Bridging finance
Bridging loans are short-term loans used by property buyers who are expecting to get a mortgage from the bank but cannot wait for the approval. For example, a landlord might need to convert or refurbish a property for the rental market, but would not qualify for buy-to-let finance until after the work is done. As a private investor, you can invest in funds that pool bridging loans, in order to spread the risk across several borrowers. It’s a well established business, but the minimum investment in these funds is typically around £25,000.
Has anyone got any experience with this?
I am looking to either sell my property that I own with my brother or buy him out by remortgaging and renting it. option 2 is to sell and use the money and invest in bridging.
thoughts?
Bridging loans are short-term loans used by property buyers who are expecting to get a mortgage from the bank but cannot wait for the approval. For example, a landlord might need to convert or refurbish a property for the rental market, but would not qualify for buy-to-let finance until after the work is done. As a private investor, you can invest in funds that pool bridging loans, in order to spread the risk across several borrowers. It’s a well established business, but the minimum investment in these funds is typically around £25,000.
Has anyone got any experience with this?
I am looking to either sell my property that I own with my brother or buy him out by remortgaging and renting it. option 2 is to sell and use the money and invest in bridging.
thoughts?