According to Bridging Finance Limited, last minute snags and delays on residential property deals are driving an increase in the number of homebuyers using bridging loans.

Experts have reported a rise in the number of homeowners using short term finance to break lengthy chains caused by last minute demands from purchasers holding up the process. The Royal Institution of Chartered Surveyors (RICS) said that the stock of unsold property on estate agents’ books jumped more than 8% in February – a fifth successive monthly rise – reflecting declining sales and waning interest from new buyers.

Talk of a downturn in the housing market means buyers are driving a harder bargain and demanding last minute reductions and additional items to be included in the price.

Chris Baguley, managing director of Bridging Finance Limited, said: “The number of people who have already found their dream property but are getting held up by the sale of their existing home is soaring. Last minute snags mean that estate agents and buyers are turning to short term funding providers to ensure their deal completes quickly and they don’t lose their dream property.

“The growing trend for buying at auction is also having an impact. Many high street banks simply can’t turn the funds around quickly enough to enable people to snap up a bargain at a property auction.”