No deal Brexit could push up bridging rates
If there is a no deal Brexit bridging rates could become more expensive, Trevor Williams, professor at Derby University and independent economic consultant has predicted.
He also forecast that prices could drop by between 10-12% without government policy changes.
Williams said: “Bridging loans could become more expensive – as the risk is greater they [lenders] are likely to want better returns for it.”
He predicted a tougher environment for investors.
He added: “Most people trying to sell could see a sharp drop in prices offered; below what they were expecting.
“If they had financial commitments on the basis of those properties being sold they are going to be caught short.
“For those who don’t have overdraft facilities already in place they may have a cause to use them because they can’t sell their properties.
“If you haven’t got an overdraft facility you may need to from your established lender, or go to a bridger to cover in the short-term.
“There may be more claims for those with insurance against rent.”