With so much volatility in the mainstream mortgage market, combined with a shortage of stock for sale, bridging finance has grown in popularity as a way of achieving funding quickly. The latest findings from MT Finance’s Bridging Trends survey shows that annual demand for bridging rose to its highest figure since 2019, with £716.2 million of bridging loans transacted last year.
While bridging has often been viewed as relatively expensive as you pay for convenience and flexibility, rates have been falling, helping boost its appeal. Bridging Trends found that the average annual interest rate fell to its lowest level in 2022 of 0.73 per cent, down from 0.79 per cent in 2020.
With lending decisions made within hours of an initial enquiry and funds released in a matter of days, depending on the lender, bridging puts purchasers in a similar position to a cash buyer, enabling them to move quickly. For this reason, it is often used by those buying at auction.
Bridging is also often used by those purchasing a residential property who have not yet sold their existing home – perhaps they have a buyer lined up but it is taking a while to get the deal agreed or they have yet to find a purchaser. It ensures the borrower does not miss out on the property they wish to buy, with the bridging loan repaid once they sell their existing home.
When it comes to bridging finance, it is important to seek specialist advice from a broker such as AWS Private Finance. We have excellent relationships with specialist bridging lenders so can get the right funding for your circumstances, while ensuring you don’t pay more than you need to. Please get in touch for more information.
