According to Lee Tillock, editor of Moneyfacts, bridging finance is set to play an even more important role in the housing market as buyers can take advantage of repossession bargains at auction.

The repossession crisis has spiralled, with many predicting that it will be worse that 1992. Research from AXA has said that as many as 1.8million buyers will be struggling to cover monthly repayments by the end of this year.

The number of properties put to auction is also higher than predicted, as in the current market lenders are struggling to re-sell repossessed properties and are selling them for reduced price at auction to regain their money as quickly as possible. For bridging, this is ideal as consumers can snap up bargains at auction and complete within weeks which wouldn’t be viable with a conventional mortgage. For brokers who have branched into bridging, this avenue is one they should promote to clients as auctioned properties are on the rise and bridging is the most logical way to buy.

Lucy Trueick