Despite the challenges of the market there was one specialist product that saw a large uplift in 2020 and this was the use of bridging finance for funding residential, commercial and BTL properties.
So why is bridging more relevant in todays market? Here are some stand out reasons:
- It’s quicker – auction purchases dictate a need for speed and some transactions have to complete in weeks & not months!
- Stamp duty deadline – the fear of not completing by 31st March has given rise to more bridging enquiries.
- Property chains are collapsing – clients with good equity can buy their next property without their sale completing.
- Bridging criteria is more flexible – typical high street lenders are not as keen to lend outside of policy or look at properties needing some attention.
- Good investment opportunities to be had – pub or shop conversions to residential are especially popular.
- More properties are being purchased below market value – there’s often a story behind this & this is usually accepted by the bridging lender.
- Self builds & small builder developments are growing in popularity – with less high street lenders keen on the smaller loans this is something for our lenders.
Let’s be honest you’ll rarely get a call from a client asking for a bridging loan, but you will get the some of the challenges listed in bold above and it’s down to you to join the dots.
The GOOD NEWS - we are here to help too:
- Experts in all things bridging – dedicated bridging team.
- Rates from 0.49% per month.
- All types of bridging considered.
- Over 20 lenders on our panel – a lot of our success is based around the relationships we have with these lenders.
- We only charge £99 application fee – no completion fees!
- Happy to take on the advice aspect & talk to your client. (we’ll pay you 50% of the standard broker proc fee)
Please give us a call – 02380 456999 Option 3