Why is faster Bridging more important than ever?

    Tom Cantor - Head of Bridging Finance

How can faster bridging be achieved and why is it needed? With greater market stability, comes greater investor confidence, competition and a property market that will evolve quickly, which may leave those looking to invest with shorter timescales to maximise yields and opportunities.

With many investors having to adapt to a higher interest rate environment over the past two years, we are now facing the prospect of regular reductions in the Bank of England base rate, which may bring investors back to the table with an appetite to transact quickly. 

When there is a need for speed for those transactions which may be time-sensitive, bridging can provide a solution. With industry average completion times of 58 days*, West One average 27 days, and now with a proposition that allows for completions in 1-week.

Unregulated bridging typically requires a faster completion time, with investors looking to secure assets to generate a return. More 'traditional' forms of financing may take too long, resulting in potential missed opportunities, longer completion times or drawn out or lost income. Being able to transact with faster bridging can provide a competitive edge for investors as they seek to receive funds faster, without being locked in for years in the form of longer-term financial options.

Having to wait to complete a purchase can be frustrating, so being able to complete in days will be attractive for many. Bridging by its nature aims to provide funds quickly with a deal of flexibility.

People-focused -Technology-enabled bridging loans. The 1-week bridging solution from West One allows for faster completion times, achieved with a blend of people and technology. Utilising the experience of steam to understand the requirements of the market assess the challenges and being able to provide in-house dual representation from solicitors to ease the legal process.

The expertise and experience are aided by processes where the team can be supported by AVMs to support the process and increase the speed of which cases can be completed. Improving efficiencies allows for a shorter timescale on decision-making, and faster solutions can also enhance the experience of the borrower. Understanding the process, and reassurance of an experienced dependable bridging lender can improve the transaction process from a borrower's perspective.

With a reported 49% of loans in Q1, 2024 recorded as unregulated, this is down from the previous quarter by 6%. This compares with the rise of regulated bridging and in particular the need for bridging to repair chain breaks. Preventing chain breaks was the second highest reason of acquiring a bridging loan in Q1.

When time and speed are imperative, the smallest delay can be frustrating, add finance, and personal interest and you potentially create a complicated and volatile situation. Using skill, technology, and an experienced team, West One has developed a 1-week bridging proposition to support those investors who need and want to complete in a shorter timeframe so they can move to the next step of their plans.

Embracing a faster bridging solution with West One can be key for borrowers as they seek their next investment at a time when we may see greater competition for investments as the wider market should begin to see stability and more investment. 

 *Bridging Trends Q1, 2024.