bridging loan

[robbiefltn]

looking for some advice really, I am completely fresh to property development as in I am literally only looking into It all now, I have read a few different pieces that bridging loans seem to be popular for first time buyers to renovate and resell. can anyone share experiences they've had doing this or give advice on bridging loans? many thanks

 

[totallyproperty]

Hi Robbie, welcome to the forum! I've not personally used a bridging loan but we do have a free ebook you can download that talks about all types of property finance (including some real-life case studies). You can download that instantly here.

Property Forum's CEO @Nicholas Wallwork has significant property development and funding experience, so I've asked him to jump on this post and share his knowledge with you. I will also PM you the details of a brilliant specialist finance broker that we work with. They would happily chat you through the various finance options you could consider and the pros and cons of each.

Which part of the UK are you looking in for your first development project?

You might also find this episode of our recent Chat Show Podcast helpful to watch (as it's a property development special).

Please keep us updated of your progress and let us know if there's any other areas you need support with

 

[diyhelp]

I may stand corrected by others but if this is your first property, should you not just buy a property which is fit to rent already? Maybe taking on a renovation for your first time property is a step too far?

 

[Nicholas Wallwork]

looking for some advice really, I am completely fresh to property development as in I am literally only looking into It all now, I have read a few different pieces that bridging loans seem to be popular for first time buyers to renovate and resell. can anyone share experiences they've had doing this or give advice on bridging loans? many thanks

Hi Robbie,

Bridge loans are only really needed when the property is in-habitable and thus a traditional mortgage or BTL mortgage won't be possible... As you're a first time buyer (in that you don't own any homes at all? or just no investment ones?) then a good strategy might be to buy it to live in it (as your home) and rennovate gradually. This was you won't pay any tax as it's your PPR (Principal Private Residence)... But again if it's not habitable (normally defined loosly as a working kitchen, bathroom and sleeping area) then a bridge loan might be your only route...

Anyway definitely speak to our recommended broker: https://www.propertyforum.com/property-finance

They will be able to advise on the best loan for a particular property.

Good luck and please use the Forum to keep us posted!

 

[Longterminvestor]

As Nick mentioned, a bridging loan is only relevant for a property which is inhabitable. I would also reiterate the common, is it not a step too far to take on a renovation as your first property investment? Might it not be more sensible to find a habitable property which you can rent out straightaway to create an income flow? Then you can look at other developments in the future. Find your feet first and then spread your wings.

 

[bernetec]

A bridging loan is not relevant when buying real estate or significant assets. If you want to purchase a house for resale or further ownership profitably, I advise you to do the following. Take a loan amount of money. Buy an apartment or a retail space with it and rent it out. Every month you will receive rent, used to repay the loan. Thus, you do not burden yourself with unnecessary expenses, and you will have a suitable property in the future. When my company was on the verge of bankruptcy, I turned to https://www.antonybatty.com. They advised me to take out a loan to protect myself.

 

[pattymy55]

wow

 

[ManchandaRealtors]

manchandarealtors..com is the best Real Estate Consultancy Company to Buy/Sale/Rent Residential/Commercial and Industrial Property anywhere in Gurgaon, India

 

[DokottoYumey]

When I had the opportunity to improve my living conditions and move closer to the coast, a bridge loan was the only option I had not to miss out on a house I liked. Mortgage Broker Essex, who was recommended to me by friends, explained the upcoming deal. Since the house I was leaving was also in a good neighborhood, it didn't take long for the bidders to show. So the bridge loan I had taken out for the down payment on the new house paid off quickly. If you buy real estate, find a good brokerage firm with knowledgeable employees.

 

[23reeven]

If you are not afraid of a high interest rate and you can pay it all on time, you can take the loan.

 

[23reeven]

But a buyer wasn't found for a long time and didn't know where to get the money from. And one day, he borrowed money from me and spent it all in wild card city australia online gambling. He miraculously won and was able to pay off the loan. It was a risky move on his part. But he said it was better not to take out a loan because statistically, 1 in 4 can't pay back the bank. It's better to put money aside for real estate. But tying yourself up with a loan is not a good idea.

 

[Gusdonvaleir]

If you’re a first-time buyer, I understand how scary it might seem to buy a house for the first time.

 

[MechJony]

"If you’re a first-time buyer, I understand how scary it might seem to buy a house for the first time. I’ve been in your shoes a couple of years ago.
The only advice I can give you is to find a good mortgage broker. In my case, I worked with Mortgage Broker Bradford. He helped me with all paperwork for the bank and guided me through the whole process until I moved to my house. We weight all the options, and I explained my current financial statement.
I can’t suggest you anything else since I have no clue about your financial statement."