As an amateur DIY-er, I’ve spent a lot of my spare time during lockdown making a few improvements around my house.
While battling to put up some new shelves, I started wondering about how many other people have been doing the same thing.
Well, quite a few of us, as it turns out. After doing a bit of research, I stumbled upon Money.co.uk’s 2020 Renovation Nation Report, which makes for some fascinating reading.
According to the report — which surveyed 1,022 UK homeowners — almost two-thirds (65%) have invested in their properties during lockdown.
The research goes on to say that many homeowners have had to resort to extreme measures to make these improvements, such as spending cash originally put aside for a holiday, dipping into their savings accounts, and even using money earmarked for an engagement ring or wedding. There is no doubt that some of them have taken out large bank loans to finance their projects.
But what happens if you’re a BTL landlord who needs to make improvement work to a property and you’re struggling to raise the funds needed to carry it out? Tougher affordability requirements introduced in recent years have made it harder for borrowers to access funds. With high street lenders not always able to offer them the solutions they need, what alternatives are available to borrowers with short-term borrowing needs?
This is where bridging finance could help. Historically, these products were used mainly for ensuring property chains were completed but, in recent years, they’ve come to be recognised as a viable solution to a wide range of different scenarios in their own right.
Do you have a customer who needs to carry out some light refurbishment to a property, such as installing a new boiler, or fitting double glazing to meet the minimum EPC rating?
Bridging finance could help. Or maybe a customer who wants to move quickly and snap up an undervalued property at auction? Again, as long as there’s no change in use of the property, bridging finance could help.
The secret to bridging finance’s success lies in its flexibility and speed. As time is usually of the essence with cases such as these, customers need to facilitate a deal on a fast turnaround. Here at Precise Mortgages, our bridging finance is designed to help even more of your BTL customers, and includes regulated and non-regulated products which could be ideal for those looking to carry out light refurbishment work, buy a property at auction, or expand their property portfolio. Where possible, we aim to use automated valuation models, and we offer joint legal representation, which can significantly reduce the time it takes to complete the legal process on a deal.
In these tough economic times, borrowers need as many options available to them as possible. If your customer is asking you how they can get the funds they need as quickly and efficiently as possible, it’s worth remembering that bridging finance could be the answer.