August 2017 - First 4 Commercial

Investing in Buy-to-Let Properties – What to Look Out For

Mortgage rates and bridging finance continue to work together in such a way that purchasing property for the purposes of buy-to-let is still an attractive option for many an investor. If you are looking to get into the marketplace, and you have a deposit ready to go there are a few things that you should be looking out for that will help you secure a property that is perfect to let out.

Do Your Research – Of course this sounds straightforward but it is vital that you research all aspects of a potential purchase thoroughly. Work out your financial situation down to the penny, what can you afford for a deposit? And what would you want as a return on your investment? Look at all the risks and benefits of this approach and choose the location of the property so that there is a good balance between good value and a nice area to live.

Put Yourself in a Renters Mindset – This will help you to choose the area that you are purchasing a property in, as well as the type of property. If you were renting, what would you want the place to look like and where would the ideal location be?

Focus on Rental Yield – If you have researched effectively and thought like a tenant, you can focus on bringing in a good rental yield on the property. Even if your end goal is to sell the property, rent in the short-to-medium-term can help you to build some savings.

For more information about bridging finance to secure a property for buy-to-let purposes, contact First4Commercial. Our experienced team has access to a wide range of bridging finance lenders.


Using a Bridging Loan as a Short Term Financing Option

Bridging loans are an excellent way to secure short term financing options when you are faced with a situation where you are reliant on money coming in from another source at a slightly later date. First4Commercial has a bridging panel with a wide variety of experts, offering bridging loans to not only those with a clean credit history, but also to individuals who may have a poor debt history and an adverse credit score. In these circumstances where a gap needs to be bridged financially, we can really help all situations.

So what are the reasons someone might be looking for a short-term bridging finance?

The majority of bridging finance deals come about due to a need to complete a property acquisition, whether this is to develop the property, invest in it or to use as a buy-to-let. Bridging finance is perfect for developers and landlords looking for a rapid turnaround on a sale. It also helps those people who have already found a new property to move into, but are waiting for their current property to be sold and need short-term funds to do so.

If you would like to find out more about First4Commercial and how we can help you secure that much-needed short-term funding that will help you complete a transaction in terms of a property purchase at auction, or for a refurbishment project, call us today. Our team of bridging finance specialists are here to help, with a vast knowledge of the products and services that will assist you at your time of need.


Non-Status Bridging Finance

First4Commercial has a wide range of bridging finance lenders on our bridging panel and with that we can offer loan and credit options to a wider range of clients, from those with a clean credit history or low loan as a percentage against the value of their property (LTV), to clients that have adverse credit and a poor credit history and may have suffered when applying for loans from traditional lending routes.

In most cases a bridging loan is required to ensure that a transaction can be completed within a short timeframe. The most common reasons for a bridging loan application is to secure property (often at auction), or for refurbishment and renovation projects. If a person has poor credit it might slow the process down and lose them their future asset.

That’s where we step in, offering competitive rates without the requirement of a clean bill of health on your credit file. As long as the property in question has enough equity and you are showing willing in terms of getting out of debt, we can help secure a short-term loan to help finalise the transaction.

If you would like to find out more information about bridging loans for a variety of reasons, and if you have a clean credit file or bad credit and are finding traditional lending avenues difficult to come by, First4Commercial has the team in place to assist you.


Bridging Loans Increase Significantly With Latest Figures

Bridging loan activity in the UK has increased by a staggering 26% quarterly rise, up to £150.1m, according to data from Bridging Trends. The increase does seem to suggest that lenders across the board are beginning to brush off the worries in the market post Brexit and the recent General Election.

Average loan-to-value levels dropped to a 45.4% low for the lowest quarter since Q1 2015, and mortgage delays continue to be near the top of the list of reasons bridging loans are being taken out at 25%.

The increased lending figures are particularly high in the non-regulated refurbishment market and the demand for this type of specialist bridging finance remains at a high figure. Refurbishment projects have now replaced delayed mortgages as the main reason for bridging finance, the first time this has happened, dominating the market at 53.9%. The increase has come at a time when non-regulated transactions have helped to push down the average completion time to 39 days, with many property professionals always eager to complete a project as soon as possible in order to quickly move on to the next purchase.

First4Commercial has the team and connections in place to help you secure bridging finance for both commercial and residential purposes. If you would like to find out more about how we can help you, call us today on 01277 620083 and we’ll be happy to talk you through the process and offer expert advice and guidance.

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