Bridging loans are a short-term form of lending and are usually arranged much quicker than a buy-to-let mortgage, with turnaround times commonly around 28 days; although, one of the lenders we work with has the capability to pay out funds on the day of application (under the right circumstances).
Bridging loans can be used for a variety of reasons, including to:
Clients can typically borrow up to 75% loan-to-value on a regulated bridging loan and rates start from 0.49%.
Bridging loan rates vary, depending on factors such as the purpose of the loan and projected future rental income of the property (established by a valuer).
If the regulated bridging loan is to cover renovation work, then the lender might perceive heavier work (such as knocking down walls or building a conversion) to be a greater risk than a kitchen renovation. Therefore, the rate might be higher.