Funding

Buy to Let

There are over 50 lenders currently offering bridging or short term finance, and the terms and conditions will vary a great deal between the various lenders, but the costs can be quite onerous and costs should requested in writing prior to signing any forms.

The golden rule is do not consider any lender who is charging large admin or management fees up front, it nearly always ends in tears. You will find that once you have been accepted by the lender and you have had a facility letter which sets out the terms and conditions of the bridging loan and this has been accepted, you will be expected to pay the survey fee and the legal fees that apply to both you and the lender.

Once the initial fees are paid the application can proceed very quickly and complete within the three week period. The lender will charge an arrangement fee which will be deducted from the loan at completion. There maybe an exit fee and you should check your facility letter to see if this is included in your terms and conditions.

The fees will, as already stated vary between lenders, and will increase depending upon the size of the loan, the larger the loan the higher the fees will be.

Always, always, make sure that you get a facility letter as soon in the process as you can to avoid any nasty shocks in the total costs that you will be expected to pay. Bridging loans are not cheap, and you have to factor into your plans all the costs, to make sure that you are still going to be in the black.