Significant Increase Reported in Number of Buy-to-Let Landlords Applying for Bridging Finance

The team at Bridgingloans.co.uk has reported that 2016 was the busiest year ever in terms of the number of bridging loan applications received from those in the Buy-to-Let market.  With the vast majority of banks and building societies restricting access to much needed property finance by tightening up borrowing regulations, Buy-to-Let property investors have found themselves forced to search for alternative methods of acquiring secured funds which cuts out conventional high street lenders altogether.

Although the Buy-to-Let property sector offers many potential lucrative rewards, the process of buying into the market has become increasingly difficult to invest in with many financing solutions becoming more problematic to obtain.  However, unlike traditional mortgage products, short-term financing options such as bridging loans are now more affordable than ever with lending criteria being much easier to satisfy.

Innovative Funding Solutions

"If you are looking to borrow a substantial amount in a quick timeframe using the equity tied in with a commercial or residential property as security  then a bridging loan could be the perfect solution.  Commercial mortgages are often quite complicated to obtain and the process of raising funds using a number of commercially owned properties as security is usually a long and drawn out process with many hurdles to negotiate before the required finance is made available to the borrower.  Intelligent bridging finance can be sourced and released in a matter of days instead of the weeks or months that are typically involved with most other borrowing options." - UK Property Finance

There are two main differences that separate bridging loans from conventional property finance products which make applying for bridging finance a much more attractive option for those in search of Buy-to-Let borrowing solutions.

Firstly, the capital provided with a bridging loan application is released much more quickly, meaning that an investor will always have access to the funds they require with sufficient time to complete purchase even when funds are required almost immediately, such as in the case of raising finance to complete a deal sourced at a property auction.

Secondly, the low interest rates and shorter repayment period mean that acquiring a property by means of bridging finance is almost always the cheapest method of expanding a residential or commercial real estate portfolio.  Whatever the reason for borrowing, an intelligently sourced bridging loan offers unbeatable value for money with unrivalled speed and flexibility in terms of securing the required finance.

An Exceptional Increase in Borrowing Activity

"Bridging loans can be used for all manner of reasons and are not just restricted to property purchases.  They can be used to solve short-term cash flow problems of any nature although most lenders will only consider applications that use UK-based property or land as security.  Unlike conventional property finance such as long-term residential or commercial mortgages, bridging loans are typically paid off with a single repayment at the end of the loan term which covers the full amount borrowed plus any rolled-up interest charges and broker fees." - UK Property Finance

When considering the many advantages that bridging loans have over other types of finance, it is not difficult to see why so many Buy-to-Let investors have found applying for bridging finance to be so advantageous.  With so many banks and building societies rolling out new and much harder to satisfy borrowing restrictions, which are preventing quick and easy access to much needed funds, the bridging sector has so much to offer for those in search of fast and competitive finance in order to buy new Buy-to-Let properties or refurbish their existing real-estate stock.

The team at Bridgingloans.co.uk have stated on many occasions that applying for bridging finance is much quicker and easier than applying for similar products from high street sources, with tailored solutions being delivered in accordance with the individual needs of the borrower.

Visit Bridgingloans.co.uk today and see how you can save time and money when applying for a more intelligent borrowing solution.