Bridging buy-to-let surge

There has been a substantial increase in buy-to-let activity as investors look to beat the April stamp duty increase deadline.

Bridging loan completions nationwide in this area of business have increase since Christmas by 42%. We here Fastest Bridging can confirm this trend is correct as we are showing an increase of 61%, plus we are striving to complete on several more deals before the deadline.

Buy-to-let activity in general has increased by 25% on a monthly basis since December. The 3% increase in stamp duty is set to take effect from 1^st April as part of the Government’s attempt to curb the buy-to-let market. The idea behind the scheme is to free up more properties for the first-time buyer, it remains to be seen if this action will have the desired effect.

This type of business is when bridging “comes into its own”, a new mortgage application now will be far too late to complete on time. With a bridging loan there is still plenty of time as long as the case is “clean” with no hidden problems. A bridging loan can also help secure the deal at a far better price as the buyer is able to complete very quickly which is always attractive to the seller.

Benefits of Bridging for a buy-to-let

The benefits are numerous but the most popular ones are, speed of completing a deal which is normally no more than 10 days. The flexibility this type of loan offers is a major factor of use as well, for example the buyer has time to select the right mortgage deal to suit the long term needs. Costs of a bridging loan have reduced significantly over the last few years and no longer present major problems with the borrower.

Can we assist?

If you require assistance or want to know how a bridging loan could help you please do contact one of our fully experienced advisers.