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Landlords & investors turn to bridging to upgrade assets

A growing number of property investors and landlords are realising that they can use a bridging loan to quickly upgrade their investment assets before selling it on at a higher price or retaining the property and benefitting from increased rental income.

As the difficulties associated with being a landlord continue to increase- with rising costs and the challenges created by Covid-19, many are looking to quickly create value out of their portfolio.

Given the delays that continue to impact the lending market, landlords and investors who need a faster solution to their funding requirements are turning to bridging finance, as funds are often released far quicker than is the case with a mainstream BTL mortgage.

Clients can therefore fund all or part of the required works, such as installing a new kitchen and/or bathroom, and general decoration in order to quickly increase the value of a property.

As an example, we were recently contacted by a client who required a £97,000 bridging loan to upgrade her block of flats. She wanted to move quickly to take advantage of the current market.

In just over a week, we provided a £97,000 second charge short-term loan, based on an open market value of 58% LTV. Once the client’s refurbishment works are complete, she plans to rent out the units at an increased rental income, making a significant profit on her portfolio.

Our bridging loan products are designed to meet the many diverse needs of property investors and landlords.  Borrowers can apply as individuals, sole traders or through limited companies. We do not require a minimum credit score, accounts, or proof of income, and do not require personal guarantees on company transactions. This allows us to take a practical, common-sense approach to lending.

Light Refurb Product Features:

  • Rates from 0.69%
  • 1st & 2nd charge loans
  • Loans from £50,000- £10,000,000
  • Up to 65% LTV
  • Terms from 1-24 months
  • No up-front fees, no exit fees, no ERCs

If you are looking to upgrade your residential, commercial or mixed-use investment asset, before renting it out or selling it on at a higher value, please get in touch to find out how MT Finance can help with light refurbishment finance on 0203 051 2331 or fill in our contact form, and someone will be in touch with you shortly.

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