Property finance comes into two main categories – short term or long term finance.
Short term property finance – Bridging loans.
Bridging finance does just what it says on the tin – gets you from one place to the next.
A bridge loan can be used for a wide variety of purposes but is always a short term loan, normally less than two years (24 months).
Some of the common uses for short term loans are;
Property finance for ground up developments
Refurbishment finance for unmortgageable property
Funding an auction purchase needs a speedy response
Long term property finance – Mortgages and Commercial Mortgages.
For investors or business owners intending to retain property a bridging loan is not a suitable long term solution. The answer is some form of commercial mortgage or residential mortgage.
Since a Buy to Let portfolio is essentially a business, specialist buy to let products including those aimed at corporate borrowers (limited companies) or trusts are more widely available through specialist businesss finance brokers such as Acorn.finance
Having in-house mortgage brokers as well as commercial brokers also gives us access to a wide variety of mortgage lenders and the ability to use the equity in your own home to invest in your business where that’s the most appropriate course of action.
Mainstream and specialist mortgages for your own home
For any business which needs it’s own premises – a commercial mortgage
Property investment for all property types
Buy to let mortgage for commercial property and mixed use.
Use the links above to find out more about long term business mortgages for your enterprise or short term bridging loans for property transactions or just complete the short form below and one of our finance experts will get in touch with you to discuss your needs in more detail. Our panel of lenders is growing day by day so there’s always a new property finance product not shown on the website yet.
There’s no obligation – our consultation will be free of charge.
Or just get in contact and let’s discuss your property finance needs.
Property finance FAQs
Although the interest rates charged on a bridging loan are higher than buy to let mortgage rates or commercial mortgage rates they are payable for a short time. So the expense should be offset by the profit forecast or the lower long term mortgage rate we’ll arrange to repay the bridging loan.
The opportunity which can be taken up using the bridging loan should be enough to make it worthwhile
Generally speaking if your business is paying rent for premises, mortgage payments for a similar property will be less than you’re paying now, so that’s a great start. Lenders will look into your ability to pay and will often want some form of deposit but there are sometimes ways to raise that through “alternative means” so it’s always worth the conversation!