Bridging can resolve the stamp duty land tax (SDTL) holiday rush, according to Clever Lending.
Bridging can resolve the stamp duty land tax (SDTL) holiday rush, according to Clever Lending.
Clever Lending is encouraging brokers to consider regulated bridging loans, as a solution for delayed property purchases, if a chain has broken or completion is looking unlikely to be achieved before the deadline.
Paul Day, director of business development at Clever Lending, said: “The property market has been extremely buoyant over the past six months, with people taking advantage of the government’s SDLT break.
“Although we do not know if this will be extended, there are reports that there are up 50% more homes in the sales process than there were this time last year, we are also getting messages from lenders and particularly solicitors saying they’re very busy and getting booked-up as the deadline looms.”
The specialist lending distributor believes regulated bridges are a short-term solution to make sure delayed transactions are complete, and new purchases can be made in time for stamp duty holiday conclusion.
Day added: “A bridge could come in here and save the day, by providing quicker short-term finance to secure new properties now and save the SDLT. A bridge could even help the property chain move and achieve the deadline, with the exit being a traditional mortgage.”
