If you have discovered a property to rent out on a residential or commercial basis and need to make some improvements in order to get it up to a habitable position, investment bridging is the way to go.
Although many lenders will not lend on homes if they are judged uninhabitable by their surveyors, investment bridging allows you to buy time to complete the purchase swiftly.
It just takes a few weeks and is relatively inexpensive, but it’s not nearly as quick or simple as investing through a mortgage lender. Rates start at 0.45% depending on the sort of property and deposit you have, but they vary widely from borrowing institution to borrowing institution.
Tips for Getting Approved for a Investment Bridging Loan
When you are looking to get a bridging loan for investment, it is important to keep in mind that there are some things you can do to make the process easier. Here are four tips for getting approved for a bridging loan:
- Make sure you have a good credit score.
- Have a solid income and employment history.
- Show that you have equity in your property.
- Be able to explain your investment strategy.
If you can follow these tips, you will be on your way to getting approved for a bridging loan. Remember, the key is to be prepared and to have a solid financial plan. With a little bit of effort, you can get the funding you need to buy your investment property.
Pros and Cons of Investing in a Bridging Loan
When it comes to investment bridging loans, there are both pros and cons to consider. Here are some of the key benefits and drawbacks of investing in a bridging loan:
- Quick access to funding.
- Can be used to purchase property quickly.
- No need to go through a bank.
- Can be used for a variety of purposes.
- Higher interest rates than traditional loans.
- Shorter terms than traditional loans
- More complex process than traditional loans.
- Riskier investment option.
As you can see, there are both pros and cons to investing in a bridging loan. You will need to weigh the pros and cons carefully before making a decision. If you are comfortable with the risks, then a bridging loan can be a great way to get funding for your investment property.
To speak to a member of our team, contact us today