The utility of specialist finance – time to think outside the box

It amazes me sometimes. Wherever you look in the market, there tends to always be a need for, or way to utilise specialist finance. I want to stress this point. I don’t want bridging to just be viewed as a singular option, for a singular purchase. Our wares should be considered more rounded products that can be incorporated into multiple investment plans.

Bespoke finance, just as is the case with other financial products, should only be used when it fits in with a borrower’s circumstances. But, there are plenty of circumstances in which bridging could be particularly useful.

Just look at some recent news stories for an example. Baby boomers, warns The Telegraph, may lose much of their property wealth to an inheritance tax driven fire sale. As families face up against unaffordable inheritance tax bills, homes will have to be sold to cover what’s owed.

There’s a couple of ways in which bespoke finance can be helpful here. Our funding can be used to cover an inheritance tax bill quickly, before it has a chance to upend an estate. Or, should investors want to take advantage of properties coming to market as owners attempt to cover or avoid tax burdens, our acquisition loans are there.

Ditto with rental opportunities. As landlords sell up to avoid costs and legislative changes, we can help expanding BTL investors take advantage of rising supply.

Speaking of rising supply, we’re seeing an exhilarating “Yimby” movement emerge in the UK. Frustration with our general lack of suitable housing options is reaching boiling point, and campaigners across the political spectrum are pushing for more building. If developers are encouraged to get their plans off the ground over the coming months, development exit finance is at the ready to make sure projects are completed swiftly and smoothly.

None of these concerns are confined to the South East anymore either. Property demand is hotting up, and causing friction more evenly across the UK. This may be best illustrated through gazumping trends. From our latest report:

“Gazumping has become more widespread. While the practice is still common in the Greater London area, England’s capital is no longer the capital for gazumping.

Some 53% of buyers in Greater London said they were gazumped by a rival bidder, according to our 2024 survey. This was down from 62% in 2022.

In fact, the West Midlands had the highest proportion of gazumped buyers, fractionally ahead of London. Across most of England and Wales, the prevalence of gazumping rose between 2022 and 2024. Some of the biggest rises occurred in the West Midlands (32% in 2022, 53% in 2024), and the North West (27% to 43%).”

It’s a good job our funding can be used for all regions in England and Wales.

We can also provide a tonic for the state of the economy. Defaults are on the rise, small businesses are struggling to access capital, and chain-breaks are widespread. All of this, and more, bridging is primed for.

I’m trying to get this through to my brokers. Yes, specialist finance is there for property purchases. But MFS can help with refinancing, providing cashflow for businesses, transferring assets from an individual to a company, etc.

We’re only scratching the surface of specialist finance utility here. Call me to find out how else I may be able to help your clients.? ?