Bridge the gap by Tomer Aboody

Monday, 4 September 2017
Borrowers who need fast access to funds regularly see their investment purchases scuppered by lenders taking too long to process applications.

With mainstream lenders having to implement stricter affordability testing on residential and buy-to-let (BTL) purchases, it has been harder for borrowers to get BTL mortgages, as more stringent underwriting has made the application a more time-consuming process.

This can severely hinder those requiring fast access to funds, as many property purchases rely on the ability to secure finance by a set completion date; when mortgage delays hold up the deal, the borrower could miss out on an investment opportunity.

Bridging finance has been able to fill the growing gap between the borrower’s need to access funds swiftly and mainstream lenders’ ability to provide them, giving borrowers the ability to buy quickly when opportunities arise.

Speed is critically important in bridging finance. It is what makes bridging finance a fundamental tool for those who need to raise funds within a short time-frame.

Whereas a mainstream bank can take several months to agree a loan in a process that can be stressful as well as time-consuming, a bridging finance lender is often able to make lending decisions within hours of initial enquiry and release funds in less than a week, preventing property investors from missing out on time-sensitive opportunities that come their way.

With highly professional specialist lenders offering flexible products at competitive rates, bridging finance has become an attractive proposition to those property investors who need certainty when conducting their business and who often need to move swiftly in order to capitalise on an opportunity.  

So, whether you have been let down by your BTL mortgage lender at the last minute and need to exchange/complete on your purchase, or your lender is taking too long to agree your BTL mortgage and you need to exchange to secure the property, a bridging loan could provide the solution.

As an example, mtf was approached by clients looking for £649,000 to purchase their business premises. The clients had been given a good deal by their vendor, but needed to act very quickly. With only three weeks to complete the purchase, the borrowers approached mtf, as their mortgage provider was unable to complete within the tight timescale.

In just two weeks, mtf was able to provide a £649,000 bridging loan, secured by way of second charge at 59% loan-to-value, over the clients’ residential property.

By taking out a bridging loan, the clients secured the funds needed to complete the purchase of the premises where they had operated their business from for over 25 years.

mtf can approve a bridging loan in a few hours and we regularly deliver funds in a matter of days.

mtf is a leading bridging finance lender specialising in short-term loans, both on a first and second charge basis, and is recognised throughout the industry for its speed and service.

Established in 2008, the company has won multiple awards including Best Service from a Bridging Finance Provider at the Business Moneyfacts Awards 2017, Best Bridging Finance Provider at the Business Moneyfacts Awards 2016, Service Excellence Award at the Bridging & Commercial Awards 2015 and Best Service from a Bridging Finance Provider at the Business Moneyfacts Awards 2014. It was named ‘Short-term Lender of the Year’ by the NACFB in 2014.