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14/10/08

Bridging Finance Limited has seen an increase in the number of people seeking short term loans to buy property abroad in countries including Spain, America, Bulgaria and Cyprus.

A recent survey revealed eight million UK citizens now own overseas property with 43% choosing Spain. The number of Brits moving abroad has rocketed by 50% in the last ten years.

Chris Baguley, managing director of Manchester based Bridging Finance Limited, said:

"Britain's miserable weather means more people than ever are buying property abroad, either as an investment or to live in permanently. Difficult market conditions in the UK mean that many are unable to sell their home, but the capital from a bridging loan secured against free equity is often sufficient for them to take advantage of property bargains overseas. A short term loan allows buyers to secure the foreign home they want and gives them breathing space to arrange an appropriate mortgage."

Dani Maxton, founder of Morpheus Investments a property investment company in southern Cyprus, said:

"We've noticed an increase in the number of people buying second homes in Cyprus and using bridging loans as the housing market in the UK continues to slow. Cyprus is increasingly popular with those emigrating away from the UK. The low crime rate, long dry summers and low cost of living, are just a few of the reasons people choose this country.

"Many don't want to sell their homes in the UK to finance property abroad so they are holding tight and taking out short term loans until the market improves."

Colin Guanaria, founding partner of Bonnin Sanso the leading estate agents in Menorca, said:

"Seasoned investors are looking at innovative ways of funding property. We're also seeing a rise in enquiries from first time buyers. The current housing market in Britain is impossible for potential home owners, coupled with the fact that mortgages are becoming rarer, so buyers are looking further afield."

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