Greenfield Mortgages urges greater awareness of how bridging finance could help customers affected by property chains.
The lender said the number of home movers affected by slow-moving or collapsing property chains could be significantly reduced if more of them were aware of how bridging finance could help.
Recent data shows that the number of house sales falling through hit more than 90,000 in the third quarter of 2022, and Greenfield Mortgages said that it’s vital more customers are aware of alternative options.
The Birmingham-based lender wants to raise awareness of how a bridging loan could enable people to purchase a target property without having to depend on the rest of a chain completing first.
Richard Keen, Greenfield Mortgages’ national account manager, said: “The UK housing market is going through a turbulent period at the moment, with increasing bank rates, soaring inflation and rising property prices all contributing to a sharp rise in the number of house sales falling through.
“What many people may still be unaware of is that a bridging loan, secured on an owner-occupied property or one soon to become owners-occupied, could enable them to get their hands on their new home very quickly. It allows them to stand outside of a chain and can even be used if a potential buyer of their current property has withdrawn or if the chain has completely collapsed.”
Keen added that bridging finance provides an affordable and flexible alternative to other forms of finance, and could be used in a wide range of different scenarios.
“I think there’s a lingering misconception out there that bridging finance is expensive or that it’s too complicated, but that couldn’t be further from the truth. With the bank base rate at its highest level in nearly 15 years and with many lenders lowering their LTVs, a bridging loan is a viable option with rates from 0.49% per month they’re very affordable if used correctly.
“Bridging finance can usually be arranged quickly. Here at Greenfield Mortgages, customers receive a credit-backed decision within two hours, and we complete on the majority of deals within 10-14 days, with some deals completing as quickly as five days.
“Another key benefit is that a bridging loan could also be suitable for auction purchases, downsizing, property renovations and the expansion of portfolios.”
