As property market hots up Bridging Loans provide key to fast sales

Added by Love Business East Midlands | 8 June 2014

UPDATED: 19 June 2014

Redrock Commercial Finance have noticed a rise in bridging loans and believe it's because high street and private banks are taking too long to process loan applications.

 

Property developers and home owners using bridging loans to secure property as prices rise

With property developers and home owners alike wanting to take advantage in the rise in house prices, a bridging loan provides a quick way to secure the short term funds. With house prices on the turn, the bridging loan provides developers with access to the funds and the possibility of a quick turnaround. Meaning they can take advantage of the rising market and quickly turn a profit.

 

People are being tempted back into purchasing property as prices rise

To avoid losing the property, many purchasers are acting quickly to secure the sale and using a bridging loan. This provides the time to get the right longer term finance arrangement in place whilst means they can secure their desired property because they can move quickly.

 

“It doesn’t matter whether you are a home owner or developer, if you want to get the property in the current climate, you need to act fast. With decisions on bridging loans typically given the same day and funds with five to seven days, it means the purchase can be secured.”

Gary Poulton, Partner at Redrock Commercial Finance, goes on to say…

“As house prices rise, extending the time to secure means vendors are often tempted by increased offers. Bridging loans help to kerb this because funds are available in days and the property can be secured.

 

As well as helping home-movers when there is a gap between the sale and completion dates in a chain, a bridging loan can also help someone planning to sell-on quickly after renovating a home, or help someone buying at auction.”

 

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