Achieve Buy-To-Let Auction Success With Bridging Finance

Right now UK property auctions are booming and many investors are going to them with the express purpose of picking up a bargain in this downturn. The Council of Mortgage Lenders has predicted that as many as 65,000 could be repossessed in 2009* - while that’s bad news for those homeowners, that means there are many properties going to auction at a discount. And mortgage lenders want to sell these properties fast – they want to recoup as much as they can before the house loses value. So if you are a property investor and think the time is right to catch one of these bargains while they are still on the table, you need some bridging finance.

Bridging finance is short-term, large loans. Usually people take out mortgages to buy a home – two-year, five-year or even 10-year loans secured on the property. But if you do not have the time to get hold of a mortgage – when bidding in an auction room, for example – you need a loan to help you strike while the iron is hot. Bridging finance will give you the freedom to go for the bargains that are on offer now.

Usually you are given a short window to buy a property at an auction by the auctioneer – you may be limited to 30 days or even as little as two weeks to come up with the money for your chosen property, which gives you precious little chance to get the right mortgage. Bridging finance will bridge the gap, so to speak - allowing you to make the down payment and allow you to take the time you and your adviser need to source the right buy-to-let mortgage loan.

Of course, there are risks associated with bridging finance. As soon as you take out the short-term loan, you essentially have a mortgage with a short fuse – if you cannot get long-term finance on your property, you might find yourself with a big burden. That’s why bridging finance lenders will be extremely cautious with who they deal with – they will want to be certain that they are working with someone who is not only sure of themselves but is also sure that their investment will be manageable.

That’s why, where bridging finance is concerned, you need to team up with a mortgage adviser to help you at every step of the way. They will be able to help you plan out a course of action – from deciding what type of property you want to invest in, deciding how much you can afford to invest, which bridging finance provider to opt for and even helping you picking the ensuing buy-to-let mortgage. Bridging finance can help property investors make the most of the downturn – but only those investors who understand their limitations as well as their potential.

* SOURCE: CML, 22/07/09

Bridging Loans are not regulated by the Financial Services Authority.

Bridging Loan Enquiry Form

Title:*
First Name:*
Surname:*
Email Address:*
Telephone Number:*
Any other information you consider helpful to your enquiry:
Data Protection and Future Relationship Declaration
- Please Read

Where your details are passed to The Mortgage Broker Ltd the following applies:

- The Mortgage Broker Ltd and Home of Choice Ltd will process all information in accordance with the Data Protection Act 1998 and it will be treated as private and confidential now and in the future. The only exceptions to this will be when the law requires us to disclose information or, with your consent, where disclosure is necessary when arranging or servicing your mortgage or protection contracts.

- To fulfill our regulatory obligations, we will retain copies of your records for no longer than is necessary or for the duration of any contract you may enter into. You have the right to inspect these records at any time.

Where your details are passed to a Preferred Broker Partner the following applies:

- The responsibility for processing and handling this data in accordance with the provisions of the Data Protection Act 1998 lies with the Preferred Broker Partner. The Mortgage Broker Ltd does not accept responsibility for the handling of this personal information.

Our ongoing business relationship with you is important and we would like to be able to contact you by telephone, post or email from time to time to review your mortgage and associated protection product arrangements and introduce other services that may be of interest to you from ourselves or our associated companies.

I have read and understood the above Data Protection and Future Relationship Declaration