Which types of property can a residential bridging loan be secured on?
You can secure a residential bridging loan on the following types of property as long as you or members of your family don’t intend to live in them:
- development projects
- restoration projects
- self builds
- semi commercial (where a minimum of 40% of available space is used for residential purposes)
Particularly for development projects, you may struggle to find a mortgage because of a property’s current state of repair.
With a residential bridging loan, you are able to purchase the property and fund the renovation. Following completion of the building works, you then apply for a buy-to-let or HMO mortgage to pay back the bridging loan.Back