Commercial Bridging loan converted to Buy to Let in one package

by Howard Reuben CeMap CeRER

9:23 AM, 4th September 2014
About 4 years ago

Commercial Bridging loan converted to Buy to Let in one package

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Commercial Bridging loan converted to Buy to Let in one package

When looking at financing an investment property that is not immediately suitable for a Buy to Let mortgage the costs and stress of repaying the initial Bridging loan required after 6 month can be high.bridging loan

However Shawbrook Bank offer the ability to switch directly from their Bridging facility to their Buy to Let products with no additional processing or packaging work. Thus taking a lot of the stress and cost out of relying on another lender to complete before the loan has to be repaid. You can also raise additional capital at the same time if you have added value to the property thus releasing some of your initial investment.

This is a common concern from readers who are buying refurb or development projects they are looking to keep as long term investments

Shawbrook will also offer an existing customer discount of 0.25% up to £750,000 from the interest rate margin on the new Buy to Let product in an effort to retain their customers. Rates start from 4.75% and  arrangement fees from 1.45%.

They lend to experienced property professionals and consider applications from individuals, partnerships or limited companies, (both UK and offshore where asset and main shareholder are UK based), also trusts and ex pats with a UK credit profile.

There is only a maximum lending restriction of £10 million per customer not number of properties. Your personal income must also cover your personal expenses.

Properties that can be considered are:

  • Single let residential houses and flats
  • Portfolios including a mix of residential and commercial properties
  • Blocks of flats typically up to 20 units
  • Houses in multiple occupation (licenced HMOs)
  • Multiple flats on a freehold title
  • Student accommodation
  • Flats above commercial premises
  • Prime low yielding properties

This lender will not be suitable for all borrowers on the basis of cost or criteria, but they do specialise in financing properties that “high Street” lender would not consider.

If you need any assistance please do not hesitate to complete the form below 🙂

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Comments

Howard Reuben CeMap CeRER

11:48 AM, 4th September 2014
About 4 years ago

Thanks Neil for publishing this.

The article states "There is only a maximum lending restriction of £10 million per customer" and of course that's far more than most investors (even our most prolific property traders) require.

With short term lending rates starting at 0.65% and with the subsequent BTL mortgage product benefiting from existing client discounts, the 2-in-1 package has proven to be a huge winner for property investors throughout the UK (yes, Shawbrook lends in Scotland too!)

As a Broker with access to all of the 'right' banks, building societies and specialist lenders I should say that Shawbrook is not the only lender out there, but they are definitely one of the most innovative, investor-supporting and proactive banks (with excellent back office service) that we work with.

ps - let's not forget that they are one of the very few who lend within 6 months of purchase too!

Finally, they only work with and via an approved panel of Brokers (a bit like TMW, you can't go direct to them) so all enquiries are welcome!

Howard


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