Great savings!!!!
Bridging finance has many uses but still the most popular is property purchases, this week we have seen a great success story. One of our regular clients contacted us as he needed to secure funds urgently to purchase a property he had found. Our client is a landlord and has several properties in the South East, he has used bridging in the past but this was special.
Our client viewed a suitable property for conversion to 3 self-contained flats with an asking price of £525,000. After making an offer to the agent and being acceptable to all parties we went to work with one of our parent companies securing a suitable mortgage.
We were then contacted to ask if we could secure alternative funding within 7 days as the seller had made an offer of a £25,000 reduction if we could complete within this timescale. Fastest Bridging went to work immediately, we are happy to report funds were secured and the £25,000 saving was duly made.
Our client said “this was a strange situation after the agent contacted me to see if I could raise funds quickly”. “It was a very good offer and one I wanted to take up, I was pleasantly surprised our easy it was to do”. “So all in all with the associated costs attached to the bridging loan it was a very good deal indeed”. “Many thanks to Fastest Bridging for delivering on time again”.
As we all know property prices are rising daily and many investors see the necessity to act quickly to secure the deal. This is of course were bridging finance comes into its own and with the costs being reduced over the last few years you may wish to give this type of funding serious consideration.
Looking to find out more?
Here at Fastest Bridging we pride ourselves on the service we provide so if you require any help or guidance do call us. One of our expert advisers will be on hand to deal with your request.
Commercial bridging confidence grows
Bridging finance has to be the success story of 2015 with figures just growing and growing month on month. Commercial financing grew in July which follows the trend for recent months. Typical loan sizes increased as well, the average loan size for this year now stands at £750,000 per commercial case.
The economy continues to improve after the latest election, companies are expanding on a rapid basis and this is why bridging is so popular. Borrowers are becoming more confident in short term funding as they see the lenders ability to meet their demands and deadlines. On the other side lenders have become far more comfortable lending to companies due to sound repayment facilities in place. The increase in larger funding amounts is the real driving force behind this sectors annual growth and shows further evidence of the borrowers confidence in bridging finance.
Loan to values have hovered around 50% in the previous months of the year but now have reduced slightly to 48% but this still is an increase on the figures of 2014. So while loan sizes have increased this is not the case for loan to value ratios. This really is great news as it means borrowers are maintaining a larger stake of their own capital they have invested, thus giving the lender greater confidence.
Time to act quickly
Bridging loans are growing in stature day by day and have a vast array of uses.
Recent house price figures are showing a continued increase in property values which is great news for homeowners. There is a lot of talk within the industry that mortgage interest rates are about to increase and experts are showing concerns homeowners are not ready for this jump.
So is it time to get on the property ladder now as property continues to increase in value. You may be a landlord looking to extend your property portfolio. The good news is there are still plenty of advantageous fixed rate mortgages available but this could change very quickly. If you fall into these categories you may wish to consider using a bridging loan to enable you to act quickly.
A bridging loan could help you negotiate a better deal as you will be in the “driving seat” knowing you have the cash funds available to you in days rather than weeks. It is not always best advice to use bridging and you should always discuss your needs with a qualified adviser.
Bridging loan trends
The trend this financial year has seen this form of funding completing faster than ever before as competition heats up in the market place. This is of course great news for the borrower and the seller alike.
Years ago bridging finance was seen as a very expensive form of funding but now we are happy to report things are changing and the costs are reducing to meet demands.
Like too know more?
Our advisers are fully trained and skilled in all areas of bridging finance so please do call us to discuss any requirements you may have.