Securing Your Buy To Let Property – Quickly!

The use of property loans for the purchase of buy to let investments has exploded recently due to a number of factors:

  • Enforcement of MMR. (Mortgage Market Review rules.)
  • The rapid rise in house prices.
  • High street lenders imposing un-commercial terms.

Thanks to the commercial approach of the financial regulators, the 2014 MMR affordability assessments don’t apply to most temporary loans. This is mainly because of the short-term nature of secured finance; the loan term is normally always less than a year and interest is often rolled up.
However, MMR delays in the mainstream mortgage market, in particular in the areas of buy-to-let have affected a large and growing number of investors. This has led to many buy to let investors actively choosing to exclude the traditional high street lenders from the buying process.
Short term Buy to Let Bridging Loans allows purchasers to buy quickly at the right price, find a tenant for the buy to let property, and then seek funds in traditional markets at lower rates with the benefit of having income from the tenant already in place.
Traditional mortgage lending from the high street is so under pressure due to MMR, that lenders are forced to deal with the simple cases first, otherwise the problem would be even worse. This leaves Buy to Let and Commercial lending at the bottom of the pile so to speak. Recently, @Pledge have been able to rescue a number of property investment projects where traditional lenders have been too slow to react or have tried to impose such rigid regulations that borrowing from them has been impossible.
With a growing awareness about what secured short term finance can allow property investors to do, quickly and efficiently, without jumping through hoops and the rapid growth in specialist lenders such as @Pledge means the main stream route has seen a sharp decline in demand from property investors.
In contrast @Pledge have seen a huge increase in lending over the last 2 years, and the vast amount of enquiries they receive everyday confirms that the market for secured property loans and the flexibility they provide is only getting bigger.
For advice on your property loan requirements please contact @Pledge today on 0800 810 1111.