UK borrowers turn to bridging loans for property purchases

Over the past decade, fast bridging loans have become a popular avenue of finance for those seeking to close on a property purchase or lucrative business opportunity quickly and without delay. The imposition of more rigid and lengthy application processes by traditional lenders can be a source of much frustration for borrowers in need of capital. As a consequence, more people are readily taking advantage of specialist finance – one in five UK homebuyers has now used some form of alternative finance to purchase a residential property, with buy-to-let investors particularly likely to use bridging loans.

To make sure our expanding network of brokers and borrowers are up-to-speed on the way the property and finance markets are evolving, Market Financial Solutions regularly releases research reports. Based on nationally-representative surveys of more than 2,000 people, these reports uncover how investors and property buyers perceive different segments of the real estate and alternative finance markets.

Released in late September 2018, MFS’ latest report – ‘How are UK property buyers financing their purchases?’ – delivered timely insight into the types of financial products UK adults use to buy property. Demonstrating the value of our research, the findings were covered in a host of prominent publications, including: The Financial Times, Mortgage Introducer, Property Reporter, The Fintech Times and Global Banking and Finance Review.

While it is promising to note that 20% of homeowners have used alternative finance to purchase a property in the last decade, the report also revealed a lack of general awareness towards bridging loans. Specifically, nearly half (49%) of UK property buyers admitted they did not have a strong enough understanding of bridging loans or the situations in which they can be used.

Generating greater market awareness of the financial products that can be used to buy a property is evidently needed among both brokers and homebuyers.

Bridging loans are ideally positioned for those investors seeking to release funds from their existing property assets. And with more than a decade’s experience in this sector, MFS is renowned for the speed at which it works, as well as the way it works closely with its borrowers to ensure they receive the tailored finance they need.

Our expert underwriters are on hand to provide advice about our bridging loans. To find out more, be sure to speak with a member of the MFS team today on 020 7060 1234.

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