Buying a house amid the pandemic has been incredibly competitive in most areas, with demand for properties on the up as people outgrow their lockdown homes and the supply of new-build houses became limited due to delays with material and logistical issues - snapping up a pandemic property means home buyers need to be ahead of the game.  

These property pressures and challenges haven’t been seen since the housing market crash in 2008.  Increasing the demand for homeowner tools such as bridging loans, to ensure the complex housing process actually completes. 

Many estate agents moved to virtual viewings in an effort to try and keep the property chain moving but ‘sale agreed’ deals across the country were proving more and more difficult to finalise with the increasing restrictions, mortgage delays and new financial pressures from furlough.  The need to adopt additional support measures such as bridging loans were all the more important.  

In fact, lenders reported a 65% year-on-year increase in demand for bridging finance between 2020 and 2021, as DIY projects surged and the desire to jump up the property ladder by buying straight from auction became an option for many.*  

A bridging loan supports homeowners who are in the process of buying a new property but need to complete that transaction before the sale of the existing home goes through, an option that could help to ‘bridge’ any temporary financial shortfall – which is on the increase during covid due to ever-changing restrictions and rising case numbers.  

As the name suggests, a secured bridging loan is a type of secured loan that uses an existing asset (such as a property) as security – the equity is the proportion of the property’s value that the homeowner currently owns outright.  How much the homeowner can borrow depends on a number of different factors, such as how much equity is currently in the property, gross income, typical expenses and outgoings, occupation, credit history, other debt obligations. 

Quotezone.co.uk has just announced a partnership with bridging loan and commercial mortgage experts Cornerstone Commercial Finance, live as of January 2022.  Cornerstone Commercial Finance is part of the Cornerstone Finance Group – a hub of financial industry experts offering specialist interlinking services that work together to provide unrivalled service. The Group consists of commercial finance, commercial insurance, wealth, finance and protection. 

Haydn Thomas, Chief Commercial Officer at Cornerstone Commercial Finance, said:  “

We are delighted to be working with the dedicated team at Quotezone. We’ve seen a 50% increase in our bridging volumes despite the pandemic, and these volumes have remained unaffected by the return of stamp duty. 

"Bridging loans currently account for over 30% of the client cases we manage here at Cornerstone Commercial Finance, so our new partnership will provide us with the perfect platform to reach clients looking to bridge the gap between funds." 

Greg Wilson, CEO and Personal Finance Comparison Expert at Quotezone.co.uk comments:

“Moving house is said to be one of the most stressful things you do in life, marry that with a global pandemic that restricts people from leaving their houses and indeed viewing other homes, and you have one of the biggest challenges the housing market has faced in over a decade. 

“Government strategies such as the stamp duty holiday did help ease some pressure, but the fragility of the property chain encouraged many homebuyers to use bridging loans to help guarantee their sales went through. 

“We’ve noticed a gap in the market for support and choice when it comes to bridging loans and commercial mortgages, which is why we’re keen to team up with the experts at Cornerstone who can provide competitive solutions for our customers.”