Having a home-selling nightmare, a bridging loan may be the answer

Added by Love Business East Midlands | 19 June 2014

UPDATED: 19 June 2014

Property bounce spreads across the country with prices tipped to rise 35% by 2020

 

It’s a common enough scenario, you’ve fallen in love with your ideal home, had your offer accepted, but there’s just one snag…

You can't get sell your old house quickly enough! With house prices on the rise, the deal is at now at risk of falling through. This is where a bridging loan may be the only way to keep your dream house purchase on track.

 

Annual house price inflation is at 8.7 per cent and 9.5 per cent according to the latest major reports from Halifax and Nationwide. The Royal Institution of Chartered Surveyors said the increase is because buyers are chasing a shortage in the supply of homes for sale, which is driving prices up.

 

Has there been a better time to use a bridging loan to secure your dream property?

The Office of National Statistics figures showed property values rose 9.1 per cent in February compared to a year earlier - the highest annual increase in property values since June 2010. Once the London and South East property markets were stripped out of the data, average house prices nationally rose by a still substantial 5.8 per cent annually. That rate of inflation is four times as fast as wages are rising, with the most recent ONS figures putting annual pay increases at 1.4 per cent.

 

The RICS' report suggests that many middle-income families will soon be frozen out of a frenzied property market.

'It is going to be ever harder for many first-time buyers to conceive of ever owning their own home,’ said the institution’s chief economist Simon Rubinsohn.

'It is a major concern that we are not seeing enough houses coming on to the market. For the market to operate effectively, we desperately need more homes in areas where people want to buy and want to live. Until this happens, we're likely to see prices continue to increase.'

 

A bridging loan can be verbally approved the same day – with no hassle

With house prices set to continue to rise, a bridging loan may be the right answer for you to secure your dream property and keep on a rising property ladder.

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