Building bridges with specialist finance, a guide to Bridging loans
In many ways bridging finance has always been seen as the domain of property developers and investors ‐ a high risk and high cost option that is more often than not seen as the 'last resort' when compared to more standard and longer‐term lending options. We asked Craig Taylor, who is Head of Specialist Lending at One77 Mortgages*, the facts about Bridging Finance.
However, as each year passes and the property market becomes more and more competitive the bridging and specialist lending market in the UK is continuing to grow and becoming more and more a useful tool for those looking at more conventional property "sale and purchase".
The latest figures published by the Association of Short Term Lenders has shown than bridging finance applications accounted for just under £6 billion in the first three months of 2019 ‐ a rise of 13.6% over the previous quarter and 6.9% over the same period for 2018. These figures therefore show that the need, and continuing demand for bridging and specialist products shows no sign of slowing any time soon. However, to ensure the trend continues to grow it is crucial that brokers are aware of the gaps that may exist in the market.
In the consumer marketplace bridging loans have historically been used to ensure that a property chain completes where there has been an unexpected break. However, the range of uses for bridging finance can, and do, extend much further than this alone. Refinancing complex buy‐to‐lets, settlement of a tax bill, home improvements and raising capital as a business are just some of the many additional uses of short‐term lending that borrowers are beginning to utilise.
As the breadth of lending scenarios increase and become more common it is becoming more crucial that brokerages are in a position whereby they can firstly identify these opportunities and therefore the ultitude of specialist solutions they have access to. Ensuring that the advice given is from a knowledgeable and skilled broker in this area is just as pertinent. At One 77 we have ensured that we are in a position to undertake by launching our own Specialist Lending department in 2018, who have access to an extensive and bespoke lending panel who are able to offer specialist lending solutions for the above situations amongst many others.
Generally, however complex the individual scenario may seem on the surface, with a diverse enough lending panel to tap into on top of the more conventional longer‐term lending solutions available to us, we can cater to a much wider variety of property finance customers than many.
With the ongoing political and economic uncertainty in the UK at the time of writing bridging and specialist lending solutions are becoming more useful day‐by‐day and ensuring that you have access to a knowledgeable, skilled and fully equipped specialist broker could prove to be invaluable.
If you’re in a similar situation and require advice on a property finance case, the Specialist Lending Team at One77 will be happy to take you through the options available.
Authored by: Craig Taylor – Head of Specialist Lending, One77 Mortgages*
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