Could a Bridging Loan help you?
This type of loan could be very useful if you need to borrow money on a short term basis.
A bridging loan is normally used to fund a house purchase while you are waiting for the sale of your existing property. Also you may be buying a property at an auction and you need to put a deposit down when the deal is done.
Arranging this type of loan is normally very quick between 7 to 10 days is average.
Types of Bridging Loans
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 this could be equity in a property sale or taking out a mortgage.
Getting advice
It is always recommended to contact us directly to discuss your loan requirements. It may well be you will not need a bridging loan as a re-mortgage or mortgage will meet your needs.
The return to the market of bridging companies with an appetite to lend can easily be demonstrated by the marked increase in gross lending when measured year on year. From May 2013 to May 2014 the total gross amount of funding supplied by bridging companies totalled £2.05bn. When compared to the 12 months prior to this you discover an increase of over 17% in total lending.
The years of reluctance to lend have long gone with most lenders coming to the market place with adequate capital in place and a positive attitude to lending. Most funding is being provided to experienced borrowers and developers looking to convert or refurbish existing property, whilst the demand for funding for ground up development is only just starting to show the early signs of recovery.
Incentives put in place by the government to try and stimulate the market have had limited success as they are more restrictive in design, it seems that the flexibility of traditional bridging finance is proving much more attractive to property developers and landlords.
Although prices rose by 0.5%, losses over the preceeding period caused flat pricing overall.
Mortgage lenders report that UK house prices rose by 0.5% in January but that this was unchanged year on year, comapred to the same time in 2012. This is due to the fact that most regions saw price falls during 2012 and as 11 out of 13 UK regions saw annual price falls over the period.
Northern Ireland continued to see largest price falls and in addition, in England, the North/South divide in property prices was wider.
The typical UK home is now worth a tad over £162,000.
London best performing region in 2012, perhaps due, in part at least, to the influence of wealthy Russian and other overseas buyers.