bridging loan

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robbiefltn

New Member
looking for some advice really, I am completely fresh to property development as in I am literally only looking into It all now, I have read a few different pieces that bridging loans seem to be popular for first time buyers to renovate and resell. can anyone share experiences they've had doing this or give advice on bridging loans? many thanks
 
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totallyproperty

Administrator
Staff member
Hi Robbie, welcome to the forum! I've not personally used a bridging loan but we do have a free ebook you can download that talks about all types of property finance (including some real-life case studies). You can download that instantly here.

Property Forum's CEO @Nicholas Wallwork has significant property development and funding experience, so I've asked him to jump on this post and share his knowledge with you. I will also PM you the details of a brilliant specialist finance broker that we work with. They would happily chat you through the various finance options you could consider and the pros and cons of each.

Which part of the UK are you looking in for your first development project?

You might also find this episode of our recent Chat Show Podcast helpful to watch (as it's a property development special).

Please keep us updated of your progress and let us know if there's any other areas you need support with :)
 
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diyhelp

Active Member
I may stand corrected by others but if this is your first property, should you not just buy a property which is fit to rent already? Maybe taking on a renovation for your first time property is a step too far?
 
Nicholas Wallwork

Nicholas Wallwork

Editor-in-Chief
Staff member
Premium Member
looking for some advice really, I am completely fresh to property development as in I am literally only looking into It all now, I have read a few different pieces that bridging loans seem to be popular for first time buyers to renovate and resell. can anyone share experiences they've had doing this or give advice on bridging loans? many thanks
Hi Robbie,

Bridge loans are only really needed when the property is in-habitable and thus a traditional mortgage or BTL mortgage won't be possible... As you're a first time buyer (in that you don't own any homes at all? or just no investment ones?) then a good strategy might be to buy it to live in it (as your home) and rennovate gradually. This was you won't pay any tax as it's your PPR (Principal Private Residence)... But again if it's not habitable (normally defined loosly as a working kitchen, bathroom and sleeping area) then a bridge loan might be your only route...

Anyway definitely speak to our recommended broker: https://www.propertyforum.com/property-finance

They will be able to advise on the best loan for a particular property.

Good luck and please use the Forum to keep us posted!
 
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Longterminvestor

Administrator
As Nick mentioned, a bridging loan is only relevant for a property which is inhabitable. I would also reiterate the common, is it not a step too far to take on a renovation as your first property investment? Might it not be more sensible to find a habitable property which you can rent out straightaway to create an income flow? Then you can look at other developments in the future. Find your feet first and then spread your wings.
 
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