Whilst traditionally, bridging lending has been associated with property acquisitions, an increasing number of people are turning to bridging as a way of managing other short-term solvency issues. Bridging Finance Solutions are seeing an increasing number of customers using bridging to raise immediate cash flow, using property as security for the funds.
Jeanette Gwatkin of BFS discusses how and why a bridge is the perfect solutions to resolve disputes with HMRC: “When financial demands from HMRC are given, they often come with imminent deadlines or stiff penalties. People are often forced to try to pull funds together quickly, disposing of assets including property, often at value far lower than market value. Clients (and brokers) are becoming more in tune with how bridging works and are using the traditional property model and applying that to access finance fast.”
Working with a North Wales based broker, BFS recently secured a £100,000 loan for Mr Hughes who was found to owe HMRC the sum.
By working with Bridging Finance Solutions and the broker, Mr Hughes was able to use the equity within his home and repay the sum in its entirety to HMRC.
A representative of the broker said: “By using a bridge, Mr Hughes now has the time and space to arrange long term funding allowing him to access the best mortgage possible over the long term. It also means that he isn’t forced into a ‘fire’ sale in his primary residence which may result in a lower value.
“The funds were secured within 15 working days and the debt repaid. Mr Hughes was extremely happy with the way in which we worked together to ensure the deal was done quickly and effectively..”