We were contacted by David who was a buy to let landlord with three properties in his portfolio.

David told us that his three properties had been purchased using bridging finance. He had done this because they needed refurbishment to make the properties lettable. He had intended to replace the bridging with conventional buy to let mortgages when the works were done.

David said that they were all light refurbishment jobs, nothing structural, just new kitchens, bathrooms, and decorating. However he said that it cost him 6K in fees plus interest for a 45 day bridge, which he said was “annoying”.

He went on to say that a house had come up that would make a welcome addition to his portfolio, but again was in need of a refurb to make it mortgageable and lettable.

David said that he had the £18K necessary to do the work plus a good amount of deposit for the purchase, but wanted to know if there was an easier and cheaper way than using bridging finance for the balance of the purchase money. Our Broker Kerry told David that she had access to a special situations buy to let finance that was available to experienced landlords only, who were looking to upgrade and refurbish properties. There was no need to involve a bridge. She went on to say that the buy to let refurbishment deal would look something like this:

Our Broker told David that the lenders rental cover requirement would be based on the rental assessment as it would be after the refurbishment work has been completed, however in the interim he would need to demonstrate that the monthly cost was affordable.

David was delighted with the product and concept, telling Kerry that it would save him thousands in both fees, legal costs and interest over the bridging finance route that he had been quoted.

He duly went ahead with the paperwork and the case completed in 5 weeks.