Mortgage For An Investment Property

Do You Need Finance for an Investment Property Project?
If you’re looking at your financing options for an investment property or want to know how you can fund a property development First Choice Finance may have the answer for you. We can help you secure the best loan for investment property projects whether you’re planning to refurbish an existing property or build from the ground up. We focus on short-term loans with a quick turnaround time so that you can get on with your project.

What is an investment property mortgage loan?
It’s exactly as it sounds! Essentially we are talking about a loan or mortgage for any property that it is not going to be used significantly by you as a commercial or residential property. If you are thinking about buying a commercial property such as an office or a shop, take a look at our specialist page about
What types of investment property projects can I fund?
There are all kinds of investment property projects that you may want to fund. These may include buying a property to refurbish or make substantial improvements, and then sell on or rent out, or buying homes to add to a property portfolio. Or you may be embarking on a self-build project or ground-up development. First Choice Finance specialises in providing short-term loans – with terms no longer than 24 months – to people like you who want to raise funds quickly to support their property project.

These short-term bridging loans may particularly be the best loan structure for investment property if you are purchasing property at auction. This is because they can be completed in a relatively short time meaning you can meet the 28 day deadline for completion imposed by most auction houses.

How much can I borrow?
The short-term loans that First Choice Finance deals in calculate the value of the loan based on the market value of the property. This is great news for property developers and investers like you as it means that whether you can meet payments or what you actually paid for the property is not considered. Rather the lender is more interested in how you will repay the loan at the end of the loan term. You also won`t be penalised with any early repayment charges.

What are the interest rates?
Interest rates on short-term loans tend to be higher than those on other financial products. Having said that it should be remembered that as the terms are so much shorter, there is less time for interest to accrue which will clearly impact on the amount that will need to be repaid. The rate charged will depend on the property, amount you are borrowing and your credit rating.

How `short` is short-term?
Loan terms vary between lenders with the longest term for a `short-term` loan being around 2 years. If you know you will be in a position to repay the loan more quickly however, you can find loans with terms as short as a few months.

Mortgages & Remortgages 8.4% APRC. Representative Example: Borrow £120,000 over 25 years at 5.99%, £778.86 pcm fixed for 3 years at 60% LTV. Then at 8.75%, £974.86 pcm, variable for 22 years. Total payable £286,416. Total cost of credit £166,416 (including: £985 broker fee, £999 lender fee & £164,432 interest)

Late repayment can cause you serious money problems. For help, go to moneyhelper.org.uk

Established In 1988. Company Registration Number 2316399. Authorised & Regulated By The Financial Conduct Authority (FCA). Firm Reference Number 302981. Mortgages & Homeowner Secured Loans Are Secured On Your Home. We Advice Upon & Arrange Mortgages & Loans. We Are Not A Lender.

First Choice Finance is a trading style of First Choice Funding Limited of 54, Wybersley Road, High Lane, Stockport, SK6 8HB. Copyright protected.