How Much Can I Borrow?
Our funders can secure against your portfolio up to 70% of the open market value on a first charge basis, or 60% on a second charge basis. We currently have funding sources who are looking to pre-agree facilities up to £1,000,000, although we may be able to increase this with strong security.
Is it More Expensive Than a Bridging Loan?
No, as a matter of fact, as you only pay for the money when it is drawn down and don’t have to keep paying arrangement fees, it often works out cheaper than traditional bridging loans.
How Quickly Can I Complete on a Purchase?
As your facility is already agreed and ready to draw down, it is often possible to complete on a purchase in under a week. It is of course crucial that the full legal process and other checks are completed to protect yourself, but this will be purely for your own benefit, not the lenders.
Does The Lender Insist on a Survey Report For Every Property I Buy?
No, as the security for this sort of product is either your existing portfolio, or a single property with sufficient equity, there is generally no need to complete a valuation report on the new property, although buying a property without may be risky on your part.
The savings can continue as you will only ever be charged standing bridging loan rates, regardless of the condition of the property you purchase and the works you plan on completing. With standard property refurbishment loans the cost of borrowing can often increase significantly, something that property hunting licences can protect you against.
Why Go For a Property Investor Hunting Licence?
A property hunting licence allows you to purchase properties under value, extend and refurbish, or even buy currently unmortgageable properties. This gives you an excellent opportunity to add value to your portfolio, meaning you may well be able to borrow what you originally paid for the property.
Many investors are increasingly using this method to build their portfolios quickly, meaning they no longer have to save up a new deposit every time they want to buy a new property.