In fact, we’ve kicked off the new year by enhancing our bridging product range with the introduction of cross-charging, which will enable homeowners to leverage any equity in their current property.   

Customers will now have the ability to secure finance against two properties, with a remortgage on the new property now an accepted exit strategy, when alongside the sale of the existing property. Proceeds of inheritance and sale of property also remain accepted repayment strategies.

•   Together enhances regulated bridging range with cross-charging
•   Working Together in 2016
•   Together funds £1m regulated bridge in under a week

The main benefit of the new cross-charge product is that it will allow customers to take advantage of their equity across two properties, which will, in turn, allow them to borrow a larger sum that they could with a single property, or via a traditional mortgage. 

The most likely use of cross-charging is a customer who is looking to upsize, since they may not have sufficient equity in their current home to put down a deposit or purchase a more expensive property – particularly if the new property is a significant step up. 

Brokers can use this product for customers where the advised sales process has indicated that a bridging product is the best option. Only accredited brokers are able to sell this product. However, here at Together, following a successful pilot scheme last year, we’ve recently expanded our network of brokers and packagers selling our regulated bridging product range, and the activity to date suggests a very positive outlook in this area.

As the property market stands, with demand outstripping supply, those looking to purchase a property often find themselves in a position where they need to act fast to secure their dream home, and it’s often the case that they need funds faster than a mainstream lender may typically provide. This is where bridging finance can provide a fast and flexible solution.

Broken property chains are also a major use of bridging finance, according to industry data, and since neither of these issues are likely to change dramatically this year, we would predict a clear, continuing need for bridging finance in 2017. 

There needs to be a variety of bridging loans in the specialist lending arena to cater for different customer needs, providing plenty of choice for both customers and brokers.