Bridging can resolve the stamp duty land tax (SDTL) holiday rush, according to Clever Lending.
Clever Lending is encouraging brokers to consider 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 deadline.
Paul Day, director of business development at Clever Lending, said: “The property market has been extremely buoyant over the past six months, with people taking advantage of the government’s SDLT break.
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“Although we do not 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.”
The specialist lending distributor believes regulated bridges are a short-term solution to make sure delayed transactions are complete, and new purchases can be made in time for stamp duty holiday conclusion.
Day added: “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. A bridge could even help the property chain move and achieve the deadline, with the exit being a traditional mortgage.”