Skip to Main Content
Buy to Let Purchase Using Bridging Finance for Portfolio Landlord

Buy to Let Purchase Using Bridging Finance for Portfolio Landlord

The Client: An experienced portfolio landlord looking to purchase his sixth buy to let property.

The Property: A two-bedroom flat in a converted semi-detached townhouse. Recently refurbished to a high specification, the property required no additional works. It was situated in a popular area of South London with access to excellent transport links and local amenities.

The Finance: As a desirable property, our client needed to source his finance as quickly as possible to complete the purchase. As buy to let mortgages usually take at least a couple of weeks to get to offer, we decided a 75% bridging loan would be the quickest way to secure the purchase.

The Challenge: Fortunately, as our client knew this would be a buy to let property, we had a clear exit for the bridging finance to work with. The main challenges would be sourcing a competitively priced loan with a time-efficient lender in order to keep our client’s costs down and secure the purchase. Furthermore, as our client wouldn’t be able to let the property until we refinanced it onto a buy to let mortgage, he wanted the loan’s interest to be rolled up, so there were no monthly payments while the property was not generating an income.

The Solution:  Using our extensive knowledge of the bridging finance market, we were able to identify a selection of bridging lenders we knew could produce a finance offer in just a matter of days. From this list, we identified a competitive rate that would not add too much additional cost to our client’s purchase. With all the necessary paperwork already collected, we were able to submit the application for our client and secure the purchase with an offer in just a week. We are now working to secure our client’s buy to let mortgage for the exit. Here are the details of the bridging finance:

Property Details

Property value: £375,000

Loan amount: £270,570 (£281,250 including interest)

LTV: 75%

Rate: 0.80% per month

Term: 12 months

Lender arrangement fee: 2% (£5,625)

Application: SPV Limited Company


Get in contact with us: 0345 345 6788 or ...

Submit an enquiry
Arrange a call back

Mortgages for Business Ltd is registered
in England and Wales No. 2502713.

Registered office:
17 Kings Hill Avenue,
Kings Hill, West Malling,
ME19 4UA.

© Copyright 2022. All rights reserved.

Mortgages for Business Ltd is authorised and regulated by the Finance Conduct Authority (No. 313537) to transact regulated mortgages. We are a credit broker, not a lender. We work with the whole of market in sourcing a lender for you; we may receive a commission from the lender, and this amount varies between lenders. The FCA does not regulate some investment mortgage contracts. Mortgages for Business Ltd is a founding member of the National Association of Commercial Finance Brokers, the body that promotes best practice within the commercial finance industry. Telephone calls may be monitored or recorded for training purposes.