Home buyers turning to bridging loans to fix broken property chains
Since the mini-budget in September, we've heard from more and more people impacted by chain breaks looking for bridging finance to complete their property purchase.
Mortgage products have been pulled, mortgage rates have hit fresh 14-year highs, and increased uncertainty has caused an increased number of property chain breaks.
Sales are dragging. The average turnaround time on a house purchase has rocketed to a record high of 133 days, according to property data company Landmark Information Group. Some buyers' mortgage offers are even expiring before they are complete and need to source a new mortgage offer from the reduced number available at far higher rates.
So buyers are facing a crisis. Do they see through their purchase knowing they will have to find the money to cover far higher mortgage bills, or do they pull the plug, abandon their purchase and sit tight? All impacting their chain.
More buyers are pulling out, but when sellers still want to purchase their new house, bridging loans are becoming a more frequently sought-after solution.
We've taken a look at why more property sales are falling through and chains are breaking, and why more people are using bridging loans to save their new home purchase.
References
bridgingtrends @ bit.ly/3hurgIy
thetimes @ bit.ly/3NRhpIQ
thetelegraph @ bit.ly/3UqECUI
finbri @ bit.ly/3NRhvQI
finbri @ bit.ly/3ElbM2v
bbc @ bbc.in/3UMARJ5
homesellingexpert @ bit.ly/3tg637E
financialtimes @ on.ft.com/3A5CHN7
thetelegraph @ bit.ly/3DUxHvS
© 2022 Design by finbri, share this for free here bit.ly/3igHW6p
Residential Bridging Loan
A residential property bridging loan is fast, flexible bridging finance for property purchases. Buy-to-lets, HMOs, properties with short leases, property flips, investment purchases can all be financed, as can fixing chain breaks or mortgage delays, and refinancing an existing property loan. These loans require residential property or a group of properties as security.
Discover More
