Bridge-to-let

Short-term finance with a planned route to buy-to-let.

Intra helps property investors structure short-term borrowing around a planned transition to longer-term buy-to-let finance.

Discuss your property See how it works

+44 (0)20 7459 4822 enquiries@intra-pf.com

Stage one

Short-term bridging

Intended exit

Longer-term buy-to-let

Short term to long term

The property may not be ready for buy-to-let finance on day one.

A property can be a viable long-term investment while still being unsuitable for conventional buy-to-let borrowing at the point of purchase.

It may require refurbishment, the purchase may need to complete quickly, or the property may not yet have the rental or valuation position needed by the intended long-term lender.

Bridge-to-let combines a short-term acquisition or refurbishment strategy with an intended future refinance once the property and wider circumstances are ready.

✓Acquire quickly

✓Complete refurbishment

✓Prepare for letting

✓Refinance long term

When bridge-to-let may be considered

A temporary funding route for a longer-term investment plan.

The key is not simply obtaining the bridge, but establishing a realistic route to the intended buy-to-let refinance.

Property refurbishment

Short-term finance can potentially be used while works are completed before the property moves onto longer-term buy-to-let borrowing.

Auction purchases

A bridge-to-let structure can sometimes suit purchases that need to complete quickly before the property is refinanced.

Unmortgageable condition

Some properties may not initially meet conventional buy-to-let lender criteria because of their condition or required works.

Change of use

Where permitted, a property may require works or another transition before it is ready for longer-term investment finance.

Portfolio acquisition

Landlords may use short-term borrowing to acquire an additional property before moving onto a longer-term portfolio strategy.

Refinance after works

The intended exit may be a buy-to-let refinance once refurbishment is complete and the property satisfies lender criteria.

Bridge-to-let strategy

The whole journey needs to be considered from the outset.

The short-term facility and intended long-term refinance are connected parts of the same property strategy.

Acquire

Short-term borrowing is used to complete the purchase or refinance an existing property.

Improve

Where required, refurbishment or other works are completed during the bridging period.

Stabilise

The property reaches the condition, value and rental position needed for the intended longer-term strategy.

Refinance

Subject to criteria, the bridge is repaid using longer-term buy-to-let borrowing.

Refurbishment

Improving the property can form part of the route to long-term borrowing.

Some properties require updating before they are suitable for conventional buy-to-let lending or able to achieve the intended rental position.

Where appropriate, bridging can potentially support the period between acquisition and completion of works, with a refinance considered afterwards.

The future value, rental income and ability to refinance are not guaranteed and remain subject to valuation and lender criteria.

What lenders consider

Both stages of the strategy need to work.

The initial bridge is assessed on its own merits, while the intended refinance also needs to be realistic under longer-term buy-to-let criteria.

Purchase price

The initial acquisition cost and required borrowing form part of the short-term lending assessment.

Current property condition

The lender will consider the property's present state and the scope of any proposed works.

Expected rental income

The future buy-to-let lender may assess the property's expected rent when considering the longer-term refinance.

Works programme

Where refurbishment is involved, lenders may want to understand the proposed works, costs and expected timescale.

Future value

The expected value after refurbishment may be relevant to both the short-term facility and proposed refinance.

Exit lender criteria

The planned buy-to-let refinance needs to be realistic based on the borrower's circumstances and expected property position.

Future buy-to-let refinance

The planned exit needs to make sense under buy-to-let criteria.

Buy-to-let lenders commonly assess expected or current rental income against the proposed mortgage using their own rental coverage methodology.

Property value, rent, loan size, ownership structure and borrower circumstances can all influence the refinance available.

Explore buy-to-let

Limited companies & SPVs

Company ownership can potentially form part of the strategy.

Some bridging and buy-to-let lenders consider borrowing through limited companies and SPVs.

Where a company structure is involved, the lender may assess the company, directors, shareholders, property and proposed exit.

Intra provides mortgage and property finance advice. Independent tax and legal advice should be obtained before choosing an ownership structure.

Explore Limited Company & SPV→

The Intra approach

Consider the refinance before entering the bridge.

A bridge-to-let strategy works best when the short-term facility and likely long-term borrowing requirements are considered together.

Transaction

Understand

We establish the property, purchase or refinance requirement, proposed works, timescale and intended long-term use.

Exit strategy

Plan

Your adviser considers the intended buy-to-let refinance and whether the expected future position appears compatible with lender criteria.

Lenders

Research

We research appropriate short-term lenders alongside the likely longer-term buy-to-let route.

Bridge

Apply

Once the structure is agreed, we prepare and submit the bridging application with the required supporting information.

Refinance

Transition

When the property and circumstances are ready, the longer-term buy-to-let refinance can be considered subject to lender criteria.

Lender access

The short-term and long-term lenders may assess the property differently.

Different lenders can have different approaches to property condition, refurbishment, rental calculations, company ownership and future value.

Bridging lendersSpecialist lendersBuy-to-let lendersProperty finance lenders

Lender availability and suitability depend on the property, transaction, proposed works, rental position, ownership structure and individual circumstances.

Why Intra

The exit should not be an afterthought.

Bridge-to-let requires careful consideration of both the immediate borrowing requirement and the expected future refinance.

Understand the property

We establish the current condition, purchase or refinance requirement and intended long-term use.

Understand the works

Where refurbishment is involved, the proposed scope, cost and timescale are considered.

Consider the future refinance

Expected rent, value, loan requirement and ownership structure are considered against likely buy-to-let criteria.

Manage the transition

Our team supports the bridging application and can review the longer-term refinance when the property and circumstances are ready.

Related property finance

Explore related borrowing routes.

Short-term finance

Bridging Finance

Short-term property finance for purchases, refurbishment and refinancing.

Long-term investment

Buy-to-Let

Longer-term finance for residential investment property.

Company ownership

Limited Company & SPV

Property finance for qualifying limited company and SPV structures.

Frequently asked questions

Questions about bridge-to-let.

These answers are general. Available finance depends on the property, works, rental position, ownership structure and lender criteria.

What is bridge-to-let?

Bridge-to-let describes a short-term property finance strategy where bridging borrowing is used initially, with the intention of refinancing onto longer-term buy-to-let finance once the property and borrower circumstances are suitable.

Why would I use bridge-to-let instead of a normal buy-to-let mortgage?

A standard buy-to-let mortgage may not initially be suitable where the property requires works, needs to complete quickly or does not yet meet the intended lender's property criteria.

Is the buy-to-let refinance guaranteed?

No. The future refinance remains subject to lender criteria, valuation, rental assessment, borrower circumstances and market conditions at the time of application.

Can bridge-to-let be used for refurbishment?

Potentially. Some lenders consider properties requiring refurbishment, subject to the nature of the works, property, borrowing requirement and proposed exit.

Can limited companies use bridge-to-let?

Potentially. Some lenders consider limited companies and SPVs for both bridging and longer-term buy-to-let borrowing, subject to company structure and lender criteria.

Is bridge-to-let regulated?

The regulatory position depends on the property, purpose and individual circumstances. Some bridging and buy-to-let transactions may not be regulated by the Financial Conduct Authority.

Some forms of bridging and buy-to-let finance may not be regulated by the Financial Conduct Authority. The regulatory status of a transaction depends on the individual circumstances involved.

Your home or property may be repossessed if you do not keep up repayments on your mortgage or other loan secured upon it.

Bridge-to-let

Discuss the purchase, works and intended refinance with an Intra adviser.

Tell us about the property, what needs to happen before it can be let and how you expect the short-term facility to be repaid.

Speak to an adviser +44 (0)20 7459 4822

enquiries@intra-pf.com