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 not to lend to those who can cover the cost during tenant-free periods.
Brook Finance 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
Brook Finance 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.