Despite mortgage rates staying low, many are finding themselves in a race to complete on a house or risk losing it, leaving a regulated bridging contract as one way to secure their dream house.
Master broker Clever Lending has reporteda significant rise in regulated bridging finance in terms of both applications and completions in the second half of 2016, which is continuing into 2017.
It said the reasons for the increase are several, and all concern the problems faced with the house buying process, supply shortages and rising house prices. Despite mortgage rates staying low, many are finding themselves in a race to complete on a house or risk losing it, leaving a regulated bridging contract as one way to secure their dream house.
Sam Kirtikar (pictured), managing director at Clever Lending, said: “A regulated bridge can help many different types of customer as, in this market, the speed at which they can complete is crucial to buying the house they have set their hearts on. Buying at auction, self-build, downsizing, or buying their dream home, they can all be made quicker and easier with a regulated bridge and these loan purposes have helped boost activity.
“Bridging rates are low at the moment with high LTVs also being offered by many lenders and so this form of finance isn’t as expensive as it was a few years ago, opening up new opportunities for brokers to offer a different route to funding the initial property purchase.”
