Bridging finance offers UK investors fast access to the capital needed to complete on lucrative investment opportunities. For example, businesses can use short-term bridging loans to raise capital for time sensitive opportunities, while individual investors can use specialist finance to complete on a residential or commercial property acquisition.
The growth of the country’s bridging sector over recent years has been remarkable. In fact, in 2011 annual bridging completions were worth a little under £500 million, but by the start of 2018 the size of the bridging market was estimated to be in excess of £4 billion. Despite this impressive growth, many people still have questions about this form of short-term finance, how it works and what advantages it presents.
With more than a decade’s experience in this sector, Market Financial Solutions (MFS) is well placed to shed some light on these questions. MFS works closely with a network of private clients and brokers to provide bridging loans that are uniquely tailored to their individual needs. Regardless of how complicated a case may seem, MFS’ team of experienced underwriters handle each inquiry on a case-by-case basis to deliver a personalised and tailored service.
One of the benefits bridging loans have over traditional forms of finance is the speed and flexibility they offer for those in need of fast access to capital. This has made specialist finance products particularly popular in the property market. With demand for property outpacing supply, the UK’s real estate market is extremely competitive. As a result, delays in acquiring a loan can lead to buyers and sellers witnessing a property deal collapse.
A survey commissioned by MFS found that of those people who had encountered a house sale falling through in the last decade, 33% had encountered delays in getting their mortgage delivered by a bank. Furthermore, 16% of buyers said that their property purchase fell through because, despite having a mortgage in principle, the lender later rescinded the agreement.
For buyers who have not yet completed on the sale of their own home but fear missing out on a prospective real estate purchase, they can use their existing home as a security and apply for a bridging loan against this asset, in turn enabling them to quickly buy the property they are after. The bridging loan can then be paid back once the home offered as security has been sold. In these instances, the buyer does not risk losing out on their desired property due to the delays they are encountering from selling their home and they can therefore act confidently and quickly.
MFS supports residential property investment, and this is why we are currently offering free valuations on all residential bridging loans. To find out more about industry-defining services, be sure to download our product guide.