ICS revives bridging loans ‘to ease bottleneck’ in second-hand home market

ICS Mortgages has launched a bridging loan solution, heralding a return of a short-term lending product that vanished across the Irish market in the wake of the crash.
The brand, owned by nonbank Dilosk, says that bridging finance should help increase transactions in a market where there is a dearth of properties for sale by making it easier for individuals to trade up or down.
ICS says it will offer bridging finance with terms of up to 18 months, allowing borrowers to transition into a regular mortgage facility if desired. Designed to support individuals and families in smoothly transitioning between homes, this product is also ideal for property investors seeking quick financing for auction purchases and renovations on buy-to-let properties, it said.
More than two-thirds of people in the Republic live in homes that had more rooms than needed, with many who want to downsize later in life struggling with a lack of options, the Economic and Social Research (ESRI) said in a report earlier this year.
ICS highlighted that there were only 12,495 second-hand properties listed for sale in Ireland in August 2024 – representing just 0.6 per cent of the housing stock, compared to the 3-4 per cent typically seen in a healthy market.
“Our introduction of bridging finance is a game-changer for the Irish housing market,” said Ray McMahon, chief commercial officer at ICS Mortgages. “This product will improve liquidity in the Irish housing market and provides greater confidence for those looking to downsize.”
“This product will help unlock the potential of the second-hand housing market, making it easier for people to transition between homes and for investors to bring more refurbished properties to the rental market.”
ICS Mortgages said it mortgage brokers and estate agents have reported strong demand for bridging products. It said the product will ease the bottleneck in the second-hand housing market, facilitating smoother transitions for those looking to change homes and contributing to a more dynamic and accessible property market.