FAQs
Your questions, answered
Bridging Loans
Find out more about bridging loans and how they can help your clients via our handy FAQs. If you still have questions that need answering, then get in touch with us via the link below.
A bridging loan is a short-term loan that can be secured against a property and is designed to ‘bridge a gap’ until longer-term finance can be arranged or the security property is sold.
One of the main draws is the speed at which a bridging loan can be arranged in. Terms can often be agreed within hours of an initial enquiry and funds released in a matter of days.
A bridging loan can be used for a wide variety of purposes including purchasing a property (including via auction), preventing a chain break, releasing equity and funding a refurb.
We secure against residential properties, commercial properties or mixed-use assets. We do not lend against land, care homes, places of worship, schools, trading pubs and hotels or property that is not based in England or Wales.
At MT Finance, our processes are designed to provide finance quickly. Terms can be agreed within hours and, depending on your client’s circumstance, funds can be released in a matter of days.
A bridging loan from MT Finance ranges from a minimum of one month to a maximum of 12 months for regulated bridging and 24 months for unregulated bridging. After one month, there are no fees or early repayment charges for repaying the loan before the end of the term.
Yes, we will lend to first-time investors.
Yes, we will lend up to a maximum of 70% loan-to-value (LTV) of the open market value (OMV) or 90% of the undervalue purchase price, whichever is the lower figure.
We will take a view on a loan request, even if the applicant has a bad or adverse credit history, has previous CCJs or is in arrears. Additionally, no personal guarantors are required and no credit scoring will take place. Instead, we will focus on the security asset and the applicant’s exit strategy.
- Valuation fee: This covers the surveyor’s costs for carrying out the property valuation
- Arrangement fee: The cost of setting up the loan, usually around 2% of the loan
- Administration fee: The cost of our administration of the loan
- Legal fee: This is usually charged at a set rate and covers the legal fees associated with the completion of the loan.
There are no other up-front fees, exit fees or early repayment charges.
No, we do not charge any exit fees. Our loans are subject to a minimum one-month term, after which your client may repay the loan early or make lump sum payments without incurring any fees.
Yes. We do not charge early redemption fees after the initial one-month term has lapsed.
In order to provide your client with indicative terms, we will require the information found on our enquiry form, including loan type and amount required.
A first legal charge is a principal loan on a property. In the case of first legal charges, the lender takes precedence above all others; being the principal lender of the loan. MT Finance can provide first charge loans on properties where the client and/or any family member do not live or intend to live.
A second legal charge is secured against a property that already has a loan or mortgage outstanding. Second charge loans require consent from a first charge lender. For unregulated bridging loans, MT Finance can provide a second legal charge on a residential property where your client or their family members live if it is for business purposes.
Buy-To-Let Mortgages
Find out more about our buy-to-let mortgages via our FAQs. If you still have questions that need answering, then get in touch with us via the link below.
A buy-to-let mortgage is a specific type of mortgage which allows landlords and investors to purchase or remortgage a property before letting it out to tenants.
Yes, we lend to individuals and limited companies.
Yes, we will lend to first-time landlords – and first-time buyers – who are purchasing a standard residential property. We require at least 12 months of experience for purchasing or remortgaging an HMO or MUFB property.
Yes, we do.
We accept a minimum income of £15,000 per annum if the applicant has no landlord experience. If the applicant has more than 12 months' experience than we do not require a minimum income.
- Application fee: This is an upfront fee which covers the administrative costs of processing an application
- Valuation fee: This covers the surveyor’s costs for carrying out the property valuation
- Product fee: This can be paid upfront or capitalised to the loan as part of the gross total
- Transactional fee: This covers the distribution of the money
- Early repayment charge: This will only be incurred if the borrower exits their buy-to-let mortgage early. Please refer to the product guide for specific costs.
We are unable to offer consumer BTL and we can’t lend on a property which the borrower has previously resided in and when they have an absence of further properties.
Our ICR stress testing starts at 125%. This rate is available on our five-year products across all tax brackets.
We use Method and Appraisers UK.
For buy-to-let mortgages, we lend against the open market value (OMV).
If your client has requested an HMO investment valuation then this is something we will consider for larger and more complex HMO and MUFB properties but this is assessed on a case-by-case basis.
We will consider holiday lets and we stress against the property’s Assured Shorthold Tenancy (AST).
Commercial Mortgages
Find out more about our commercial mortgages via our FAQs. If you still have questions that need answering, then get in touch with us via the link below.
A commercial mortgage is a mortgage specifically aimed at borrowers who are looking to purchase or remortgage a property for commercial use.
Yes, we lend to individuals and limited companies.
Our standard commercial product covers: automative, children’s day nurseries, data centres, garden centres, general industrial, healthcare, hotels, guest houses, B & Bs, hostels, offices, retail, storage, student accommodation and food outlets.
Our specialist commercial product covers: car parks, education, energy, leisure, science & technology, logistics, sports venues (no golf courses or football clubs) and utilities. Care homes and petrol stations are by referral only.
No, we do not lend against land.
Yes, we lend to individuals and limited companies.
We accept owner-occupier borrowers subject to the property being in an opco/propco structure.
Yes, we do.
We accept a minimum income of £15,000 per annum if the applicant has no commercial landlord experience. If the applicant has more than 12 months' experience than we do not require a minimum income.
Our ICR stress testing is set at 125%.
On commercial mortgages, we lend against the 180-day value.
- Application fee: This is an upfront fee which covers the administrative costs of processing an application
- Valuation fee: This covers the surveyor’s costs for carrying out the property valuation
- Product fee: This can be paid upfront or capitalised to the loan as part of the gross total
- Transactional fee: This covers the distribution of the money
- Early repayment charge: This will only be incurred if the borrower exits their buy-to-let mortgage early. Please refer to the product guide for specific costs.
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