Together and Channel Finance Group have completed a £350,000 second charge bridging loan to support a landlord’s refurbishment project. The financing enables a couple to improve a 40‑property portfolio after several tenancies ended. The primary goal was to raise Energy Performance Certificate ratings and increase rental income across the assets.
Rapid funding for portfolio improvements
The deal was finalized in just 18 hours, from submission to completion. The facility was secured at a loan‑to‑value ratio of 43% against a five‑bedroom terraced home in Glasgow. Together used an automated valuation model instead of a full physical inspection, a process that received underwriting approval within one hour. Dual legal representation from Wilson McKendrick streamlined the transaction further.
The interest‑only loan carries a 12‑month term. Borrowers plan to secure a residential mortgage within three to six months to pay off the debt. This exit strategy depends on self‑funded improvements to their primary residence. Since the loan closed, the landlords have requested funding for three additional property acquisitions as they expand their holdings.
Fast access to capital is increasingly vital for portfolio landlords who want to maintain or grow their assets. When traditional lending methods are too slow for necessary upgrades, alternative finance options provide the necessary flexibility. This transaction demonstrates how specialized lenders can adapt their processes to match the speed required by active property investors.
Speed through collaboration
Carlos Velasquez, a specialist finance and bridging manager at Channel Finance, noted that a standard case would typically require seven to ten days. He explained that the Together team recognized the simplicity of the situation and moved at a faster pace. Constant communication between the lenders facilitated the quick turnaround. Using the same Scottish legal experts, Wilson McKendrick, for both sides of the transaction removed potential friction points in the process.
“This case highlights how experienced portfolio landlords throughout the UK are still very much invested in the Buy to Let market,” said Martin Bloe, regional account manager for Scotland at Together. He added that Scotland delivers significant yields, and investors there need finance that moves at the speed they require without unnecessary complications.
A second‑charge bridging facility sits behind the primary mortgage, giving the lender a secured interest while allowing the borrower to retain the existing loan. This structure is especially useful when owners need a short‑term infusion to fund upgrades that will increase the value and income potential of their assets before a longer‑term financing solution is arranged.
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Improving Energy Performance Certificate ratings is more than a regulatory checkbox; higher scores translate into lower utility costs for tenants and a stronger marketing proposition for landlords. By upgrading insulation, heating systems, and other efficiency measures, the portfolio can command higher rents and attract more reliable occupants, which in turn supports the overall financial health of the investment.
The use of an automated valuation model eliminated the need for a physical survey, accelerating the underwriting pipeline dramatically. This technology draws on recent sales data, property characteristics, and market trends to produce a reliable estimate of value, enabling lenders to make informed decisions within a compressed timeframe.
Interest‑only repayment during the bridging period preserves cash flow for the borrowers, allowing them to allocate funds directly to the refurbishment works rather than servicing principal. Once the improvements are completed and the properties achieve better EPC ratings, the landlords can transition to a conventional residential mortgage, locking in a longer‑term, lower‑cost financing arrangement.
Following the successful completion of the initial loan, the landlords have signaled confidence in their growth strategy by seeking additional capital for further acquisitions. This appetite for expansion reflects a broader trend among active investors who rely on agile financing solutions to seize market opportunities quickly.
The collaboration between the two lenders and the shared legal counsel exemplifies how coordinated effort can remove bottlenecks. When the same solicitor represents both parties, document exchange, title checks, and settlement steps proceed with fewer delays, reinforcing the speed and confidence that borrowers value.
In a market where Buy to Let continues to deliver attractive returns, especially in regions with robust yields, the ability to secure swift, tailored financing becomes a competitive advantage. Lenders that can blend technology, streamlined processes, and close partnership with legal experts are well positioned to support landlords aiming to modernise their holdings and sustain long‑term profitability.
