New EICR to cover any changes made by outgoing tenant?10:00 AM, 4th May 2021
About A week ago 93
There has been a significant shift towards bridging finance, especially in the residential property market. The high street banks are curbing their lending making it more difficult to apply for finance, but with demand for borrowing on the increase, bridging finance lenders have moved into the market to fill the gap.
Falling interest rates have also contributed to the rapid growth of the bridging industry. Bridging loan rates have fallen since the start of 2009 in line with market trends, and this has encouraged more investors to use bridging finance to fund their projects. The trend of declining rates continued in Q1 2012, with the average rate falling from 1.41% per month in Q4 2011 to 1.38%. The average rate also fell year-on-year – it was 1.52% in Q1 2011. We currently have bridging lenders on our panel that will offer rates as low as 0.7% per month.
There is now a good choice of lenders offering a wide range of facilities to suit most requirements. Bridging products are generally considered more expensive than traditional sources of funding, but the costs set against the gains to be made in speed and flexibility often make Bridging solutions more efficient.
The ability of bridging lenders to provide quick decisions, sometimes almost instantaneously, and their ability to offer and complete within a matter of days, makes for the ideal solution where you have to move quickly to get the property at the price you want.
Here are some of the headlines that hit the financial press within the last week.
As new entrants come into the market on what seems like a weekly basis, it is important to understand the following points that should be considered when investigating Bridging finance:
The next article will look at the wide variety of uses for bridging finance and the advantages it holds over other types of funding available.
If you would like some assistance yourself or just have a chat about a potential project, please click on the appropriate link below or call us on 01603 489118.
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