Bridging Finance for buy-to-lets on the up
The last twelve months has seen a huge increase in the use of bridging finance for investors in the buy-to-let market. The interest in this area keeps on increasing month on month as the buy-to-let market continues to strengthen. Here at Fastest Bridging our advisers are reporting high volumes of enquiries for rapid financing as landlords look to complete deals as quickly as possible. It is seen by potential investors as a way of securing good keen discounts on purchases as sellers like a sale to be completed within a short time frame.
We only advise the use of bridging finance when traditional methods fail, however clients are expressing a wish to complete as quickly as possible due to a shrinking market. There is no doubt the number of suitable rental properties for sale is reducing daily thus investors want speed so they do not miss out on the property they have targeted.
Multiple landlords increasing their portfolios are using bridging finance more and more as well, they see it as a way to secure properties at discounted prices. Also they see it as a “stop gap” buying them time to negotiate a far better mortgage deal once the property has been secured.
The best use of bridging finance
-Transactions on tight deadlines
-Purchase at auction
-Speed is the priority
-Undervalued property
Bridging finance isn’t the cheapest but costs are reducing as demand increases, and if it secures you an advantageous deal it can be very cost effective in the long run.
What to do next?
If you are new or an existing bridging client and would like to know more please do call one of our expert advisers. We at Fastest Bridging pride ourselves on delivering what the client needs.
Getting more and more attractive
There has been a flurry of activity in the bridging loan sector recently as lenders in both the regulated and non-regulated look to re-price their products downwards. We are pleased to let you know bridging loans are at their lowest rates this sector has ever seen. Great news for borrowers indeed, this is without doubt one of the contributing factors to bridging’s rapid growth over the last 2 years. This type of loan has been getting less expensive as competition for business intensifies plus new funding sources are increasing as well.
Lenders are now looking for ways to attract more business, we are now seeing them offering assistance towards the survey fee as an example. This type of activity has in the past always been reserved for the conventional mortgage market but not any longer it would seem. So before you decide which lender to use in the future do check out what deals are on offer from an alternative bridging loan provider.
Speed is important
We are always asked with virtually every case we do “how quickly can this be done”. The answer is every case will vary due to the complexity of the deal. The average time currently to complete on a “clean case” is 9 business working days. This of course could be significantly less in some cases especially if it is just a straight forward purchase. We at Fastest Bridging always ask our client to follow these golden rules to help us to help them.
1, Good fast communication
2, Skype contact details
3, Return applications rapidly
4, Easy access to the property for the survey
5, Internet access & scanner
Need some advice
If you require assistance with your next bridging loan please do call one of our expert advisers who will be happy to help.
Applications increasing
September this year has seen record applications for bridging finance and we can tell you now October was even better. Many investors are turning to this form of loan due to the speed and efficiency it offers. Speaking to one of our regular buy-to-let clients he said “I have been using bridging now for over two years and the discounts I have achieved on the purchases are truly remarkable”. “One of the things apart from the speed to complete the deal I like is it gives me breathing space”. “Once the property has been purchased with the bridging loan I can then relax and get the correct buy-to-let mortgage in place at my pace”.
One very happy client indeed and we are pleased to say we have plenty more just the same as that. Bridging costs may look at first glance expensive, but over the long term with the discounts that can be achieved on the purchase price you will be surprised. We are always getting asked what bridging finance can be used for and the answer basically is anything which makes sound financial sense.
Some regular bridging uses
Tax Liability
Bridging is popular when a tax demand is received and the amount required cannot be raised in the given timescale. A bridging loan can be put in place and secured against the business premises or an alternative property.
Inheritance tax
This is not so common these days but can arise when a client is left a sizable estate and includes freehold property. Rather than sell the property to pay the tax a bridging loan can be secured against the freehold until a financial solution can be reached.
Site acquisition planning or development
This form of funding is one of the most popular with our company as funds can be made available within just 72 hours. Makes the deal a lot quicker and efficient and buys the purchase valuable time to place correct long term funding.
Need some help?
If you need assistance with your next loan please do call to discuss your requirements we are always happy to help.