Why Bridging Finance is the Ultimate Fast-Access Finance for Investors

Why Bridging Finance is the Ultimate Fast-Access Finance for Investors

Contrary to most educated expectations, the conclusion of the Stamp Duty has not affected the appetites of homebuyers or investors. The UK’s real estate’s sector has so far maintained its remarkable momentum, due to the sheer lack of affordable inventory and ferocious competition among interested buyers.

Specifically, the buy-to-let sector has seen a rapid rise in interest among new and established investors alike. Among whom, the ability of bridging finance is also growing at a record pace.

UK Property Finance

When Time is a Factor

Competition among investors is so ferocious that by the time an attractive BTL property has been found, it may already be on everyone else’s radar. Waste any time weighing up whether or not to take the plunge and somebody else will undoubtedly beat you to the punch.

Even if you decide within minutes that the property on sale is for you, accessing the funds needed to buy it means enduring the usual delays. With most conventional property loans taking weeks or even months to process and complete, being beaten to the punch is the most likely outcome.

This is why bridging finance has become the tool of choice for so many BTL investors across the UK. A far cry from typical BTL loans, bridging loans provide fast-access to investment capital within a matter of days.

Under the Hammer

Bridging loans can be particularly useful for buying properties at auction, which are often sold for significantly less than their true market value. Perhaps due to the condition of the property or the fact that it is considered ‘non-standard’ for any given reason, selling it via conventional channels may not be an option.

This provides the BTL investor with the opportunity to snap up homes and business properties at bargain prices in order to be renovated, improved and let out.

Irrespective of intentions and condition/classification of the property in question, bridging finance is a flexible, accessible and fast funding solution. Where time is a factor and immediate payment is required, bridging finance could be the answer.

Short-Term Secured Borrowing

Bridging finance differs from most comparable BTL property loans in that the facility is strictly short-term in nature. Interest is charged on a monthly basis – often less than 0.5% per month – and the facility is repaid in full a few months down the line.

Typically, bridging loans secured against qualifying assets can be issued to applicants with imperfect credit or no formal proof of income, a huge point of appeal for BTL investors who in some instances may be affected by both.

Taking advantage of the UK’s explosive real state sector means acting fast; there is no faster facility for purchasing a property than a competitive bridging loan.