09 Oct 2020
Magni Finance, a leading high net worth mortgage broker in London have noticed that the market for bridging finance has grown in interest recently.
Bridging finance is a short term funding solution secured against property. In many cases, the speed of the transaction can make the difference between getting the property and not.
With the majority of the working population now working from home, demand for people looking to move out of London to the country has greatly increased. Higher demand means people need to move quickly and in many cases are under pressure to secure the onward purchase prior to selling their London home.
The issue with traditional mortgages is the processing time. Prior to lockdown, average processing time would take between 1-2 weeks, now it is taking between 3-4 weeks. Bridging finance can be obtained in a matter of days, hence the benefit of securing short term funding.
However, where the obvious benefit of bridging is speed, the downside is the cost of funding. Rates start at 0.45% per month and go above 1% depending on the circumstances. It is therefore vital that you are comfortable with the overall cost and ensure that you have a plan to pay back the short term funding.
Ashley Thomas, Director at Magni Finance commented:
“Bridging Finance has grown in popularity since Covid-19. They are being considered more seriously now, as the cost has reduced significantly recently due to a number of options available now. Whether it is through specialist bridging lenders, peer to peer funding, private banks or even family offices, there are a number of options that are possible.
When considering bridging finance you need to make sure that you have a viable exit strategy as it is a short term funding option. For the right situation, you can get a great deal.”
ENDS
For further information please contact:
Ashley Thomas
020 7871 2589
Notes to editors
Magni Finance is a high value mortgage broker based in London. They provide expert advice and a premium service for UK and International clients. They have built up excellent relationships with a wide range of specialist lenders and can obtain the most competitive finance solutions.