By Jaxon StevensSales Director, Tuscan Capital Limited.

The property market has started the year on the front foot. Many of the brokers we speak with are reporting healthy interest levels from buyers of all kinds, and that's certainly true of our experience in 2024 so far. 

It's hugely encouraging there is clearly an appetite for deals among property investors. 

Property prices are more attractive today than they were a year ago. which has obviously boosted the confidence of investors, but so too has the fact there is not quite the level of competition from other potential buyers, which would drive up the purchase price further. 

This situation means investors are well placed to negotiate a keener price, with a property which they can then hold as a buy-to-let - certainly not a bad idea given the strength of rental growth at the moment - or move it for a profit after carrying out some refurbishment work to make it more attractive. 

One trend we have seen at Tuscan has been the move from landlords and investors to diversify their portfolios, moving to add different types of assets in order to ensure the best possible returns. 

And that is driving a greater interest in short-term lending. Bridging loans really come into their own when investors need to move quickly on a property that needs a little work, for example, one picked up at auction, or a conversion such as adapting a single dwelling into a house in multiple occupation (HMO). 

Support that makes a difference
While there is a clear need for these products, there are some intermediaries who view bridging loans with a little trepidation.

It’s undoubtedly true there are a whole host of regulated mortgage advisers who have never placed a bridging loan, perhaps because they aren’t entirely clear how it works and the perceived complications.

Despite this, they will have clients for whom a bridging loan represents a terrific option. What’s more, with Consumer Duty becoming an ever more crucial consideration for advisers, having bridging loans within the toolkit is ever more vital.

Working with the right lenders can help demystify these products. Brokers don’t have to go it alone, but can instead work with businesses who understand these cases are not a regular event for the adviser and the greater levels of support needed.

At Tuscan, we have spent a lot of time getting our team structure right, so there is adequate support for brokers who may not be experienced with bridging at every stage. We have a client services team in place, who work alongside our regional directors and can help explain and walk you through the process.

Leaving advisers to try to work out bridging loans alone is never going to be the optimal way of working; it’s far better for lenders to put measures in place to ensure that whether the adviser is an old hand with bridging loans or it’s their first time, the process is as smooth as can be.

Delivering speed and leverage
Bridging loans are a useful option for brokers to have at their disposal precisely for their flexibility. Often the investor wants to move quickly, they have a pressing deadline and need to get the funding in place quickly.

At Tuscan, our Fast Track process was designed specifically to support brokers and their clients when speed is of the essence, with the greater use of automated valuation models (AVM) meaning offers can be turned around far more rapidly.

In other cases, it’s all a question of leverage, of how much the lender can provide, and in our case, that’s up to 75 per cent of the open market value, with only the requirement for a short-term valuation in many cases.

Don't miss out on opportunities
The property market is on a much more stable footing today than was the case just a few months ago. Brokers and their clients have not only a wider range of deals from which to choose from, but also more competitively-priced mortgages too, and that stability is providing confidence to would-be buyers of all kinds.

Working closely with lenders who have not only the right processes in place but a strong support structure, can ensure those clients enjoy the smoothest possible experience.

Read the article on Mortgage Solutions.

For more information or to get in touch with the team, please contact us: 

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A range of case studies demonstrating examples of previously completed loans can be found here.


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