Specialist distributor Clever Lending is calling on brokers to think about regulated bridging loans as a solution for delayed property purchases, if a chain has broken or completion is looking unlikely to be achieved before the end of the Stamp Duty Land Tax (SDLT) holiday.
The firm argues that regulated bridges are a great short-term solution to make sure delayed transactions are complete – and new purchases can be made – in time for when the scheme ends.
Paul Day, Clever Lending’s director of business development, said: “The property market has been extremely buoyant over the past six months, with people taking advantage of the government’s SDLT break.
“Although we don’t know if this will be extended, there are reports that there are up 50% more homes in the sales process than there were this time last year, we are also getting messages from lenders and particularly solicitors saying they’re very busy and getting booked-up as the deadline looms.
“A bridge could come in here and save the day, by providing quicker short-term finance to secure new properties now and save the SDLT. It could even help the property chain move and achieve the deadline, with the exit being a traditional mortgage.
“The latest Bridging Trends report, which Clever Lending contributes to, shows a 46% rise in gross bridging loan volumes in Q3 2020, as activity recovers from the Covid-19 lockdown.
“This type of finance is a great solution for home buyers, and I would urge brokers to get in touch if they have clients who are looking to take advantage of the SDLT holiday while they can. Clever Lending are happy to take on the advice process or package the case with the introducer giving the advice.”