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Bridging finance to snap up bargains

ended 13. February 2023

With house prices under pressure and many offers being accepted 10% below asking, are you seeing more portfolio landlords and developers use bridging finance to snap up properties, or are they putting in place pre-approved bridging finance facilities so that they are ready to go if prices continue to fall? When, based on your experience, do professional landlords and developers think the bottom will be hit? In the Spring, Summer or even later in the year (or perhaps next)? We'll be issuing this one at 09:30 this AM. No need for an essay, just a few lines will do.

2 responses from the Newspage community

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Sofia Jones
Mortgage & Insurance Adviser at Penny House
I have seen a noticeable increase in bridging finance enquiries in recent weeks among landlords and property developers who are circling for a bargain. Higher term rates have narrowed the gap between the cost of bridging and typical mortgage costs, and perception is everything. I think we will continue to see some properties sold at a discount this year, with professional investors positioning themselves to snap them up, but I don’t think there will be enough volume of cheaper houses being sold to cause the ‘crash’ that many people suggest is coming.
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Graham Cox
Director at Bridging Hub
We've had several bridging enquiries of late from business owners looking to buy property without tying up their own cash or assets. Most think prices will bottom out in the first half of this year, though I personally think it will be 2024.