UK Landlord Forum / Life

Hi there,
I'm currently looking for my first property development project (will probably be buying from auction) and just wondered if anyone has any advice on which financial product would be best for me. I will (hopefully!) be turning around my properties in about 6-12 weeks. I've read that with a lot of mortgages you have to pay early redemtion fees so would a bridging loan or other product be best? Any help anyone has to offer would be greatly appreciated!

Hey lealea,

Welcome to the forums.

How much are you looking to spend? And how much deposit do you plan on putting down?

Off the top of my head, you should probably look out for the following issues:

1) as you already mentioned, some mortgage policies do have an early repayment penalty. You need to find a plan that won't charge you that penality. However, plans like that usually have higher interest rates. By the way, interest rates are due to drop in the coming months, so I would wait a bit before applying for a mortgage.

2) kind of obvious, but you should get an interest-only mortgage.

3) depending on how much you need to borrow, you could finance your loan in other ways (refer to the questions in my previous post)