Assisting a First-Time Landlord with a Commercial Investment

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At Market Financial Solutions, we pride ourselves on being able to provide multiple ways forward for our borrowers. Across our product range, we can accommodate first-time buyers through to seasoned portfolio investors.

On this, a broker representing a client with major refurbishment plans, may approach us for a Permitted & Light Development Bridging Loan. The borrower may want to extend a recently acquired pub to include space to serve food, and accommodate more outdoor seating.

But, while this plan may be valid, the borrower’s circumstances may require a more robust option. Our refurbishment bridging loans are primed for this kind of strategy but with a term length of between 3-18 months, it may not provide enough leeway for a new property investor trying to find their feet.

As such, our Bridge Fusion product may be better suited for this type of client. With terms of up to 24 months (plus a discretionary 12-month extension), alongside lower interest rates over the long-term, it can support first-time commercial landlords as they work through their initial challenges.

With Bridge Fusion, this kind of borrower could benefit from a flexible funding solution that would minimise outgoings during the renovation period. To add further flexibility, we could roll up 12 months of interest, easing the client’s cash flow situation, while providing time to complete the work, and raise the value and potential of the property.

What’s more, with no early repayment charge after 20 months, the borrower could look at their exit options in less than two years if their investment proved successful more quickly than anticipated. When the refurbishment is completed, the borrower should be in a better position (with more experience to boot) to secure long-term finance for the exit strategy.

Or, should this not be the case for whatever reason, they could look to sell the pub at a higher price than they bought it, which would also be a suitable option for a Bridge fusion exit.

FAQs

Do you support first-time buyers, first-time landlords and first-time commercial landlords?

Yes, we do. On our residential bridging products we can consider first-time buyer and first-time landlords. For our residential buy-to-let products we can consider first-time landlords with a minimum income of £30k from employment, self-employment or a private pension. If you are looking for a commercial buy-to-let mortgage, you need to own a residential BTL property already to be eligible.

What exit strategy options are acceptable for a bridging loan?

Sophisticated bridging solutions like Bridge Fusion or Refinance Bridging Loans are designed with multiple exit options to give investors confidence and breathing room. This could be an exit to mortgage or refinance to transition to a commercial BTL mortgage once the renovation is complete.

Another option could be the sale of the property with a higher value post-refurbishment to repay the loan.

If plans change or delays occur, like in conversion projects, refinance bridging loans ensure continuity and avoid falling behind.

This multi‑route strategy ensures that whether the renovation is accelerated or delayed, the investor has a structured plan to exit, reducing risk and pressure.

How does interest roll-up work in bridging finance, and why is it useful?

Interest roll-up means that instead of making monthly payments, the interest is added to the loan balance and paid at the end of the term. This feature allows the borrower for example to focus their cash flow on property improvements rather than servicing debt during a critical stage of renovation.

This approach is particularly beneficial when the property doesn’t yet generate rental income, cash is tied up in refurbishment costs and speed and flexibility are priorities.

At the end of the loan, the rolled-up interest and principal are repaid together – usually via refinancing or sale.