Anyone interested or invested in the current property finance market will be aware that bridging finance has embraced some innovative changes, now introducing cheaper bridging finance for high net worth mortgages. Transforming its reputation from dirty word to opportunistic, what has, until now, often been regarded as a ‘product of last resort’ or an unnecessary expense, is now evolving and creating pioneering solutions for high net worth mortgages.
With increasingly lower prices now competing with the mainstream mortgage market, the bridging market has found itself in the midst of a rate war with lenders offering cheap bridging finance deals below 0.6% a month.
As such, pure commercial bridging can currently be obtained at just below 1% per month, semi-commercial from 0.65%, second charge at 0.75% and land with planning at 1%. All at an approximate fall of 0.25% over the past 12 months.
This downward pricing trend has occurred on both the residential and commercial sides, changes of which Islay Robinson CEO at Enness Private Clients, described as “a natural progression in the short term loan market to provide more chain-break solutions.”
Despite this, the bridging market is still very small in comparison to term lending, and for that reason, key lenders still rely heavily on large market share to make bridging finance worthwhile. For example, a company may lend over £2bn this year, yet less than 15% is likely to have come from short term lending.
So what does this mean for high-net worth mortgages?
For high net worth mortgages, recent contest within the prime bridging market has increased the appeal of bridging loans to consumers and intermediaries alike. With more opportunities readily available, particularly for high net worth mortgages, cheap bridging finance is now far removed from the volatile reputation of years gone by.
With contributing factors to consider (ranging from speed required, personal and repayment circumstances and assets as security) there is, understandably, no standard price rate for bridging finance for a high net worth loan. The cost is directly linked to the complexity of a transaction. Whether you are bridging the gap between a new property and your current residence, or wish to place an offer but are unable to sell for a few months – a bridging loan could be your perfect solution.
This is where we excel. Offering a short-term and attractive facility which can be applied extensively to a variety of purposes, Enness are a professional firm with an exceptional reputation and ability to understand your specific circumstances and requirements.
Whatever outdated presumptions you may have heard before, the recent financial climate has proven the advantages of such a solution, with cheap bridging finance for high net worth mortgages now readily available.
Using every option at our disposal and combining your assets with our unrivalled experience and connections, we will ensure the best financial solution for your situation, to ensure you never miss out on a key opportunity.
If you have any questions about your own circumstances and how bridging finance may help you with your high net worth mortgage, feel free to contact us for a consultation or read our latest guide.