The COVID-19 lockdown measures are posing challenges for the property market. This is true for buyers and sellers stuck in a property chain. Social distancing means agents and buyers are not able to visit a home. As a result, it is difficult for valuations to be completed.
At the same time, borrowers are struggling to access finance from mainstream lenders. Some have announced they are no longer processing new applications. Others have reduced the products and services on offer. This means those stuck in a property chain could see their deal fall through.
Despite these challenges, demand for real estate is high. According to Halifax, house prices rose by 3% in the 12 months leading to March 2020. What’s more, our recent report explained why property is a safe and resilient asset. Download your copy here.
In light of these challenges, what finance options are available to home buyers?
Taking advantage of specialist finance
Bridging loans give borrowers quick access to finance. Free of excessive paperwork, they are popular for UK property investments.
Bridging loans are flexible and tailored to the needs of each case. And they can also be deployed in a matter of days, not weeks.
At MFS, there has been an increase in inquiries for bridging loans. There are many reasons for this. Some buyers require fast capital to complete on a sale. Others require an extension on existing loan facilities.
COVID-19 has also increased the risk of chains breaking. Sellers could take their property off the market, while lenders could overturn a mortgage that was agreed to in principle.
Over the coming months, MFS is on hand to support the needs of buyers. We have access to in-house funds and direct contact with our underwriters. Unlike other lenders, we are still accepting enquiries for our bridging loans.
Get in touch to find out how MFS’ bridging loans can support your next property purchase. Contact one of our underwriters by calling 020 7060 1234 or emailing firstname.lastname@example.org.