Exit for BTL bridging loan with capital release to buy another investment property

We’re in on the ground with these two business partners, helping them to expand their growing property portfolio. And we’re not just providing the fast, short-term property purchase finance they came looking for, but also a speedy exit onto the long-term mortgage which will repay it.

The Scenario

These clients sold the business they jointly owned and used the proceeds to buy a first buy-to-let flat with cash.

We arranged a bridging loan secured against that apartment to help buy their second rental property – another office-conversion apartment. They’d needed a quick injection of additional cash for the second down payment on the purchase.

Four months later, they came back to us to arrange the buy-to-let mortgage as exit on that lending, and also to raise an additional £50K to enable them to buy a third rental property.

They’d looked around at various BTL options as their exit, but one of the business partners had some credit issues, which limited the number of willing lenders.

They were also wanting to be able to top up the rental income (£750 a month) with external income, which not all lenders are happy with.

The Solution

After looking at a range of options for them, we took their application to the BTL department of their original bridging lenders, who we knew would be willing to consider their circumstances.

They did require a new valuation because the client’s previous 50% LTV on their bridging loan had only required a drive-by-valuation.

But there were some advantages to using the lender who already held the documentation on this property and who we knew would offer a good rate and act quickly. And we secured them a competitive rate for the 20-year BTL variable mortgage they wanted, at 5.99%pa.