Demand growing for bridging finance
The demand for short term loan products for property investors has increased greatly over the last few years and seems set to continue in 2015 and beyond.
Bridging loans are used by clients for chain breaks or releasing cash in property quickly. Also for buying property where there are known issues, such as title or planning problems.
Investors are looking for a fast solution to financing a property deal as this helps to reduce the price by being able to complete quickly. Being able to complete a purchase very quickly is always an attractive proposition for a seller and can assist in negotiating a better price.
Bridging finance is normally more expensive than the conventional route but investors are achieving huge discounts by being able to complete within days rather than months. So the extra costs involved are easily offset by the lower negotiated prices.
How long does it take?
The majority of loans can be completed within 10 days and on occasions even less, this will vary due to the complexity of the bridging loan required.
How can I find the best deal?
Bridging lenders have expanded their loans over the past 5-10 years as the financial crisis made banks and building societies far more selective in their mortgage lending.
We have a vast array of lenders specialising in all areas of bridging loans, we will source the best rate and deal to suit your needs so feel free to call us to discuss your requirements.
Self-employment and Bridging Finance
The latest figures from the Office for National Statistics show self-employment is at its highest point since records began 40 years ago, this means nearly 15% of UK workforce is now self-employed.
This ever increasing sector of the UK workforce is probably the most in need of specialist lenders. A large number of high-street lenders appear not to be interested in them at all as they see them as high risk. This also applies to not only the self-employed but pretty much any working person in non-standard employment. Regular lenders seem to class this category of the work force as “too difficult” thus the need for specialist lenders. Bridging lenders are well versed in specialist lending needs and offer the ideal solution for short term lending to the self-employed.
Interesting facts about who are self-employed
The number of over-65s who are self-employed has more than doubled in the past five years to reach nearly half a million
The number of women in self-employment is increasing at a faster rate than the number of men (although men still dominate self-employment)
The rise in total employment since 2008 is predominantly among the self-employed
Bridging Loans available to the self-employed
As lending to the self-employed is a specialist market it is recommended to contact us to get advice as to which loan suits your needs. As Bridging specialists we have access to various lenders who offer very competitive rates in all areas of Bridging finance. Please call to discuss your needs.
Bridging finance for commercial properties
This type of loan is on the increase as more and more people seek a quick solution to funding a commercial property purchase. The last 5 years has seen a rise in the time regular lenders and high street banks are taking to complete deals thus buyers are becoming frustrated.
Commercial bridging is a short term loan usually for 12 months or less, which can be used against the purchase of a commercial property. The loan is normally secured against the property you are buying but other options do exist.
Examples of commercial properties that qualify
- Shops with a flat above
- Restaurants
- Retirement homes
- Nursing homes
- Guest houses & Bed and breakfast
- Office buildings
- Buy to let properties
- Commercial industrial units
- Hotels
Types of Bridging Loans available
Closed
This is a loan which has a fixed repayment date, normally recommended if you have already exchanged contracts and you are waiting for a sale to complete.
Open
With this loan there is no fixed date of repayment the lender will usually expect repayment within one year but this does vary.
The lender will want to see a clear repayment structure in place.