The Rise Continues

Bridging loans have risen in popularity over the last few years. Before the so called credit crunch bridging finance had a rather dubious image and was a last resort option. This outlook has changed significantly over the last few years with banks being very reluctant to lend on speculative property projects. The bridging sector has innovated and now is seen as a perfectly acceptable form of funding for the borrower.

Whilst the industry has never been shy in blowing its own trumpet the latest figures from the trade body demonstrate that there is a great deal of substance behind the PR machine. Brokers up and down the Country reported large increases in business in 2015 with loans being written in excess of £2.3bn. These are big numbers indeed and 2016 shows no sign of slowing.

This rapid growth has seen an injection of new entrants enter the market, together with a wider range of new specialized products to basically fit most needs. One area which is seeing significant increases is the re-bridging loan which is replacing an existing bridge that is about to pass its redemption date.

The vast majority of bridging loans are now used by property professionals, landlords and developers as a flexible option to main stream lending. This type of funding can be put in place without fuss and very quickly to meet the client’s needs which is crucial in this sector of business. For the borrower bridging provides flexibility, and used correctly can assist in generating very profitable returns on the initial investment.

The future for bridging finance seems to be very bright, all those involved, brokers and lenders have seized the opportunity. There was always a huge gap in the market for loans that could be completed quickly and efficiently. Bridging has recognised this and now is filling that gap with high quality cost effective rapid lending.

Find out more

As bridging has progressed more and more flexible products have been launched, if you would like to know more about this type of loan please call one of our fully qualified advisers.