It is often assumed that bridging finance is a facility restricted exclusively to existing homeowners; however, bridging loans can also be surprisingly flexible, accessible, and affordable options for first-time buyers.

Eligibility for bridging finance is assessed primarily on the borrower’s ability to provide acceptable security for the loan. If you have fixed assets, such as commercial property, residential property, or land, with a combined value that covers the costs of the loan, it is of no consequence whether you currently own a residential property.

When would a first-time buyer consider bridging finance?

Bridging loans differ from conventional mortgages in that they are designed to be repaid in full within a term of between 1 and 18 months. In addition, the funds can be made available within a matter of days, and after the first month, interest is charged on either a monthly or daily basis, typically less than 0.5% per month.

A bridging loan for a property purchase (when repaid promptly) can work out exponentially more cost-effectively than a long-term mortgage.

First-time buyers may consider bridging finance for several scenarios, including:

• To purchase a property at auction at a bargain price
• To buy a non-standard property that major lenders would refuse
• To purchase a ‘fixer-upper’ to subsequently sell at a profit
• To avoid the costs and binding obligations of a mortgage

Where a property is purchased by way of bridging finance, the loan can subsequently be repaid by taking out a conventional mortgage, raising the funds elsewhere, or selling.

How is first-time buyer bridging finance eligibility assessed?

For the most part, bridging finance specialists are primarily interested in the applicant’s ability to cover the costs of the loan with appropriate security. Most lenders exclusively accept residential and commercial properties and land as security.

A check on credit history may also be necessary, in accordance with the chosen lender.

Most important is proof of a viable exit strategy. This means providing the lender with a full disclosure of when and how you intend to repay the loan. For example, by selling the property you purchased and generating a profit,

How much can a first-time buyer borrow?

There are technically no limitations as to how much any applicant can borrow; it all depends on the value of the assets you offer to secure the loan. In most instances, however, bridging finance for property purchase transactions is available for up to 75/80% of the value of the property, depending on the individual circumstances of the applicant.

In all instances, it is advisable to consult with an independent broker at the earliest possible stage in order to ensure you get the best deal. Competitiveness varies enormously from one bridging loan specialist to the next, so it is important to conduct a thorough market search before deciding who to do business with.

For more information on any of the above or to discuss bridging loan applications in more detail, contact a member of the team at Bridgingloans.co.uk today.

When it comes to securing quick and flexible financing for property transactions, bridging loans emerge as a valuable tool in the financial toolkit of investors and homeowners. However, understanding the cost implications of such loans is crucial for making informed decisions. In this blog post, we explore the question, “How much does a typical bridging loan cost?”

Breaking down the costs

Interest rates
One of the primary costs associated with bridging loans is the interest rate. According to BridgingLoans.co.uk, interest rates for bridging loans are typically higher than those for traditional mortgages. Rates can vary and are influenced by factors such as the loan amount, loan-to-value (LTV) ratio, and the borrower’s credit profile. It’s essential for borrowers to carefully review and understand the interest rates offered by different lenders to determine the overall cost of the loan.

Arrangement fees
Bridging loans often come with arrangement fees, which are upfront charges for setting up the loan. These fees can vary between lenders, and BridgingLoans.co.uk advises borrowers to consider the arrangement fees along with other costs when assessing the overall affordability of the loan. Some lenders may also charge exit fees, payable when the loan is repaid.

Valuation fees
Property valuation is a crucial step in the bridging loan process. Lenders typically require a professional valuation to assess the property’s worth and determine the loan amount. While borrowers are responsible for covering this cost, the valuation is an essential part of the overall cost structure and should be factored into budget considerations.

Legal fees: Legal fees are another component of the cost of a bridging loan. Borrowers are generally responsible for their legal representation and may also need to cover the lender’s legal fees. Working with a solicitor experienced in property transactions is advisable to ensure a smooth and efficient process.

Exit strategy costs
A well-defined exit strategy is key to a successful bridging loan transaction. Borrowers need to consider the costs associated with their chosen exit strategy, whether it involves selling the property, refinancing with a traditional mortgage, or another method. Understanding these costs in advance can help borrowers plan for a seamless repayment process.

In conclusion

While bridging loans offer a valuable solution for those in need of short-term financing, it’s essential to grasp the full scope of associated costs. By considering interest rates, arrangement fees, valuation fees, legal fees, and exit strategy costs, borrowers can make informed decisions that align with their financial goals.

BridgingLoans.co.uk serves as a valuable resource for individuals seeking information on bridging loans. For personalised advice tailored to your specific circumstances, consulting with financial experts and leveraging the insights provided by BridgingLoans.co.uk can help you navigate the financial landscape and unlock the potential benefits of bridging finance.

It is far from uncommon to require third-party financial support to meet what can often be quite ludicrous inheritance tax (IHT) requirements. The issue is that, until this bill is settled, heirs and beneficiaries are essentially locked out of their owed assets.

Precisely where an inheritance loan can help, but how exactly does such a facility work, and where can they be accessed in the UK?

Inheritance loans: the basics

An inheritance loan is a bespoke financial product designed to help beneficiaries access some of their owed funds early while waiting for the distribution of inheritance via probate. The maximum loan amount issued is based on the value of the expected inheritance, which also acts as a form of security for the loan.

The lender will assess the value of the inheritance and request supporting documentation, such as a will or probate documents, before providing the loan. Maximum loan sizes are usually capped at 60% to 80% of the total combined value of the owed assets, while interest and borrowing costs are agreed upon in advance and fixed.

Inheritance loans are a popular and surprisingly accessible solution that lets you access what is rightfully yours without waiting for full settlement of the estate. Something that can sometimes drag on for months or even years.

Do banks do inheritance loans in the UK?

Several major banks in the UK provide inheritance loan facilities or advisory services, including Barclays, HSBC, Lloyds Bank, and Metro Bank. They all have distinct application processes, eligibility criteria, and probate loan packages designed to cater to different customer needs, some of which are offered in an advisory capacity only.

Barclays offers their help and support via their wealth planners, experienced advisers who guide beneficiaries through the process. HSBC offers bereavement support and inheritance tax advice (for account holders who meet certain financial requirements), while Lloyds Bank and Metro Bank also offer bespoke inheritance-related support for their customers.

However, it’s worth noting that while these major banks offer some form of support, it doesn’t necessarily translate to the best deals. Probate loans from major banks often come with high rates of interest and elevated borrowing costs. Moreover, the process of organising an inheritance loan with a major can be time-consuming and complex.

Finding a better deal

In most cases, a more beneficial option is to seek out specialist lenders via an independent broker. Experienced brokers combine extensive knowledge of the sector with strong relationships with specialist lenders, enabling them to access deals that are not available on the High Street.

By comparing the rates, fees, and terms from an extensive panel of lenders, they can help secure the best possible deal, ultimately saving you money and time.

Importantly, an independent broker can also provide you with the objective advice you need to make an informed and confident decision. Something that is of great importance when dealing with matters as significant as inheritance and probate.

How it works

Though all lenders impose their own application policies, the same basic principles apply in all instances.

Here’s a step-by-step look at how the probate advance application process works:

• Eligibility assessment: You contact a probate advance provider via a broker who assesses your eligibility based on the value of your inheritance.
• Paperwork and verification: If you qualify, the provider will then complete some paperwork and verify your inheritance details.
• Flexible funding: Once approved, you receive the funds. The amount can vary, but it’s typically about 60% to 80% of your expected inheritance.
• Repayment: The advance is repaid, plus fees, from your inheritance’s proceeds once the estate is settled.

The benefits of probate advance

Choosing a probate advance to deal with the complexities of probate can be beneficial in many ways:

• Fast access to funds: You won’t have to wait through the lengthy probate process to access a portion of your inheritance.
• No credit check: As the advance is secured against your share of the inheritance, your credit score is not a factor in approval.
• No monthly payments: You pay back the advance in full only when the estate is finally settled.
• Low risk: You know you are due a windfall in the near future, so there is little to no risk you will be unable to repay your debt.
• Predictable costs: All fees and charges are fixed in advance, so there are no surprise costs later on.

In summary

Irrespective of your preferred provider, a major bank or a specialist lender, it is essential to perform due diligence before applying. Understanding the terms and conditions of your inheritance loan is paramount to making an informed decision, which is again where the input of a skilled broker can prove invaluable.

For more information on inheritance loans or to arrange an obligation-free quotation, contact a member of the team at UK Property Finance today.

Broken property chains are the ultimate nightmare scenario; they are also an all-too-common reality. Research suggests that as many as 30% of all property sales in the UK fall through before completion.

But there is an accessible and flexible way to avoid chain breaks, in the form of bridging finance. For those able to qualify, bridging loans represent a convenient and cost-effective alternative to watching a potential property purchase fall through at the worst possible time.

Why do property chains break?

Property chains can collapse at any time for a broad range of reasons, which include:

• The seller decides they no longer want to sell their home.
• Buyers are pulling out of their planned purchase decision.
• Mortgage applicants are being denied funding by their lenders.
• Buyers are gazumped by a competing bidder with a higher offer.

Irrespective of the cause of a broken property chain, the consequences remain the same. When the sale of your current home suddenly falls through, you find yourself in a position where you can no longer afford to buy your next home.

At this point, you could be forced to watch your dream home slip through your fingers unless you take decisive action.

Bridging loans for chain-break finance

Increasingly, homeowners looking to opt out of perilously fragile property chains altogether are looking into the potential benefits of bridging loans. Bridging finance provides property owners with the opportunity to leverage the value they have tied up in their current home in order to buy their next home for cash.

The loan is then repaid when their previous property sells, effectively ‘bridging’ the gap between buying and selling.

Here is how the facility works in practice:

• A couple looking to relocate currently owns a home with a value of £500,000.
• They find a home they would like to buy in their dream location for £400,000.
• An application for a £400,000 bridging loan is submitted against their current home.
• The lender approves their application, and the funds are transferred within a few days.
• The couple moves into their new home, and their previous home remains on the market.
• A few weeks or months later, when their previous home sells, the loan is repaid in full.
• In the meantime, interest accrues at a rate as low as 0.5% per month.

Bridging finance effectively works like a short-term mortgage, wherein funds are raised against the value of the borrower’s home and repaid at a later date. What makes the difference with a bridging loan is that the facility can be arranged in a few working days, and the full loan balance is repaid within a few months.

How much can you borrow with chain break bridging finance?

The amount you can borrow will be determined by the equity you have built up in your current home, along with the maximum LTV your lender is willing to offer. Most lenders cap their maximum LTVs at around 80%.

This would mean that if you have £500,000 equity in your home, you would be able to borrow 80% of this, or £400,000. Your general financial circumstances may also be taken into account by your lender, which could influence the maximum loan size you qualify for.

Who is eligible for chain break bridging finance?

As a specialist type of secured loan, eligibility for chain-break bridging finance is determined largely on the basis of available security. If you have established sufficient equity in your current home (or have other assets of value you could use as security), you have a high chance of qualifying.

This applies even if you have imperfect credit or cannot provide comprehensive proof of income, as many specialist lenders are willing to work with ‘subprime’ applicants.

Even so, it is advisable to consult with an independent broker to discuss both your eligibility and the options available before applying. Your broker will be able to pair your requirements with an appropriate lender to ensure you get an unbeatable deal while advising on the alternative options available where applicable.

The recent raft of Bank of England interest rate hikes and subsequent mortgage rate increases came as no real surprise. Quite the opposite, as it had been common knowledge for some time that the historic lows the UK had become used to were on borrowed time.

Today, we are looking at a picture where millions of mortgage payers have found themselves struggling to make ends meet. Having signed up for ultra-low-interest fixed-rate deals some time ago, they have now been switched to standard variable-rate products with much higher rates of interest.

Elsewhere, you have those who are struggling to qualify for new mortgage loans in the first place, something that is not just affecting everyday home buyers but is also having a major impact on the property purchase decisions of BTL investors.

Meeting ICR requirements

Increasingly, BTL investors are finding it difficult to meet the interest cover ratio (ICR) set by major lenders as a key aspect of their eligibility requirements. This is where the interest payments on a buy-to-let mortgage are compared with projected rental income.

Typically, BTL lenders have a minimum ICR requirement of around 145%. Unfortunately, this means that the recent interest rate hikes (and the prospect of further hikes to come) mean that BTL investors must now produce evidence of higher projected rental income on the properties they plan to purchase.

Something that inherently means hiking monthly rents and potentially making their properties less attractive to prospective tenants could also be completely out of the question in some scenarios, such as a property with a reliable long-term tenant already in place that you would like to hang onto.

Bridging the gap

Over the past couple of years, investors looking to pick up BTL homes with high potential have been demonstrating greater interest than ever before in bridging finance. Bridging loans work in an entirely different way from conventional mortgages, in that they are strictly short-term solutions.

A bridging loan is a secured loan issued over a term of up to 12 months and, in many instances, can be arranged within a few working days. The loan is secured against assets of value (usually residential or commercial property), and the funds raised can be used for any legal purpose.

All of this has made bridging finance particularly attractive to investors in search of more flexible and accessible options than conventional BTL mortgages. With a bridging loan, there are no minimum ICR requirements whatsoever, and you do not need to provide any evidence of a background in property investments.

If you have sufficient assets of value to cover the costs of the loan and a workable exit strategy (how the loan will be repaid), this is often all that matters to bridging loan specialists.

This can help BTL property investors bridge the gaps in the services being provided by mainstream lenders. With a bridging loan, a buyer can purchase a high-potential BTL property in any condition and conduct the renovations and improvements necessary to bring it up to scratch. Interest then accrues at a rate as low as 0.5% per month, giving the investor plenty of time to work out their next step.

When the agreed loan term ends, the bridging loan can be refinanced onto a longer-term facility, such as a BTL mortgage. Or if rates are still far from agreeable, the property can be sold to generate significant capital gains and repay the loan in full.

Essentially, bridging finance is about giving investors welcome breathing space, during which they can think carefully about their longer-term decisions.

Bridging finance specialists across the UK have noted an uptick in applications from parents looking to help get their kids on the property ladder. Not that this is particularly surprising when considering the unprecedented difficulties being faced by first-time buyers.

In May, the average house price in the UK hit another record high of £289,099. This represents an increase of more than £2,850 from the previous month or 1%. House prices have now soared to record highs for 11 consecutive months and are up an astonishing 10.5% from the same time last year.

The likelihood of house prices falling over the coming months is minimal, but there are at least signs of a modest slowdown in house price acceleration.

“Yes, prices have still risen 1 per cent on the month, marking the eleventh successive monthly increase, and yes, prices are up by 10.5 per cent on the year, keeping annual price growth in double digits, but this is the slowest rate of growth since the start of the year and shows the challenges ahead cannot be ignored,” commented Alice Haine, Personal Finance Analyst at investment platform Best Invest.

“With mortgage rates surging, following four consecutive interest rate rises from the Bank of England since December and further hikes expected this year, and inflation of 9 per cent eating into real incomes, it is only natural that prospective buyers may take a pause before plunging into the market right now.

“Add in the cost-of-living crisis and the fact fuel prices are now at record highs [petrol prices set a new average record of 178.5p per litre on Tuesday], and the cost of buying a home may deter those already struggling to meet their monthly obligations.”

Insurmountable costs for first-time buyers

Speaking on behalf of Halifax, managing director Russell Galley highlighted how impossibly expensive it is becoming to buy property in the UK.

“For house hunters, the extent of the impact of property price inflation continues to be linked to the type of home they are looking to buy,” he said.

“Compared to May last year, you would need around £10,000 more to buy a flat, but an additional £50,000 for a detached home.”

“This clearly creates a knock-on effect for those looking to make their first home move, as the rungs on the housing ladder have become increasingly wide.”

For first-time buyers, pulling together a ten per cent deposit for an average UK home now means saving at least £30,000. Where lenders insist on 15% or 20% deposits, the figure could be as high as £60,000.

Even last year, when average house prices were lower than today, data from Barclays indicates that the average deposit paid by a sole first-time buyer was £61,100.

This is the kind of money the typical first-time buyer simply cannot come up with. Faced with an escalated cost-of-living crisis, the dream of homeownership for millions of prospective buyers is likely to remain just that.

House prices are up a staggering £123,016 (or 74%) over the past decade, during which wages for many have stagnated.

Tomer Aboody, director of property lender MT Finance, said: “With prices rising by 74% in the past decade, it shows just how much the market is running away from first-time buyers,” commented Tomer Aboody, director of property lender MT Finance.

The bank of mom and dad

Traditionally, parents looking to help their children get on the property ladder have provided financial support in the form of a contribution to their deposit. With deposit requirements at an all-time high, many first-time buyers are finding this the only realistic way to qualify for a mortgage.

Elsewhere, first-time buyers (and their families) are setting their sights on properties away from the conventional housing market. With affordability and accessibility in mind, many are looking to purchase properties in need of renovations and repairs with the aim of gradually moulding them into their dream homes.

This approach has generally proved problematic for first-time buyers seeking funding from mainstream lenders. The vast majority of High Street banks are unwilling to lend against properties in a poor state of repair, which are often categorised as ‘not mortgageable’.

For example, if a property lacks a functional kitchen or a working indoor bathroom, it may be completely out of the running for a conventional mortgage.

This is where bridging finance is proving to be a lifeline for first-time buyers across the country. Bridging loans differ from conventional home loans in that they can be used to purchase any type of property in any state of repair. They are also designed to be repaid as promptly as possible, usually within 1 to 18 months of being issued.

How bridging finance is helping first-time buyers

To understand how parents are using bridging finance to help their children buy their first homes, consider the following everyday example:

1. A property is set to go under the hammer at auction for considerably less than its true market value, as it requires considerable repairs and renovations to bring it up to a liveable standard.
2. The parents of the first-time buyer take out a bridging loan, using their own home as security for the facility. Bridging finance can be arranged within just a few working days, making it ideal for time-critical home purchases and investment opportunities.
3. A bridging loan is provided to cover the full costs of the property and those of the subsequent renovations. The property is purchased at the auction, payment is made in full, and the new owners begin the renovations.
4. Several months later, the property has been brought up to an excellent standard and is no longer classified as not mortgageable. The property is remortgaged onto a longer-term repayment facility (like a conventional mortgage), and the bridging loan is repaid.
5. In the meantime, the bridging loan will be charged at a rate as low as 0.5% per month, making it a hugely cost-effective product when repaid promptly.

What is important to note about this approach to purchasing a home are three things:

1. There is no need to come up with any kind of deposit whatsoever, as no deposit is payable on a bridging loan. This means first-time buyers (with the assistance of their parents) with limited on-hand savings need not be counted out of the running.
2. Bridging finance opens the door to the kinds of property purchases that would be out of the question with a conventional mortgage. Particularly when it comes to fixer-upper homes in questionable condition, traditional mortgages are typically unavailable.
3. Prompt repayment of a bridging loan can make the transaction in its entirety so much more affordable than arranging any conventional loan or mortgage. Monthly interest can be as low as 0.5%, and all other associated borrowing costs are negligible.

Given the estimated 200,000 properties in England that have stood unoccupied for six months or more, bargain hunters are advised to extend their search beyond the conventional property market.

Flexible finance for homeowners

Bridging finance is also a significantly more flexible and accommodating facility than any conventional mortgage. This can be particularly useful for applicants who are unable to provide formal proof of income or may have imperfections on their credit file.

Likewise, homeowners who are retired and would likely be turned down by high-street banks are also eligible for bridging finance.

Qualification criteria for bridging finance are not nearly as strict as conventional mortgage eligibility checks.

Bridging loans are issued on the basis of the following:

1. Ownership of assets of sufficient value to cover the costs of the loan, i.e., the property of the applicant.
2. Evidence of a workable exit strategy in reference to how and when the loan will be repaid by the borrower

A good credit score and evidence of a stable financial position will pave the way for a more competitive product. But even with poor credit, no proof of income, and a history of bankruptcy, it is still perfectly possible to qualify for bridging finance.

Consult with an experienced broker

If you are considering taking out a bridging loan to help a member of your family get on the property ladder, independent broker support is highly recommended.

Bridging finance is issued in a variety of forms with different purposes in mind, so it is important to know which type of bridging loan is right for you. Your broker will also be able to advise on the alternative financial products available if there is something that could prove more cost-effective than a bridging loan.

Your broker will negotiate on your behalf to ensure you get an unbeatable deal from a top-rated lender. Many of the UK’s leading bridging specialists offer their services exclusively by way of broker introductions and do not deal with customers directly.

For more information on any of the above or to discuss the potential benefits of bridging finance in more detail, contact a member of the team at UK Property Finance today.

Whether you are planning to put your home up for sale or you are simply looking to improve it for your benefit, getting the best return on your investment is always a priority.

But which residential renovations add the most value to a home, over and above the costs of the project? If you are looking to maximise your home’s market value, which renovations should you be setting your sights on?

A word on property type and location

Before getting started, it is worth noting how the ROI on any given renovation may be different from one part of the country to the next. For example, data from the Federation of Master Builders (FMB) indicates that while adding an en-suite bathroom to a bedroom in London could add around £15,000 to the property’s value, the same project in the northeast of England would contribute £2,000.

Before performing any major refurbishments, consult with a reputable local construction firm for their advice and recommendations.

Loft and garage conversions

One of the most popular (and profitable) ways to add value to a home is to convert a garage or loft into a fully functional living space. Research suggests that while a quality loft conversion can add as much as 15% to a property’s value, a garage conversion can contribute as much as 20%.

While both projects are fairly extensive in nature, they can also be surprisingly affordable. A simple loft conversion can be conducted for around £10,000 and up, whereas a garage can be converted for as little as £5,000.

Energy efficiency improvements

Homebuyers are placing greater emphasis on energy efficiency than ever before. As a result, energy-efficient home improvements can add significant value and appeal to any type of property. Smaller projects like adding cavity wall insulation and higher-quality loft insulation can be covered with no more than around £1,000. Fitting an energy-efficient boiler coupled with a smart thermostat could add a price closer to £3,000, while the installation of high-efficiency double glazing could cost £5,000 or more.

Either way, research from the UK government suggests that energy-efficient home improvements can contribute anything from 15% to 35% extra to a home’s value. Irrespective of the costs of the renovations, the ROI could be huge.

External improvements and landscaping

First impressions are everything when looking to get the best possible price for a property. Oftentimes, prospective buyers have made their decision long before setting foot through the door. An attractive exterior is so important that some studies suggest a well-kept garden can add up to 20% to the value of a residential property.

Landscaped gardens with private recreation spaces and plenty of decorative plants can be particularly profitable when selling a home. The installation of good garden lighting can also make a major difference, particularly when presenting your home to prospective buyers at night. Importantly, a garden that looks relatively straightforward to keep well-maintained is essential. A garden that will be a full-time job to tend to is never particularly attractive.

Kitchen and bathroom upgrades

Kitchens and bathrooms tend to be scrutinised particularly heavily by prospective homebuyers. A complete kitchen renovation can generate a generous ROI, but so too can replacing things like worktops, cabinet doors, and appliances. If it is an option, creating an open-plan living and dining space by removing an internal wall is worth considering. Some estimates suggest that while the project may cost around £5,000, it has the potential to add up to £50,000 to a home’s market value. Installing an en-suite bathroom also guarantees a decent ROI, typically up to a maximum of a 5% property value increase.

It remains to be seen whether the government decides to extend the stamp duty suspension deadline beyond March 31 next year. In the meantime, short-term loans like bridging finance could help movers and buyers make the most of the temporary stamp duty holiday.

COVID-19 has had a major impact on all aspects of the housing market. On the High Street, major banks and lenders are processing applications and authorising mortgages much more slowly. Elsewhere, the property chain as a whole is moving at a sluggish pace, often compounded by disruptive bottlenecks.

All of which would be inconvenient at the best of times, though the main concern is with the stamp duty suspension deadline fast approaching. There’s still technically time to organise a home loan, but considering much faster and more accessible funding like bridging finance is nonetheless advisable.

The speed and simplicity of bridging finance

Bridging finance outpaces all traditional property loans and mortgages by a clear margin. Depending on your requirements and personal circumstances, the money you need to purchase a property could be yours within a matter of days.

Specialist lenders issue bridging loans almost exclusively on the basis of security, i.e., the value of your current home or any other qualifying assets you choose to use. If your security is considered viable and comfortably covers the costs of the loan, there’s every chance you’ll qualify and gain access to the money in no time.

By contrast, a conventional home loan or mortgage in the current climate could see you sitting around for days or even weeks, simply waiting for a final decision to be made.

As the government’s stamp duty suspension applies to properties with a market value below £500,000, it applies to approximately 90% of all residential property purchases. This in turn means that nine out of 10 buyers planning purchases between now and March could capitalise on the offer, saving an average of £4,500.

How bridging finance works

A bridging loan differs from a conventional mortgage in that repayment is required within a much shorter period of time. Whereas a mortgage may be repaid over the course of five to 35 years, bridging loans are almost always repaid within six to 18 months.

Interest on a bridging loan therefore applies on a monthly basis, often less than 0.5% with a competitive deal. The funds are made available within a matter of days, the property is purchased, and the loan is repaid in full at a later date when the borrower’s existing home sells.

Where used to leverage the government’s stamp duty suspension, bridging finance could prove particularly profitable. Sourced from a leading lender and repaid as quickly as possible, the subsequent £4,500 average stamp duty saving could cover several of the loan’s major borrowing costs.

For more information on the potential benefits of bridging loans or to discuss the mechanics of the temporary stamp duty holiday in more detail, consult with a member of the team at Bridgingloans.co.uk today.