With the cost of moving home higher than ever, more and more people are finding themselves in their large family home when their children have flown the nest, unable to downsize. Such inactivity restricts the movements of younger families who are looking for a property to accommodate their growing family.
Encouraging such activity in the market is widely thought to be one way in which to address the housing crisis we are currently experiencing and is so widely reported. Furthermore, activity at the top end of the market has been rather slow in recent years so even if the older generation wished to downsize, they may not be able to if they are struggling to sell their home.
How can a short-term loan help me downsize?
However, we are seeing signs of lenders recognising this issue and developing products accordingly. For example, one lender in our extensive panel offers a short term finance product, which has been designed to assist customers moving home who have not yet sold their existing home, or to purchase a property pending the sale of an existing asset. The details of this product are below:
- Minimum loan £200,000
- Maximum loan £1,500,000
- Terms available up to 1 years
- No Early Repayment Charge
- 2% Arrangement Fee (min. £6,000)
- 1% Procuration Fee paid within 7 days of completion
- Application to offer within 14 days for fully packaged cases
Bridging finance has long been thought of as somewhat unusual and a last resort but this is an example of how it’s becoming more ‘mainstream’. This short term finance product has been hugely popular with older clients, highlighting its importance in the downsizing market.
If you are thinking of downsizing and wish to speak to one of our expert bridging finance brokers about this product, get in touch with us today. We would be happy to discuss your requirements and advise you on the most suitable option.