The property market is booming. Lending is up, which means that demand for finance is growing, too. Not only that but there’s currently huge demand for property combined with a limited supply.
But what does this mean for those looking to move? Quite simply, you need to be quick if you’re going to buy your dream home.
Either that or you need to have access to enough finance to put you in a strong enough position to compete with those who are looking to buy the same property and who may have already sold theirs.
So, what do you do when you have a very short window to buy and haven’t yet sold your property? Or you’re looking to buy a property at auction and need access to auction finance? Equally, if you’re a property developer looking to finance your next project what is the solution?
The answer, it seems, is bridging finance. Not just from the surge of enquiries we’ve received over the last few months but the Association of Short Term Lenders has also reported a 39% increase in demand for short-term finance.
In April we welcomed in the Mortgage Market Review from the Financial Conduct Authority, which essentially stipulates that lenders have to conduct more checks before issuing a loan. The knock on effect has been that mortgage application wait times are up and the chances of securing a mortgage in time to buy your next property before it’s too late have been reduced even further.
As a Guildford mortgage broker with access to an array of specialist finance products we are able to shortcut the traditional route to arranging a mortgage. We’re also an independent mortgage brokerage and full members of the National Association of Commercial Finance Brokers, which means that we have access to exclusive rates that other lenders and brokers do not.
There is talk of interest rates rising at the beginning of next year and whilst this cannot be guaranteed, it is a likely scenario. In this case, the benefit of a short-term bridging loan taken out now would mean that you would know the interest payable from the moment the finance is made available to the point the loan stops*.
Are you looking to become a landlord and need finance for buy-to-let properties? Do you need to fund a new business project such as a B&B or even a hotel? Or are you planning on opening a new factory?
Regardless of your needs we think that we can help. And, with escalating property prices, increasing demand for property and growing consumer confidence as a result of property once again representing a good investment, my prediction is that short term lending is going to increase even further over the coming months.
If you’re considering taking out a bridging loan our advice, given how everyone’s needs are different, would be for you to contact us on 01483 238280 or email firstname.lastname@example.org to find out how we can help you bridge that gap and get you to where you need to be.
For more information on bridging loans click here.
*Based on interest rates rising in January 2015 and a loan being taken out for the period ending January 2015.
By Mark Finnegan, Director, Complete Mortgages