Bridge to let mortgages are a type of bridging loan aimed specifically for the buy to let market.

They are mainly accessible to residential and commercial customers who want to buy investment property.

These types of interest-only bridging loans are secured on the property, and are ideal when time is an issue and you need to move quickly. 

In a competitive fast-paced property market, the difference between securing the perfect property and missing out on one is incredibly small. That’s where bridge to let mortgages can help you to secure a property before your competitors, or allow you to finance a property when it doesn’t qualify for a standard buy to let mortgage. 

Bridge to let mortgages are commonly used to:

• Support a broken property chain
• Complete a deal on a buy to let property while other finance is being arranged
• Develop or renovate a property so it qualifies for a standard buy to let mortgage
• Purchase a property at auction to turn into a rental
• Convert a property into an HMO or rental

As long as you can repay the loan, have an exit strategy and a reasonable chance of achieving rental potential, you can borrow up to 85% loan to value for up to 12 months with GPS Financial.

What are the alternatives to Bridging Loans?

Bridge to let mortgages are the fast, convenient answer to property finance, but they aren’t the only option.

Here are some other options that are available:

Buy to let mortgages – A standard buy to let mortgage is the most common form of finance. It is secured on the property for a much longer period of time but can take weeks or months to arrange.

Commercial mortgages – If you run a lettings business, you may also be able to access a commercial mortgage. Again, these are for a longer period of time but with less flexibility and they can also take weeks or months to arrange.

Secured loans – Secured loans use a second charge on a buy to let. They are also for a longer term and can be useful, but they aren’t quite as flexible as a bridge to let mortgage and rates can be quite high too.

Private investment – Private investment uses someone else’s money to complete the purchase or the development. It works in a similar way to a bridge to let mortgage, but you have to know where to find an investor.

Other alternatives to bridge to let mortgages include remortgaging existing property, using a development loan and selling other property to specialist companies.