An industry figure has claimed the current turmoil in the housing market means lenders are unlikely to offer bridging loans which cover the total value of a property.

Melanie Bien, a director of Savills Private Finance, believes brokers will be reluctant to grant bridging finance because the fall in house prices means the risks involved in doing so are very high.

She claims 100 per cent loans are "too risky because of where valuations are at the moment. Lenders are going to be more cautious than ever and borrowers should be as well."

Recently Tiuta launched Underbridge, which is a 100 per cent bridging loan product aimed at properties which have been undervalued by up to 40 per cent, compared to their open market value.

Mortgage brokers and intermediaries may struggle to promote this package as Ms Bien claims: "Now is possibly the worst market in which to have this sort of product".

The loan is designed for properties bought at auctions, homes which have been repossessed or distressed sales from second homeowners.

Source:
http://www.bridgingandcommercial.co.uk