Refinancing increased in popularity last year. Many experts believe that the increased awareness and use of refinancing will continue over the next 12 months. We’re going to look into why refinancing has grown and why it’s set to be so popular again this year.
Defining refinancing
Finbri, a renowned UK-based bridging loan broker, reveals that refinancing can help you complete projects, get traditional funds, and sell vital assets. A refinancing loan can be your new source of funds to pay off past debts and it’s especially popular with those facing initial loan term expiry before selling or accessing extended finance.
Refinancing’s recent rise
The COVID-19 pandemic and Brexit are two of the main causes responsible for refinancing’s recent nationwide boom. There is no denying how much these two factors have affected the UK in a short period. The nation has seen major changes in significant areas such as trade and immigration. In addition, coronavirus and Brexit have impacted project deadlines throughout the UK. Refinancing can lighten your burdens and achieve completion without financial penalty.
It’s unfair to focus purely on the pandemic and Brexit for the extended construction time frames countrywide. Inadequate labour and issues with material supply also have a hand in longer construction time frames, pushing countless projects past their initial cost and time estimates. It’s can be financial troublesome to navigate delayed projects, so several developers have explored and taken out refinance loans for assistance.
Every developer feels the effects of Brexit and the pandemic, and whilst more established ones may cope better because they can access robust supply chain, smaller developers don’t enjoy this luxury, so they face huge difficulties and are likely to require funds even quicker. Fortunately, these smaller businesses can turn to refinancing loans to get the funds they need quickly.
Although the pandemic’s effects seem to be less intense, the issues mentioned continue to remain persistent. As such, refinancing will likely remain popular since it can be utilised to navigate these challenging times.
Final Thoughts
Experts suggest consulting a bridging loan broker if you are thinking about refinancing to get the most out of your investment. Also, it is undoubtedly a good idea to refinance during these times, but be sure to weigh the pros and cons first to determine whether it is truly the best course of action for you to take. Your broker can assist you in considering the various advantages and disadvantages, so always consult one before starting the entire process.
