Over recent years the idea of buying a derelict property cheaply, doing it up (with some stress and heartache on the way), before restoring it to its former glory and selling it on for a healthy profit, have been popularised. However, typically these properties are deemed “unmortgageable” because they are not immediately habitable.
Not only can turning an ugly duckling of a property in to a swan be financially rewarding, but many property developers find it a hugely satisfying way to generate income, and quickly become addicted to the process!
However, buying an “unmortgageable property” is not as straight forward as buying other types of property simply because of the fact it can’t be bought with a mortgage, so the buyer has to find another way to purchase the property.
Bridging loans however are a very popular option for buying property which is unmortgageable until it has been renovated. Once the property has been renovated and made habitable, the owner can then apply for a mortgage for the property.
A bridging loan can be a great way to secure the property that you want, to renovate and sell on, when a traditional mortgage is not available. The cost of this sort of finance means that it should never be considered a long-term solution and should only be considered within a broader plan of getting a mortgage. It should be made sure, before you enter into a bridging loan, that you have these long-term arrangements in place. Speaking to a knowledgeable broker, like Ascot can not only ensure your bridging finance arrangement is the cheapest and most suitable for you, but they can find and arrange the mortgage which you may require to follow on from the bridging finance. Please contact us to find the best bridging finance quote available.
The Financial Conduct Authority does not regulate bridging finance.