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Bridging loans set to increase as property market hots up

Bridging loans set to increase as property market hots up

House prices rose by 0.6% in February 2014, a 9.4% increase on the same month in 2013, according to the Nationwide Building Society.

The increasingly onerous criteria from mainstream lenders on regulated residential mortgages is thought to be effecting consumers trying to get a mortgage. The result is  and some borrowers are turning to bridging finance companies for help.

Recent figures show that 18% of people taking out bridging loans are owner-occupiers an increasing trend with overall volumes in the Bridging loan market up 51% over the last year.

Invaluable in the Right Circumstance

As such, bridging loans can prove to be invaluable in facilitating a property purchase that otherwise would not be possible. As with all short term financial stop-gap measures, the downside of many bridging loans is that they are generally far more expensive than a ‘normal’ loan. However, with house prices set to rise the cost of missing out could be more.

The main facts you need to know about bridging loans are:

  1. Instant Loans: They have been created specifically to fill in a gap and are therefore available very quickly.
  2. Large Sums Available: The primary use of bridging loans is to facilitate a property transaction and therefore the sums available are often £25k +
  3. Cheaper Option: Bridging loans tend to have lower set up costs and higher monthly rates of interest to help speed up the process.
  4. Flexible Borrowing: Bridging lenders are often more lenient than High Street lenders in regards to the credit history and proof of income they require from a borrower.
  5. You will get an answer on the phone within minutes: Redrock Commercial Finance specialise in providing fast track bridging loans, which means they can typically give you an indication on the likelihood of your application in a few minutes.
Advantages of ‘bridging loan’ finance from Redrock Commercial
  • Fast access to funds because loans can be completed in days
  • Hassle Free because there is no time-consuming bureaucracy like you get with banks
  • Highly competitive rates because it's not supporting a larger banking infrastructure
Call 0845 6181901 for a free consultation to explore the opportunities available to you.

Redrock Commercial Finance – Specialists in fast track bridging and commercial bridging loans.


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