For many property buyers, their worst nightmare is the sale not completing. Fortunately, there are steps to take to minimise the risks of a property sale falling through.
New figures have revealed that 38.8% of property sales fell through before completion in the first quarter of 2018, and an increase of 4% compared to the same period of 2017, and 18% higher than
five years ago.
The 2017 Market Financial Solutions survey found that most sales fall through due to funds not being available in time. Having access to capital is a key factor, but unfortunately, mortgages can take a long time to complete. There can be delays due to legal complications and other factors. At other times, mortgage funds are not available because a buyer’s sale of their existing home is stuck in a house buying chain or their buyer has pulled out of the deal.
Whether you are purchasing property to live in, or for an investment, it is important to have an alternate plan in case of funds being unavailable on the completion date. The most common alternative finance solution is bridging finance.
Many investors will have an existing relationship with a bridging loan broker, so will know that they are eligible for a bridging loan if they need one. For people that have never used bridging finance, it may help to seek financial advice on whether their property purchase and their personal financial circumstances qualifies them for a bridging loan.