I want to bridge-to-let as a new investor – is it possible?

Some lenders will want applicants to have experience in property in order to accept an application from them for finance. However, there are exceptions. So, if you have plans to get into property investment, this case study may be of interest.

The client had a number of properties on short-term bridging loans, as her purchases had moved ahead quickly and the properties needed work doing to them, in some cases. The client needed us to get long-term finance in place to pay off the bridging loans.

With plans to retain the properties and let them out, our job was to arrange suitable buy to let mortgages where the lender was comfortable with a gifted deposit and the speed at which the portfolio have developed.

If you are renovating property to rent out to tenants, buying at auction with a bridging loan or you need to move quickly to secure a property, a similar bridge-to-let strategy may be appropriate.

Watch the video to find out about the case and get in touch for help with your own investment.

Video guide transcript: Building a portfolio quickly with a bridge-to-let investment strategy

“We had a client approach us a little while ago, looking to refinance a few of her properties. 

“She purchased six buy to let properties, going from being a first time landlord to purchasing six of them over a period of nine months. So, it was a really quick turnaround time. She found a seller who was looking to sell off those properties really quickly. Some of them were being sold under the market value as well. 

“Our client went ahead and purchased them all through bridging finance, which is a great way to purchase properties much quicker than if she was to go through a standard mortgage. So she approached us with all of those properties being on bridging loans, looking to refinance them all and raise some more funds from just property as well. 

“After she purchased the properties, she did some works to them as well, so renovated them to increase the value of all of them. She wanted us to refinance them at a current market value (at an increased market value), while looking to capital raise to continue building up that property portfolio as well. 

“Another quirk to it was that some of the deposit to purchase those properties were coming from our client’s partner, who wasn't party to any of those mortgage applications or to those bridging applications as well. 

“So there were lots of different aspects to the scenario that lenders would query when it comes to quick turnarounds and accelerated growth of the property portfolio. 

“It also comes down to the fact that the lenders need to be comfortable that this client will be able to maintain all of those properties, manage the tenants, where only a few months ago the client and had no experience whatsoever. 

“There will be lenders who will be able to consider those type of scenarios, but they made place a limit or place a restriction on how many of those properties they would be able to consider. 

“All of those different aspects are something that we had to take into an account when speaking to our lenders. 

“But, the good thing is that we have managed to place all of those properties. We have found a lender who can consider all of them for our client, and that is an extra bonus when it comes to processing all of those applications for that client, because that means we've got one underwriter looking after all applications with the documents being supplied at once, cross-referenced and making sure that we can have nice and smooth completion on all of them for our client at the same time. 

“So, if that is something that you're looking to do, if you have secured a number of properties over a quick period of time and you are worried that may raise concerns for some of the lenders, give us a call and we'll be able to help.”