on refurbishment projects, so that they can redecorate, refurbish then resell the property for a potential profit. Auction finance is designed to move quickly, as auction houses usually provide a tight completion window, averaging only 28 days.
If a client is looking to expand their property portfolio, a buy-to-let and residential bridging loan can be a short-term finance solution for purchasing commercial assets or embarking on other business ventures. Much like with residential properties, this is usually due to the speed in which funds can be deployed and the flexibility that the capital provides to the client. They can secure their BTL bridge loan on the residential asset in order to release funds. If they are purchasing a commercial property, there is also the option to look at a commercial bridging loan, which secures the loan against the commercial asset being purchased.
With a residential or buy-to-let bridging loan, the type of property that can be purchased is simply a property where someone will be residing. However, this covers a wide range of different types of residential property including:
The main advantage is that they are fast to arrange, with funds available in as little as three days. They are also flexible, as they can be used on various types of property for a wide range of clients with complicated circumstances, such as complex company structures, clients with adverse credit, or Foreign National clients that don’t have a UK footprint.
These residential and BTL bridging loans can be used by almost anyone wishing to purchase residential property – providing they are not going to live in it themselves. Some of our common clients include:
You can have funds in your account in as little as three days. We will also reply to your enquiry within four hours. We work at the pace of the client to make sure that any deadlines are met.
Our fees include an arrangement fee. This fee starts from 1% of the gross loan amount. There are no early repayment charges on our residential and buy-to-let bridging loans. We also charge a commitment fee, which is refunded on completion.
As each of our cases is different, we may need different paperwork dependent on the circumstances.
However, some of the standard documents/information that we request includes:
Call or email us today to get your application started.
You can call on +44 (0) 20 7060 1234 or email info@mfsuk.com and you will be connected with one of our dedicated underwriters, who will discuss your requirements with you, and guide you through the process.
Get in touch via phone, chat or email about your query, however complex it might be. We will try our best to say yes to you, instead of finding a reason to say no.
Email: info@mfsuk.com
Phone: +44 (0)20 7060 1234
Email: brokers@mfsuk.com
Phone: +44 (0)20 7060 1234
