The Intermediary – October 2025 - Flipbook - Page 43
BUY-TO-LET
Opinion
Give clients the edge
on buying property
abroad
T
he buy-to-let (BTL)
market is in a state of
transition. Landlords
are navigating shiing
tax rules, stricter
licensing regimes
and fluctuating demand, all while
contending with higher borrowing
costs. These pressures have prompted
a more creative and free-thinking
approach to portfolio management.
For clients, that means looking beyond
the traditional mortgage model and
using bridging finance to unlock
opportunities that might otherwise
remain out of reach.
Latest figures from the Bridging
& Development Lenders Association
(BDLA) underline just how firmly
bridging has established itself in the
market. In Q1 2025, completions
reached £2.8bn, matching the record
level seen at the end of last year.
Applications surged to £18.34bn, a
55.3% increase quarter-on-quarter and
the largest spike on record.
Harnessing equity
One shi I’ve noticed in recent times,
which may have a bearing on this
business upli, is among landlords
using equity in BTL property as
a springboard to fund further
acquisitions. That might mean raising
A bright outlook for overseas buyers
ROZ CAWOOD
is managing director of property
finance at StreamBank
capital against a UK property to
purchase another closer to home, or
taking the concept across borders to
buy overseas. Either way, the principle
is the same: bridging allows an
investor to access cash quickly while
planning a longer-term refinancing or
sale as the exit route.
The global element is particularly
striking. Demand for international
property investment has been on the
rise, spurred by currency advantages,
lifestyle relocations and strong yields
in popular markets such as Spain,
Portugal and Dubai. Yet conventional
lenders rarely move fast enough
to capture opportunities abroad.
Traditional remortgaging can take
months, only to falter on issues of
affordability, criteria or appetite. For
an investor who has found the right
property at the right price, time is
oen the deciding factor.
Defined exit, fast deals
This is where bridging demonstrates
its value. By releasing equity from an
existing residential or commercial
BTL property, investors can create
the liquidity to secure a deal
overseas. Brokers play a pivotal role
in structuring this type of finance,
ensuring that the exit is clearly
defined and achievable, and guiding
clients through what may be their first
cross-border transaction. The addition
of legal fee support or valuation
flexibility can make all the difference
in giving landlords confidence to
press ahead.
A recent case illustrates the point
well. An experienced landlord
wanted to diversify their portfolio by
acquiring property abroad but needed
rapid access to capital. StreamBank
was able to provide a £650,000
bridging facility secured against a UK
buy to let property through a loan
By releasing
equity from an existing
residential or commercial
BTL property, investors
can create the liquidity to
secure a deal overseas”
structured at 65% loan-to-value (LTV),
complete with a competitive monthly
rate. Valuation was achieved through
an automated valuation model (AVM),
reducing both cost and turnaround
time, and £1,000 was contributed
towards legal fees. The investor used
StreamEdge to release equity quickly
and cost-effectively, completing on
their overseas purchase without
missing the window of opportunity.
Cases like this highlight the
practical role bridging can play in
helping landlords adapt to today’s
market conditions. It is not just
about filling short-term gaps, but
about providing the freedom to act
decisively when opportunities arise.
Whether it is refinancing a buy-to-let
to fund refurbishment, restructuring
portfolios, or releasing equity to buy
property abroad, bridging has moved
beyond being a niche product. It is
now a core tool in the broker’s kit.
As the figures show, activity in
the sector continues to rise. Brokers
who understand the possibilities of
bridging will be well placed to support
clients who need to move quickly,
think differently and look beyond
conventional finance. ●
October 2025 | The Intermediary
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