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On Fire

Bridging market is on fire The bridging market is booming as borrowers continue to utilise the flexibility this form of lending offers. The Association of Short Term Lenders says its members are writing in excess of £2.5bn worth of lending per year. The true size of the regulated sector currently stands at over £4bn and if you included un-regulated companies it would be even higher. In 2007 when the so called credit crunch hit, bridging was a minnow in mortgage terms with most experts estimating annual lending of less than £1bn. The dearth of bank lending left many borrowers crying out for finance and this is when bridging stepped in to fill the void. Since this time bridging finance has gone from strength to strength with lenders responding brilliantly to the borrower’s needs. Currently, the Council of Mortgage lenders estimates bridging loans represent more than 2% of total mortgage lending in the UK. Strong growth indeed and they are estimating this will increase again in 2016 as high street lenders struggle to compete. With all this rapid growth one problem has arisen, that being new lenders are hitting the market place and not having the backup required to perform at a high level. When selecting your lender it is vital to ensure the company can cope with your requirements. This is when the value of a broker comes into force as they will have the experience required to select the correct company for your loan. A survey of active clients shows that speed of completion to be the most important factor but ease of application comes a very close second. One client stated “From start to finish the deal was completed in less than 10 days”. “I would most certainly turn to this form of financing in the future as it is stress free and flexible”. Need some help? If you need assistance or want to talk over a proposed deal you may be contemplating please call one of our fully trained advisers who will be happy to assist.

It is Vital !

Vital role in financing

Bridging finance plays a vital role in the private and commercial markets of lending and has a very important part to play in the future. This form of funding offers speed and flexibility which high street lenders simply cannot compete with, thus keeps business running smoothly. Borrowers over the last 2 years have grown in confidence and are using bridging finance for many different uses. The costs of this form of lending have reduced significantly over the past few years, therefore making bridging far more competitive and practical than in the past.

The bridging sector has changed dramatically for the better over the past 5 years as lenders have seen the gap in the market for this type of loan. No longer is bridging seen as a last option and is now a very serious player in the short term lending market.

The industry’s huge growth over the last few years proves investors have become aware of the ways bridging can help their business grow. As said before this type of loan is so fast, a clean cut case can be completed in just days rather than weeks which always help’s a deal complete.

Lenders are keen to build on the continued success. More product variations are hitting the market place all the time offering a much wider scope than years gone by. These are very good times for the bridging sector, the industry has responded well and the future looks very positive indeed.

Like to know more

With the industry moving forward so quickly it is advisable to ask the professionals what is available to suit your needs. The options these days are vast and a good choice now could assist you or your business in a positively financial way. If you require any help choosing your next loan please do contact one of our experienced advisers who will be happy to assist.

Marching On

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.