BUSINESS & FINANCE
HOW BRIDGING LOANS CAN HELP THOSE WITH COMPLICATED FINANCIAL CIRCUMSTANCES
Securing finance for a property investment can be challenging , particularly for individuals with complicated financial profiles .
Many mortgage providers apply a rigid , tick-box methodology to assess applications . They want to see a regular income , easy-tovalue assets and , ideally , a good track-record of repaying debt .
However , for some people – such as investors , buy-to-let landlords and high net-worth individuals – this approach can often prove problematic , with their more complex financial profiles presenting headaches to traditional lenders that lack the skill and experience in dealing with such clients . In fact , nearly one in five high net worth individuals have had a mortgage application declined in the last decade , according to research by Butterfield , a private bank .
Bridging loans for HNWIs
A bridging loan could be a viable alternative for anyone considering a property investment , particularly if they have encountered obstacles when applying for mortgages . There are two reasons for this .
The first is the speed at which loans can be deployed .
According to figures from Trussle , the average time taken for a property purchase to complete was 163 days earlier this year . Mortgage approval timelines also almost trebled from eight to 22 days over the course of 2020 . And that is just the approval of the application – not the delivery of the loan .
Bridging lenders , by contrast , can progress from receiving an enquiry to delivering the funds in a matter of days .
Given the competitive nature of the property market , the ability to secure the necessary capital to move ahead with a real estate investment at pace is essential .
The second significant benefit of bridging loans is their flexibility . As the aforementioned research highlights , many individuals with complex finances struggle to satisfy the criteria required from some traditional lenders .
Experienced bridging loan providers like Market Financial Solutions ( MFS ) find creative solutions to meet a client ’ s needs . Crucially , this involves assessing a person ’ s full financial profile – how and where their wealth is held – as well as their backgrounds , such as their acumen as an investor , when assessing what loan could be offered .
Exceptional customer service
For those with complicated financial profiles , it is vital they seek bridging providers that have the expertise to cater to their exact needs . As noted , a fast but flexible approach is key – the best lenders can create then deliver bespoke financial solutions within days . And they will also provide a superior , stress-free experience to the client .
MFS prides itself on clear , transparent communication with its clients . When we say yes , we mean yes ; we do not over-promise to clients , nor do we lure them in with attractive rates that fail to materialise .
Rather , we deliver an exceptional service that complements the industry-leading bridging products we have to offer – and we keep clients up to date with developments every step of the way , ensuring it is a fast , painless process .
138 The Art of Luxury Issue 48 2021