Bridging finance is well known as a faster route to securing funds for property transactions, making it perhaps now more than ever, a vital tool in any mortgage brokers armoury. Here’s how bridging finance may be able to help your clients beat the stamp duty deadline:
Your client has lost their buyer (chain break)
Naturally, we’re seeing more chain-break cases than usual due to the recent increase in property transactions. However, the most common reasons behind this right now, are due to lender criteria changes, and also changes in personal circumstances such as furlough and job losses.
Losing a buyer at any time is stressful, but particularly whilst trying to beat the stamp duty deadline. However bridging finance may be able to save the onward property transaction, and up to £15k in stamp duty fees. Your client may be able to use bridging finance to complete on their onward purchase now and then use the sale of their existing property as the exit strategy.
New property purchases and those suffering due to lender processing delays
Whilst the race is on to beat the stamp duty deadline, the heat is also on for the conveyancing sector. For those who wish to start the purchase process from scratch and try to beat the stamp duty deadline, the traditional mortgage route could be cumbersome given that many are experiencing severe processing delays. In this scenario, bridging finance should be considered to speed up the process, since the time from application to offer can be achieved in as little as a few days, allowing the client to start the conveyancing process sooner.
For buyers who are experiencing delays with their mortgage application, the race to meet the stamp duty deadline and complete the transaction is likely to be easier since the conveyancing process will have already begun.
Please note that if using a bridging facility to purchase a new home whilst still in possession of an existing property, there will be an amount of SDLT that will be payable upon completion. This amount may be claimed back in full upon sale or disposal of the current property, for full details of rates and amounts, please visit: https://www.gov.uk/guidance/stamp-duty-land-tax-temporary-reduced-rates#higher-rates-for-additional-properties
TO FIND OUT MORE, OR TO DISCUSS A CASE, CALL 01277 508 959
FOR INTERMEDIARIES ONLY AND NOT INTENDED FOR THE GENERAL PUBLIC