High interest rates have slowed the traditional buytolet market, yet committed investors are still hunting for value—often at auction, where cash on the table wins the day. One landlord with a sizeable, lowgeared portfolio asked us how to keep buying without suffering the repeat costs of individual bridging loans. Against a backdrop of uncertain growth forecasts and the Bank of England signalling it will keep policy tight until inflation is firmly under control, flexibility has become as important as outright price.
Instead of arranging a standalone bridge for each new purchase, we suggested a revolving credit facility (RCF). Secured by second charges on his existing properties, the £500,000 line remains available for two years; the client can draw, repay, and redraw without extra fees, giving him effectively a pot of privatebankstyle capital that lands in his account within 48 hours. That speed means he can bid aggressively when opportunities arise, while only paying interest on the balance actually in use—a valuable hedge when the economic outlook is still mixed.
“The market keeps shifting, so being creative with structure beats chasing the absolute cheapest rate,” says John Gow. “This facility gives our client 100 percent of the cash he needs for the next few deals, without the drag of fresh valuations and arrangement fees every time. In a competitive environment, that sort of agility is a real advantage.”