The bridging sector has expanded rapidly over the past couple of years, with many more lenders offering such finance. This has led sceptics to surmise that there must be saturation in the marketplace because there can only be finite demand.
And yet we continue to see examples where traditional lenders are failing clients, leaving them dependent upon bridging finance. Only this week, a client was referred to me because he was struggling to raise £200,000 from his bank to put towards a deposit on a £2m property. It was not because of lack of income – he is a millionaire with a very healthy income and a significant property and investment portfolio. No, the problem was an administrative mix-up with a credit card which meant his normally impeccable credit rating was compromised. His bank refused to lend him the money required, leaving him with just a week before contracts were due to be exchanged.
Bridging finance provided a solution where the traditional lender failed. The client is a good risk but his bank refused to consider his usually impeccable track record of paying bills on time and in full because of this recent blot on his copybook. It was the wrong decision.
Bridging isn’t suitable for everyone but it can be a solution for those in a tight spot. Speak to an independent broker such as Anderson Harris for advice and to find the right deal for your circumstances.