ICS Mortgages, a subsidiary of nonbank Dilosk, has introduced a short-term lending product known as bridging finance, which had earlier disappeared from the Irish market due to the financial crisis. The bridging loan solution aims to boost transactions in a market characterised by a shortage of properties for sale, simplifying the process for people to buy or sell houses.
The company will provide bridging finance for up to 18 months, giving borrowers the option to switch to a regular mortgage if they wish to. The product is designed to make the transition between homes more seamless for individuals and families. It is also beneficial for property investors in need of swift finance for buying properties at auction or carrying out enhancements on buy-to-let properties.
According to a recent report by the Economic and Social Research (ESRI), over two-thirds of residents in the Republic inhabit homes with excess rooms than needed. The same report indicates that there exists a scarcity of options for those looking to downsize in their later years.
ICS Mortgages pointed out that in August 2024, merely 12,495 pre-owned properties were up for sale in Ireland— a mere 0.6% of total housing, contrasting to the 3-4% usually observed in a stable market.
Ray McMahon, chief commercial officer at ICS Mortgages, stated, “The launch of bridging finance is a key turning point for the Irish property market. It will instil confidence and boost liquidity in the housing sector, especially for those seeking to downsize.”
This product paves the way for the potential of the second-hand housing market, facilitating easier transitions and allowing investors to bring more refurbished properties onto the rental market.
Mortgage brokers and estate agents associated with ICS Mortgages have reported a significant demand for bridging products. The company stated that this product would alleviate the congestion in the second-hand housing market, enabling smoother transitions for those looking to switch homes and fostering a vibrant and accessible property market.