Click here to subscribe to my YouTube channel - Many of your property finance questions can be answered there
Video Training Audio Training Events Store Blog About RYC on Facebook Ninja Workshops Login

5 steps to successful bridging

bridging finance Jun 25, 2020

Most property investors rely on mortgages to purchase properties.  Bridging as a means of financing a purchase tends to be treated with suspicion; it’s unknown territory.

The problem is that most people take their knowledge of mortgages and apply it to bridging and that’s where disaster lurks!  Here are five core facts about bridging.

1. Interest rates

With a mortgage, the...

Continue Reading...

Second charge borrowing to expand a portfolio

bridging finance Apr 09, 2020

THE QUESTION

I have a property worth £170K with a mortgage of £105K.  How much would I be able to borrow on bridging finance for another property?

THE ANSWER

The first important thing to consider is what the second charge bridging market looks like.

Not all bridgers lend if you cannot offer them a first charge.  You can’t do that, because your mortgage lender already...

Continue Reading...

Cash buyer territory

bridging finance Feb 25, 2020

If you’re nowhere near being in the position to buy properties outright, read on - there’s a way you can benefit from all the advantages of being a cash buyer, without having a huge wad of cash.

Cash buyers have advantages:

  • They don’t have to mess around applying for and getting approval for a mortgage
  • They don’t have to do battle with the mortgage lender about whether...
Continue Reading...

Bridging for beginners

bridging finance Nov 10, 2019

Like most things, the devil is in the detail!  It is easy to get bridging wrong, and many do, largely because they blunder in thinking it is easy.  It is a simple way of funding deals, but you need to understand how it works.  I have been teaching how it works and how to use it intelligently at my Ninja Investor Programme workshops since 2013.

I call bridging counter-intuitive -...

Continue Reading...

Why bridging works

bridging finance Oct 25, 2019

Property investment tends to depend on you having worked hard to save a nest egg that will provide you with a deposit to buy your first property.  If you’re planning to get into property seriously, you’ll need cash for refurbs too.  Saving up takes time.

The challenge is that you need at least 25% of the cost of your chosen property as a deposit, in order to get a...

Continue Reading...

The keys to successful bridging

bridging finance Oct 25, 2019

THE QUESTION

I've taken out a fair few mortgages in the past and I’m comfortable with that kind of finance.  I have no experience with bridging, so my questions are:

What are the key things to look for?

What would be considered a 'good' bridging deal?

What term would you normally look at, 3 months? 6? Is it easy to extend?

THE ANSWER

There are lots of advantages to using bridging...

Continue Reading...

Key bridging questions

bridging finance Oct 10, 2019

THE QUESTION

I'm new to the property investment world and looking to get my first buy-to-let.  I have two questions:

  1. If I buy with bridging loan and do a full refurb, can I remortgage earlier than six months?
  2. If I'm buying with bridging loan can I say that I'm a cash buyer or should I just say that I’m using a bridging loan?

THE ANSWERS

Question 1:  You have always been able...

Continue Reading...

100% bridging loans

bridging finance Sep 09, 2019

THE QUESTION

I need to find a bridger where I can borrow 100% purchase price. The property is being sold  20% BMV.

THE ANSWER

No commercially minded bridger will lend 100% of all costs.  Why would they take all the risk and rely on the borrower to get it right?  Legitimately they may ask, what is the borrower’s incentive to get it right when they won’t suffer...

Continue Reading...

"Cash buyers only"

bridging finance Aug 10, 2019

THE QUESTION

If an advertised (e.g. on RightMove) property says ‘cash buyers only’.  Could you use a bridging loan and still be considered.  If so, do you need to tell the agent/vendor you’re paying with a bridge?

THE ANSWER

Your understanding is correct; bridging is equivalent to cash for this type of property.  Cash buyer only properties are great to target if...

Continue Reading...

Bridging finance for your main residence?

bridging finance Jul 10, 2019

THE QUESTION

Can you get bridging finance on a house you want to live in? 

I’ve found a 7-bed detached house that looks like it’s been converted into three flats - I suspect without planning permission as it’s advertised as ‘Cash buyers only’, 

I have some development experience and could afford it on my income with a mortgage when appropriate.  I...

Continue Reading...
1 2 3 4
Close

50% Complete

Two Step

Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua.