The importance of the exit in bridging finance cannot be overstated. It is fundamental to the success of an application and needs to be monitored for viability purposes throughout the course of the project – especially in the current economic climate.
We have written in the past about the need for contingencies but it’s worth reiterating the message that brokers must ensure their clients possess several exit strategies for their bridging loan cases. The deteriorating economic climate and decelerating property market have rendered 'plan A' less reliable, making it crucial to establish 'plan B' and even 'plan C.'
From our experience at London Credit, we believe that the property investment market is still buoyant. With new home purchases relatively low, the private rented sector is standing firm.