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What is a Revolving Credit Facility?
A revolving credit facility is essentially an overdraft facility on steroids!
Using your property portfolio as security your revolving credit facility against and allow you to draw funds as you need them.
Unlike refinancing your property with a buy to let mortgage you’re able to draw on your facility, pay it back and repeat that as often as you need to.
Because you’re only paying interest on the funds you’ve borrowed, you’re in full control of your loan, how much you have at any given time and when you repay it.
We can also arrange a revolving credit facility for your trading business.
We’ve been arranging funding since 1997 and, if you’ll forgive us for boasting but we think we’re quite good at it!
In fact – 7 x UK Best Broker Awards back us up in that assertion, so does our 5 star customer feedback.
So -for your buy to let mortgage needs, or anything else funding – make sure you use a broker you can trust.
What can I use a Revolving Credit Facility for?
There’s a huge range of potential uses for your revolving credit facility, here are a few common uses but the potential is that you can use the funds for whatever you need.
- As deposit for property purchases
- To pay outright for an auction purchase before refinance
Alternatives to a Revolving Credit Facility
A revolving credit facility is perfect if you need to draw funds down, repay them and reuse the facility during the course of it’s term.
If that’s not your intention then it can be better to use cheaper options like a buy to let mortgage, a commercial buy to let or a more standard bridging loan.
Bridging finance & short term funding
For short term property finance needs a bridge loan is the perfect solution. It allows the purchase or capital raise against a property with the exit then being onto a term mortgage or the sale of the property.
A bridging loan can be used for any one of a range of reasons, some examples being;
- Auction Purchase – Where speed is key.
- Refurbishment of a dilapidated property.
- Conversion of a property (often commercial to residential)
- New property development
- Capital raising for property, business or any (legal) purpose.
Buy to let mortgages
As an alternative to a line of credit, considering a remortgage or second charge loan on the portfolio whilst being less flexible, will be cheaper overall.
Check our our how to get a buy to let mortgage guide here.
Apply for a professional landlord mortgage here.
Commercial buy to let mortgages
For portfolio owners in commercial property a commercial buy to let mortgage could be the alternative to a revolving credit facility.
Commercial buy to let mortgages are available for virtually any property types including;
- Shops and semi-commercial properties.
- Hospitality businesses like Hotels, Pubs and Restaurants.
- Workshops and trade counters
- Industrial units and estates
- Farms and land
Find out more about commercial investment mortgages
Apply for a portfolio landlord mortgage here.
Contact us now on 0808 164 2364
Acorn.finance – 4th Floor, Silverstream House, London. W1T 6EB