UK Summer and Bridging Loans
The UK summer may not always offer ideal weather but brings promise and opportunity. While many enjoy holidays, the financial sector continues its work. At Connect Mortgages, we focus on helping clients navigate bridging finance complexities. Even during quieter months, our service remains swift and efficient. We aim to provide top-notch support for all your financial needs.
Understanding Bridging Finance
Bridging finance is a short-term loan bridging the gap between selling one property and buying another. A recent survey by Interpath and the Bridging & Development Lenders Association (BDLA) shows that this market is expected to grow. However, the time to complete these loans is increasing due to lengthy legal processes.
The survey also reveals that 62% of brokers and lenders expect a rise in loan origination volumes. Moreover, 92% believe institutional funding for these loans will remain stable or grow. Despite the growth, 51% of respondents noted longer loan completion times. Therefore, choosing the right partner is crucial for effectively navigating these challenges.
The Appeal of Bridging Finance
Bridging finance is gaining popularity because of its flexibility compared to traditional buy-to-let (BTL) mortgages. It offers adaptable terms that are useful for investors reconfiguring their portfolios. With property prices rising, some investors consider selling less profitable properties. Bridging loans allow these sales without incurring heavy exit fees associated with BTL mortgages.
The survey indicates that property refurbishment is the most common reason for taking out a bridging loan. This is followed by downsizing and other uses. Interestingly, 57% of these loans have nine to twelve months terms, reflecting their short-term nature. Loan-to-value (LTV) ratios typically range from 65% to 70%, with average loan sizes exceeding £600k.
Meeting Market Needs
At Connect Mortgages, we prioritise flexibility in today’s dynamic financial market. Our bridging finance solutions cater to diverse needs, whether refurbishing a property or downsizing. Our team ensures a smooth process, minimising delays and achieving your goals efficiently.
Open for Advice
Take Action Now
If you’re considering bridging finance, now is the perfect time to act. At Connect Mortgages, we offer expert advice and tailored solutions for your financial needs. Don’t let market complexities slow you down. Contact us today to discover how we can assist with your property investments. Our expert brokers are ready to help you achieve your financial goals. Let’s make your property dreams a reality together!
