Property Investor Credit Facility 

We are seeing an increase in the number of property investors and developers adding to their portfolios with the use of a flexible property finance facility.

When secured against an existing property portfolio, these flexible facilities enable the investor to offer quick completions on new acquisitions. Many investors are taking advantage of the influx of commercial property coming to the market in the current climate, before refinancing and benefiting again from reduced rates in the term lending market.

Interestingly, many of our clients were unaware of the flexible property finance solutions available so we’ve put together the following guide. 

What is it? 

A flexible line of credit secured against your property portfolio that provides a simple and low-cost alternative for accessing funds quickly. This is sometimes referred to as a Hunting License.

What can it be used for? 

• Auction purchase 
• To finance a deposit 
• To fund an extension 
• Refurbishment and improvement 
• Refinance or working capital for business 
• Any new property purchase 

What security is needed? 

• Residential Buy to Lets 
• Commercial properties 
• Office buildings 
• Second charge on personal residential 
• One facility can be secured against multiple properties 

What amount is available? 

This varies by lender. The range available is between £25,000 and £2,000.000. The amount available is capped at 65% to 70% of the property value, less any outstanding existing loans. 

Will a lender run credit checks? 

Yes. Credit checks will be undertaken on you the borrower. You will need to be able to demonstrate that you can service the interest on the debt or repay at the end of term. 

How much will it cost? 

Download our PDF which outlines two typical pricing structures: