The complicated process of Buy-To-Let mortgages can be overwhelming and challenging for the borrower. On top of that, traditional mortgage lenders generally tend to lend to those who can cover the cost during tenant-free periods.
Hibernian Capital are aware of the challenges investors face when trying to raise deposits for Buy-To-Let properties hence why we offer flexible funding around the asset when drafting terms. Many investors will turn to a bridging loan for buy-to-let properties. This is a short term solution for investors while they organise a longer source of financing.
More importantly, the competitive nature of the market doesn’t allow for slow action. Bridging loans for the sole purpose of Buy-To-Let properties can be permitted within a short time frame allowing developers access funds quickly without the hassle of the traditional complicated processes.
Using a Buy-To-Let bridge loan secures the property for the investor while also allowing them a greater time frame to arrange long-term finance.
The Exit Strategy
Hibernian Capital will generally source a loan term between 6-12 months. The borrower can pay off the loan within that timeframe without incurring any early repayment fees.
In the meantime, the borrower will typically need to refinance the property with a longer term Buy-To-Let mortgage.