Due to a heady mix of pent-up demand and changes to the stamp duty threshold, we are in the midst of a property mini-boom.
This is a positive thing for many people but it’s also prudent to point out that this is happening whilst surveyors, conveyancers and lenders were, and in some respects still are, getting to grips with new working conditions and backlogs across a variety of transactions.
This issue was nicely summed up in a recent article in home section of the Sunday Times – ‘Property exchanges taking a month longer due to buying process backlog’ and these delays are only likely to be further extended as increased amounts business floods through the door.
This may not seem like a huge issue with the stamp duty deadline still six months away but we all know how easy it is for chains to break, mortgage offers to be pulled and people’s circumstances to change.
Therefore, it’s inevitable that many residential and investment purchases will go right down to the wire, despite all good intentions.
Which means that some borrowers will need additional support and access to alternative forms of finance to secure properties in a cost-effective and timely manner.
Bridging lenders are experts in processing applications under extreme time constraints and this type of finance will help more traditional homebuyers than ever to ensure that chains are not broken, completions can take place within their sellers time schedule and that robust plans are in place to exit this type of financial arrangement as soon as possible after the property has been secured.
A vital point to remember is that bridging loans will not suit everyone. However, they can often provide a viable alternative for those looking to secure short-term funds quickly.
Dale Jannels is managing director of Impact Specialist Finance
