Are you fed up with paying out twice before you see the cash from your property investment?
Some forms of bridging finance or loans are essential if you are buying property on a regular basis. Whether you are selling one property to buy another, or you're just adding a new property to your portfolio, you'll probably need some form of finance to tide you over whilst the sale goes through. Traditional bridging loans are expensive, and you need to pay both for the original mortgage and the re-mortgage that lets you take cash out of your property.
Bridging finance and loans for below-value property
Finding a below-value property is the property developer's goal. The ability to buy a property cheaply, invest a little in it and sell it on at a profit is how a property developer makes his or her money. If you're just starting out in property development and you find a below-value property to buy, you'll want to know how to get the additional equity out of your purchase as soon as possible. Unfortunately, if you choose the traditional route, you could end up paying twice as much as you need to in fees and valuation costs. This is simply because you have to arrange two mortgages: an initial mortgage to buy the property at its sale price, and a re-mortgage for the full value that lets you take out the cash you need. You will need to pay two valuation fees; two sets of solicitors' fees and you will also have to make sure that your first mortgage doesn't have a redemption penalty on it. This means that your mortgage is likely to be at a higher interest rate. If you forget about the redemption period, you could end up paying a huge fee in order to re-mortgage.
All this, just for a simple bridging finance or loan product? It's no wonder that property buyers are looking for an alternative. A way to get the money you need for purchase without having to take out a mortgage, and a quick way to arrange a re-mortgage so that you can release the cash from your new property and get on with investing in your next development.
Faster Bridging Finance has developed a new approach to closed bridging loans that saves you time, money and hassle. Developed specifically to help those who invest in property occasionally or who have large property portfolios and want to be able to get cash out quickly, the service uses a dedicated mortgage broker and conveyancing solicitor so that there are no hold-ups, just a straightforward bridging deal. To find out more about how Faster Bridging Finance can help you, order your Free report now.