FAQs
Your questions, answered
Bridging Loans
Find out more about bridging loans and how they can help your clients via our handy FAQs. If you still have questions that need answering, then get in touch with us via the link below.
A bridging loan is a short-term loan that can be secured against a property and is designed to ‘bridge a gap’ until longer-term finance can be arranged or the security property is sold.
One of the main draws is the speed at which a bridging loan can be arranged in. Terms can often be agreed within hours of an initial enquiry and funds released in a matter of days.
A bridging loan can be used for a wide variety of purposes including purchasing a property (including via auction), preventing a chain break, releasing equity and funding a refurb.
We secure against residential properties, commercial properties and mixed-use assets within England and Wales.
At MT Finance, our processes are designed to provide finance quickly. Terms can be agreed within hours and, depending on your client’s circumstance, funds can be released in a matter of days.
A bridging loan from MT Finance ranges from a minimum of one month to a maximum of 12 months for regulated bridging and 24 months for unregulated bridging. After one month, there are no fees or early repayment charges for repaying the loan before the end of the term.
Yes, we will lend to first-time investors.
Yes, we will lend up to a maximum of 70% loan-to-value (LTV) of the open market value (OMV) or 90% of the undervalue purchase price, whichever is the lower figure.
We will take a view on a loan request, even if the applicant has a bad or adverse credit history, has previous CCJs or is in arrears. Additionally, no personal guarantors are required and no credit scoring will take place. Instead, we will focus on the security asset and the applicant’s exit strategy.
- Valuation fee: This covers the surveyor’s costs for carrying out the property valuation
- Arrangement fee: The cost of setting up the loan, usually around 2% of the loan
- Administration fee: The cost of our administration of the loan
- Legal fee: This is usually charged at a set rate and covers the legal fees associated with the completion of the loan.
There are no other up-front fees, exit fees or early repayment charges.
No, we do not charge any exit fees. Our loans are subject to a minimum one-month term, after which your client may repay the loan early or make lump sum payments without incurring any fees.
Yes. We do not charge early redemption fees after the initial one-month term has lapsed.
In order to provide your client with indicative terms, we will require the information found on our enquiry form, including loan type and amount required.
A first legal charge is a principal loan on a property. In the case of first legal charges, the lender takes precedence above all others; being the principal lender of the loan. MT Finance can provide first charge loans on properties where the client and/or any family member do not live or intend to live.
A second legal charge is secured against a property that already has a loan or mortgage outstanding. Second charge loans require consent from a first charge lender. For unregulated bridging loans, MT Finance can provide a second legal charge on a residential property where your client or their family members live if it is for business purposes.
Buy-To-Let Mortgages
Find out more about our buy-to-let mortgages via our FAQs. If you still have questions that need answering, then get in touch with us via the link below.
A buy-to-let mortgage is a specific type of mortgage which allows landlords and investors to purchase or remortgage a property before letting it out to tenants.
Yes, we lend to individuals, limited companies and limited liability partnerships (LLPs).
Yes, we will lend to first-time landlords – and first-time buyers – who are purchasing a standard residential property or purchasing a simple HMO which has less than six bedrooms, no kitchenettes / only one kitchen. We require at least 12 months’ of experience for purchasing or remortgaging an MUFB property or a complex HMO.
Yes, we do. Stress testing is set at 125% for portfolio landlords and we lend up to the product LTV.
We evaluate each application individually on its own merits. By taking a common-sense approach, we can often support borrowers who fall outside the standard criteria and credit profile.
We accept a minimum income of £15,000 per annum if the applicant has no landlord experience. If the applicant has more than 12 months’ experience, we may not require a minimum income, dependent on property type.
- Application fee: This is an upfront fee of £185 which covers the administrative costs of processing an application
- Valuation fee: This covers the surveyor’s costs for carrying out the property valuation
- Product fee: This can be paid upfront or capitalised to the loan as part of the gross total
- Funds transfer fee: This is a fee payable on day of completion. This covers the distribution of the money and can also be capitalised in the loan for seamless completion
- Early repayment charge: This will only be incurred if the borrower exits their buy-to-let mortgage early. Please refer to the product guide for specific costs.
We are unable to offer consumer BTL unless the borrower has a portfolio of more than two properties.
Our ICR stress testing starts at 125%. This rate is available on our five-year products across all tax brackets. Our team can provide more information in relation to our two-year products.
We use Method, Appraisers UK and Connells.
For buy-to-let mortgages, we lend against the open market value (OMV).
An element of investment value is considered for large or complex HMOs completed on a RICS Red Book valuation report.
Yes, we do. We stress against what a standard assured shorthold tenancy (AST) would achieve. Please note that holiday lets fall within our standard buy-to-let criteria.
Commercial Mortgages
Find out more about our commercial mortgages via our FAQs. If you still have questions that need answering, then get in touch with us via the link below.
A commercial mortgage is a mortgage specifically aimed at borrowers who are looking to purchase or remortgage a property for commercial use. Our commercial proposition also includes semi-commercial and commercial mixed-use products. Please refer to our product guides for clarity.
Yes, we lend to individuals, limited companies and limited liability partnerships (LLPs).
Our standard commercial product covers: automative, children’s day nurseries, data centres, garden centres, general industrial, healthcare, hotels, guest houses, B & Bs, hostels, offices, retail, storage, student accommodation and food outlets.
Our specialist commercial product covers: car parks, education, energy, leisure, science & technology, logistics, sports venues (no golf courses or football clubs) and utilities.
No, we do not lend against land.
We accept owner-occupier borrowers subject to the property being in an opco/propco structure.
Yes, we lend to first-time commercial landlords on standard product assets only.
We accept a minimum income of £15,000 per annum.
Our ICR stress testing is set at 125%.
On commercial mortgages we lend against the market value with vacant possession (MV-VP). Further information can be found in the product guide.
- Application fee: This is an upfront fee of £250 which covers the administrative costs of processing an application
- Valuation fee: This covers the surveyor’s costs for carrying out the property valuation
- Product fee: This can be paid upfront or capitalised to the loan as part of the gross total
- Funds transfer fee: This is a fee payable on day of completion. This covers the distribution of the money and can also be capitalised in the loan for seamless completion
- Early repayment charge: This will only be incurred if the borrower exits their buy-to-let mortgage early. Please refer to the product guide for specific costs.
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