Consumers are being discouraged from taking out bridging loans, one publication has noted.
Banks are refusing home loans to consumers and instead telling them to sell their properties first.
A piece in the Daily Telegraph by Andrew Carswell quoted a mortgage industry expert as saying it is now very hard to get a home loan to bridge finance - which gave people the capital to buy a new property as they were waiting to sell their own - because it is not worth it for the banks.
"Effectively it becomes like a second mortgage on the first property and banks just don't like increasing the amount of money they lend because they have no security to attach that extra money to," the expert added.
But those looking for this service may want to give HSBC - which recently announced a demand for its
Aussie credit was up five per cent - a try after Alice Del Vecchio, head of mortgages for the bank, noted its new product is the most competitive in Australia.
By Joe Letts
