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BUY-TO-LET

BRIDGING LOANS

BUY-TO-LET

BRIDGING LOANS

Buy-to-let property has been an established option for property investors for many years. However, getting finance to purchase these types of properties can be challenging, as the criteria for buy-to-let mortgages can be quite comprehensive.

Mortgage lenders will only lend to investors who can afford to take the risk on of buy-to-let investments. This includes being able to cover the costs of the mortgage during a tenant-free period. Lenders require borrowers to be earning over a certain salary and have an excellent credit record without being over-stretched on other borrowings.

Raising deposits for buy-to-let mortgages can be a challenge for a borrower, Novellus can be flexible in taking into consideration the specific circumstances around the asset and borrower when issuing terms.  Due to the strict guidelines, a buy-to-let mortgage can take a long time to be approved, which is one of the reasons property investors turn to a bridging loan for buy-to-let properties in the first instance.

BUY-TO-LET

WHAT IS A BRIDGE-TO-LET LOAN?

A bridge to let loan is another term for a bridging loan that will be specifically used to buy a property to rent out. Investors can buy any rental property with a bridge-to-let loan, including residential and commercial. This type of funding is a short-term option that helps bridge the gap while organising long term finance.

BUY-TO-LET

WHY CHOOSE A BRIDGE-TO-LET LOAN?

The buy-to-let market is very competitive and when property investors spot a good deal, they are always looking to make a quick purchase, as they may risk losing out to someone else. Bridge-to-let loans are usually approved within a short timescale allowing property developers access to funds for purchases quickly.

Properties that could be viable as a buy-to-let often come available through auctions, although they may require extensive refurbishment before being rented out (often falling outside of many lenders criteria). Bridging loans can be used when buying properties at auction which are presently not habitable. Unlike most traditional mortgage lenders, the application process for Bridging loans does not typically discount uninhabitable properties.

If investors are struggling to raise funds, using a bridging loan for buy-to-let deposits ensures that the borrower does not miss out on any good deals, whilst also providing a greater time frame to secure long-term finance.

BUY-TO-LET

CONSIDERATIONS

The borrower will need an exit strategy in place, which is usually refinancing the property with a longer term buy-to-let mortgage.

The loan term provided by Novellus is generally between 6-12 months.

The borrower can pay off the loan at any time within that period without incurring any early repayment fees (save for the interest payable during the repayment notification period).

Find out more

To help discover the approximate costs involved with bridging finance use our online bridging loan calculator for guidance.

Novellus offers a stress-free application process.

To find out if you qualify simply call us today on +353 1 531 4237 or fill out our quick enquiry form below.

Quick Enquiry

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100 St. Stephen’s Green, Dublin, D02 EP84

+353 1 531 4237
[email protected]

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©2023 Novellus Finance is a trading style of Novellus Finance Limited registered in Ireland.
Company No. 710946. Registered address: Novellus Bridging, 100 St. Stephen’s Green, Dublin, D02 EP84

THINK CAREFULLY BEFORE SECURING ANY DEBT AGAINST YOUR PROPERTY. YOUR PROPERTIES MAY BE AT RISK IF YOU DO NOT MEET THE COMMITMENTS OF YOUR LOAN