Editor's note: This brief was summarised by The Property AI Newsroom from a report by PropertyWire. Read the original article for full details.
United Trust Bank Completes £505,000 Bridging Loan for Essex Buy-to-Let
United Trust Bank has completed a £505,000 unregulated bridging loan for a property investment company to acquire and refurbish a four-bedroom detached house in Leigh-on-Sea, Essex. The 75% loan-to-value facility enabled the borrower to purchase the property and carry out a £50,000 refurbishment programme over eight weeks.
The property was subsequently refinanced onto a buy-to-let mortgage and added to the investment company’s rental portfolio. The deal was introduced by Brightstar, whose deputy CEO, Bradley Moore, stated that the lender instructed a valuation on the same day the application was received. Documentation was collected in person to expedite the underwriting process, allowing the purchase to complete on schedule.
This transaction follows a standard bridging-to-buy-to-let refinancing model, where short-term finance is used for acquisition and improvement before switching to longer-term rental finance. The eight-week refurbishment period aligns with typical timescales for light renovation projects in the residential investment sector.
The bridging finance sector continues to serve property investors who require short-term funding for refurbishment projects ahead of arranging longer-term mortgages. The buy-to-let sector has faced ongoing challenges, with new build housing listings falling to their lowest level since 2017, potentially creating opportunities for investors targeting existing stock for refurbishment.
Source: PropertyWire