Revolving credit facilities

Revolving credit facilities. For active investors and portfolio landlords, a revolving bridging facility is underwritten and secured once, typically up to 75% LTV, over terms of 6 to 24 months and in some structures up to five years, then drawn, repaid, and redrawn repeatedly. Interest is charged only on funds drawn, valuation and legal work are done once rather than per deal, and an approved facility lets a buyer bid at auction with funding already in place. Loosely comparable to an offset mortgage in charging only on net funds used, though true revolving mortgages on investment property are generally unavailable below around £1 million of borrowing, and then only through a limited number of private banks, which makes the revolving bridge the closest practical equivalent. Some lenders apply non-utilisation fees on the undrawn portion; factor these into cost planning. Best suited to experienced borrowers with a defined end-of-term exit.