The bridging industry has now emerged from the shadows as a genuine player in the market and it has carved out a space that makes it a vital tool for homeowners, commercial landlords, investors and developers alike.
In spite of all of this growth and recent press there is still a slight stigma around this form of lending. However as countless testimonials will tell you bridging finance can open doors that traditional lending simply cannot do, especially in a market with borrowing caps, tougher regulations, so-called ‘undesirable’ properties, and an ever more conservative stance from the high street banks.
At Capricorn we offer professional financial advice as bridging finance is not suitable for everyone. We are a prominent London broker for both conventional mortgages and bridging finance and are seeing more and more of our clients looking to access the equity in their homes before they have even managed to sell. With cash rich competition from overseas buyers and a domestic market that is also extremely competitive, it is imperative for buyers to be able to move quickly, something that is sometimes simply not possible without bridging finance.
This can also be extended for purchases that need to be quickly concluded and the onus to do this is with the prospective purchaser, this is most apparent with auction purchases where there is always a fixed deadline. Bridging loans are – by design – extremely flexible and are tailored to the buyers requirements.
There have been questions raised on whether the recent growth in the bridging market will subside once more conventional credit lines are properly re-opened, but the reality is that the market is finding its feet and will continue to evolve. There is always going to be a need for a solution where the residential and buy-to-let markets cannot meet and thus the need to ‘bridge that gap’ will always be there. As people start to look past the interest rates on offer and consider the actual practical applications of this fantastically flexible type of finance I believe it will go from strength to strength, this in turn will hopefully fuel more options for fledgling property developers and frustrated homeowners alike.
Some bridging loans are not regulated by the Financial Conduct Authority.Your home may be repossessed if you do not keep up repayments on a mortgage or any other debt secured on it.