On a personal level I’ve noticed that not only have prices in North West London increased markedly but that buying interest is high, especially in locations within catchment areas of good schools. For example, a property in Finchley attracted over 20 applications for viewing appointments on the first day it was on the market.
Clearly buyers who have their financial ducks in a row are in a prime position to get the house they want. This applies both to owner-occupiers and buy-to-let investors. Although lending by mainstream financial institutions is increasing there are still delays, even for prime customers. For anyone who doesn’t tick all the boxes it remains difficult to get funding.
Bridging lenders are attuned to the needs of customers who want the security of knowing funding will be available without unnecessary delay. This puts buyers using bridging finance on a par with cash buyers and enables them to negotiate price from a position of strength.
The prospective seller, who is often looking to purchase another home, also derives comfort from knowing exchange and completion will not be delayed. So, both for vendors and purchasers, bridging can help when time is of the essence.
Bridging finance is a short-term solution and should be considered a cost of buying or selling, rather than a cost of funding. It also provides the borrower with time, time to search for the best long-term deal. Brokers are best placed to advise customers on the best total solution, taking into account the needs and desires of their clients.
As always, bridging is not a ‘one size fits all’ solution and it won’t be suitable for every borrower but bridging lenders are used to providing customised solutions and for some borrowers this will be just the answer they are looking for.
Benson Hersch is CEO of the ASTL
