Of all the asset classes currently available to UK investors, real estate has remained a leading destination for those seeking safe and secure returns over recent decades. Property’s attractiveness stems from its strong historical performance, as well as its resilience in the face of economic shocks or volatile market conditions. Since August 2008, the average price of a UK home has increased from just over £176,000 to an impressive £228,385 ten years later. Notably, this growth comes amidst the global financial crisis and, more recently, the Brexit announcement.
While market preference for UK property remains consistently strong, the typical avenues of financing real estate purchases have changed significantly. The imposition of more stringent lending measures by traditional lenders in the years following the global financial crisis that took hold in 2008 have made it difficult for some borrowers and businesses to access capital. High street banks became much more risk averse, and the process of acquiring a loan – or more specifically, a mortgage – has become arduous and time-consuming for many people.
Taking into account the full range of traditional and alternative finance products currently available to UK property buyers, Market Financial Solutions has sought to uncover exactly how they are financing their real estate purchases, and the factors influencing their decisions. Having surveyed a nationally-representative sample of 2,000 UK adults, our latest report – “How are UK property buyers financing their purchases?” – offers timely insight into the UK public’s preferred type of finance. Featured in the FTAdviser, the report also reveals a notable uptake in the number of people using bridging loans over the past ten years.
The rise of alternative finance products such as bridging loans means that UK adults looking to invest in property now have access to flexible finance options tailored to their individual needs. Indeed, figures released by the Association of Short Term Lenders (ASTL) revealed just how significant the rise in market demand for specialist finance has been in recent years – the total value of bridging loans issued in Q4 2017 exceeded £1 billion.
Market Financial Solutions has over a decade’s worth of experience ensuring its borrowers are ideally positioned to take advantage of real estate opportunities as soon as they arise through bridging finance. Looking to the coming months and years, MFS will be on hand to provide its borrowers with the advice and finance they need to quickly and confidently pursue their property goals.
Click here to download your exclusive copy of MFS’ latest report.