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Bridging lending and sales increase

It is no secret that there has been a big upturn in the property market in the last 3 years. The last 36 months figures from the Bank of England have reported large increases in both lending and property sales.

This has filtered through to bridging finance and commercial lending in a very big way right across the United Kingdom. Reports are showing short term lending is up a massive 58% on this time last year.

The majority of the demand is coming from the developers looking to increase their property portfolios as interest rates are so attractive at present. We have also seen a big increase in demand for redevelopment funding as landlords look to upgrade and improve their properties.

UK property prices are rising daily and many investors see the necessity to act quickly on a purchase, thus securing at an advantageous price. The general feeling among property developers is to secure the deal as fast as possible; of course this is where bridging finance comes into its own.

Mainstream lenders cannot turn a deal around as quickly as the investor would like plus more often than not they won’t even consider this type of lending. High Street lenders see this form of business as far too risky and complicated and therefore they shy away.

Bridging finance is unique as each individual case will be assessed on its individual merits. If it is a “clean case” finance can be advanced in just a few days rather than weeks.

Looking to find out more?

At Fastest Bridging we pride ourselves on the service we provide so if you need any help or guidance please do call us. One of our expert advisers will be on hand to deal with your request.

Gross Increase

Big Increases

Annual gross bridging lending increased by 56% during the first three months of 2016, according to the latest Bridging Trends data.

Data from Bridging Trends confirmed another strong quarter for bridging volumes, with contributor lending reaching £125.35 million in the first quarter of 2016 – an annual increase of 56% (£80.47 million).

Unregulated bridging loans continued to outperform regulated bridging loans, though the number of regulated loans transacted by contributors increased from 35.9% in Q4 2015, to 42.5% in Q1 2016.

For the fourth consecutive quarter, mortgage delays were the most popular reason for accessing a bridging loan, at 48% of all lending in quarter one 2016.

The average completion time on a bridging loan application decreased by 1 day and for the third consecutive quarter, the average term of a bridging loan remained at 10.3 months.

What is a puzzle to the industry is why a mainstream mortgage takes such a long time to complete given that so much of the process is now automated at so many lenders. Whereas a bridging loan which is underwritten individually on a case by case basis can be completed in under10 days if it is a clean cut case.

It is little wonder bridging is becoming more popular as a re-mortgage these days can take up to 3 months to complete. Interest rates on bridging finance have reduced significantly over the last 2 years and are now very cost effective and affordable.

Need some help?

If you would like to know more about bridging and how it could help you please do get in contact with one of our fully qualified advisers.

The Future Is Bright

Bridging has a bright future

Some 57% of brokers working in the fields of bridging, development finance and asset finance have reported a very busy start to 2016. Those asked said bridging finance is clearly the market leader with more and more clients putting faith in bridging loans for business development.

This year has seen a large increase in the bridging market as more borrowers look to secure faster finance for their upcoming projects. Traditional high street lenders just do not have the capacity to compete with specific bridging loan companies for speed and efficiency.

Bridging finance has a vast array of uses and this seems to be growing by the day as lenders become more flexible. One of the key areas this form of lending offers is speed of advancement and this can be as little as 6 days on a “clean case”.

Of the brokers surveyed nearly all of them can see a very bright future ahead for bridging finance. One broker in Kent commented “Bridging has a great deal to offer the borrower these days interest rates are lower and the speed of completion is getting faster all the time”. “We really do see a very bright future ahead for bridging as its fast and flexible”.

With such a wide range of uses it may well pay you to check out just what bridging has to offer if you are looking to raise finance quickly.

Can we help?

If you require assistance for financing an upcoming project please do contact one of our fully qualified advisers who will be happy to help.