Funding Issued Within a Week for a First Time BTL Landlord

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We often need to move quickly for our borrowers, but this can be made difficult when our clients are making their first ever investments. That lack of experience can make it harder to underwrite a deal, and get a loan issued asap.

We see these kinds of cases often. A first-time landlord may require a bridging loan to secure a residential opportunity they found, quickly, for example. Rival buyers might be starting to take interest in the property too, and so they need capital within mere days to secure the asset before it’s too late.

As a first-time landlord would have no other investment assets however, many lenders would have trouble ascertaining how secure this investment would be. But, we are open to first-time landlords. To cover our bases, we would work closely with the borrower to determine how ready they were.

A Serious Property Investor

As we may have no other investments to compare to, we would look into the borrower’s details to ensure they were prepared for what was ahead of them. We’d want to make sure they took their first BTL purchase very seriously.

So, for example, say they aimed to target young professionals with an HMO situated just outside a city centre. This would be a prime location for the target market involved. The underlying borrower would have showed us clear evidence that they had strategically, and sensibly planned for the long-term with this investment.

We’d then look to see if this planning was (or would be) proving successful. In this set up, we’d expect, and hope to see that potential tenants had expressed an interest in the property. This interest would also help with a potential refinancing exit strategy, as high street lenders would likely feel more comfortable with a landlord who had their affairs in order.

Seeing all this would minimise our risk in lending to a first-time landlord. It would allow us to deliver funding quickly, allowing the borrower to lock-in their BTL asset.

A Surprisingly Optimist Outlook

It’s not surprising, to us at least, that there may still be keen first-time landlords out there in the property market. Despite all the recent budget rhetoric, most landlords (84%) plan to stay in the BTL sector without making changes to their investment portfolio over the next 12 months. In fact, 4% expect to actually increase their portfolio size.

Those who plan to expand may be in for a few months of great potential. Some landlords are likely to sell up over the coming months, creating opportunities for buyers.

We’ll be there for these buyers as they look to take advantage while they can.

FAQs

Why do borrowers need flexible repayment options on a bridging loan?

Unlike standard mortgages, bridging loans are designed to be short-term. But no two borrowers have the same plan for paying them back. Some may want to make monthly interest payments, while others prefer to roll up interest to ease cash flow until their exit, such as a property sale or long-term refinancing. In this case, the borrower needed a solution that wouldn’t stretch their finances each month, so Market Financial Solutions structured a facility with a repayment plan that suited their wider strategy.

How does Market Financial Solutions tailor repayment structures to each borrower?

We know that real-world circumstances don’t always fit a rigid model. From day one, we take the time to understand how and when the borrower plans to exit, whether that’s through a refinance, sale, or other arrangement. By building the repayment plan around that, we help clients avoid unnecessary financial strain. This flexible approach is one of the reasons brokers and borrowers trust us when other lenders won’t adapt.

What should borrowers consider when planning how to repay a bridging loan?

Having a clear exit plan is crucial. Whether you’re refinancing onto a longer-term mortgage, selling the property, or releasing funds from another asset, it’s important to check that the timeline makes sense. We work with brokers and clients to stress-test that plan upfront – helping ensure that the chosen repayment option is realistic and achievable. That way, there are no nasty surprises at the end of the term.

How does Market Financial Solutions ensure transparency when offering flexible terms?

Flexibility means nothing if the costs or conditions aren’t clear. We’re upfront about how each repayment option works, what interest will look like over the loan term, and any requirements for rolled-up or serviced interest. Throughout the deal, we stay in touch with borrowers and brokers to make sure everyone understands the plan. It’s this open approach that helps clients use our bridging loans confidently, knowing that when we say yes, we mean it – and they’ll never be left guessing.