What is a Bridge to Let Mortgage?
A bridge to let mortgage is a short-term, fixed-term loan designed for investors looking to purchase properties to rent out. It allows buyers to act quickly in the competitive property market, especially when they don’t yet have a mortgage or deposit ready.

These loans can be used for both commercial and residential properties, with an exit strategy involving refinancing onto a standard buy-to-let mortgage enabling the property to be rented out on the open market.

Who Can Benefit from a Bridge to Let Mortgage?
Bridge to let mortgages are ideal for:

  • Investors needing to bridge funding gaps while waiting for another property sale.
  • Those looking to renovate and then let out properties within a short period.
  • Buyers needing quick financing for auction purchases.
  • Purchasers of unmortgageable properties needing refurbishment before refinancing.

How Quickly Can I Secure a Bridge to Let Mortgage?
Bridge to let mortgages can be processed much faster than traditional mortgages. In some cases, funds can be available within 5 to 7 working days, especially with the assistance of a specialist broker like Unique Property Finance.

What are the Benefits of Using a Bridge to Let Mortgage?

  • Pre-Approved Exit Finance: Helps secure properties by providing an exit strategy upfront.
  • Appeal to Sellers: Faster processing makes buyers more appealing to sellers.
  • Chain-Free Purchases: Allows buyers to purchase new properties before selling their existing ones, avoiding chain delays.

Can I Get a Bridge to Let Mortgage with Poor Credit History?
Yes, it is possible to secure a bridge to let mortgage with a poor credit history. While most lenders prefer applicants with good credit, some lenders cater specifically to those with issues like CCJs, bankruptcy, or a lack of credit history. Working with a specialist broker like Sunny Budhdeo at Unique Property Finance can help find lenders willing to consider your application.

What is a Bridging Loan Exit Strategy?
An exit strategy is a plan to repay the bridging loan when it comes due. Common strategies include selling the property or refinancing it with a standard buy-to-let mortgage. If the exit strategy fails, options include extending the loan, refinancing with a new lender, or, as a last resort, selling the property. Bridge to let loans are based on the property being let out at the end of the tenure.

How Much Can I Borrow with a Bridge to Let Mortgage?
Loan amounts can range from £50,000 to £5 million, with terms from 1 month to 3 years. The amount you can borrow depends on various factors, including the value of the property and what the property is expected to rent for.

What Fees are Associated with a Bridge to Let Mortgage?
Typical fees include:

  • Valuation Fee: For property appraisal.
  • Facility Fee: Up to 2% of the loan amount.
  • Exit Fee: Around 1% of the loan amount.
  • Broker Fee: If applicable.
  • Legal Costs: For conveyancing and related legal work.
  • Interest Payments: Depending on whether interest is paid monthly or rolled up into the loan.

Do I Need a Deposit for a Bridge to Let Mortgage?
Yes, a deposit is typically required. Most lenders provide a loan up to 70% of the property’s value, meaning a deposit of 30% or more is usually needed. However, this can vary depending on your circumstances and lender policies.

Can I Use a Bridge to Let Mortgage for Renovations?
Absolutely. Bridge to let mortgages are perfect for properties needing significant work. These loans provide the funds necessary to refurbish the property, making it suitable for a standard mortgage or increasing its value for resale.

How Do I Apply for a Bridge to Let Mortgage?
Applying for a bridge to let mortgage involves providing details about your credit history, personal information, property details, and exit strategy. Working with a broker like Sunny Budhdeo at Unique Property Finance can streamline the process, ensuring you get the best deal and support throughout the application.