Bridge-To-Let Loan

A Bridge-To-Let mortgage is a type of bridging loan that comes with a pre-approved Buy-to-Let.

How does a Bridge-to-Let loan work?

With a Bridge to Let mortgage, the initial bridging loan is used to purchase or develop a property, then when the property is completed and tenanted the property is transferred to a Buy-to-Let agreement.

What are the fees for Bridge-to-Let?

As well as your agreed interest rate, lenders will charge additional fees to cover the administrative costs associated with securing your loan. This can include:

• The valuation of the property

• A facility fee

• An exit fee

• Any legal costs

Fees are based on the loan value. Facility fees and exit fees, for example, might be between 1-2% of the Bridge to Let mortgage value. Bridge-to-Let mortgage is designed to help investors buy a property they’d otherwise struggle to secure funding for through a traditional mortgage, perhaps due to the property being uninhabitable. Bridge to Let loans come with the exit already secured through a Buy to Let, this product is ideal for investors looking to rent the property out after making carrying out the required works.