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Rate War

Bridging rate war

The rate war is in full swing within the bridging finance industry which is great news for the borrower. Financial experts were predicting in January that rates had hit rock bottom but surprisingly they have reduced even more since then. Lenders are battling each other to secure new deals as short term bridging goes from strength to strength.

Over the last 12 months the industry has seen a raft of new quality lenders entering the market with funds aplenty. It’s inevitable that the increased number of lenders will drive down interest rates to an all-time low. As a result of all the competition it is now an everyday occurrence to see rates as low as 0.70% per month. Just 2 years ago these sorts of rates were just not available, in fact unheard of.

Bridging lenders are always looking for quality new business and the best rates are always reserved for the low loan to value (LTV) deals. If as a borrower you are looking to secure a loan at less than 70% LTV you will be in a very strong negotiating position. Lenders regard deals of less than 70% LTV as very attractive propositions and far less risk, therefore attracting low interest rates.

Speed of completion

The whole point of a bridging loan is to complete the deal as quickly as possible as often funds are required urgently. We are happy to report here at Fastest Bridging the last 3 months has seen very good completion times especially on the low LTV deals. The last 3 months has been hectic, largely due to landlords increasing their portfolios to beat the new increased stamp duty charges levied by the Government. Over this period the average deal completed in just 9 days showing how lenders have improved turnaround times.

Need help?

If you would like to know how bridging could assist you please do make contact and one of our professional adviser will be happy to assist.

In Demand

Bridging Boom

The fast growing demand for bridging loans is the result of a range of factors. Consumers and property developer’s confidence is high as new properties become the top priority for the individual and professional investor. With house prices constantly on the rise the need for quick and accessible finance is clear.

Bridging finance enables people to achieve things which otherwise just simply would not be happen. The loans may well be slightly more expensive but the cost is justifiable as the deal can be completed quickly and efficiently which enables the investor to move forward.

In some cases it is the only way to get a new project up and running, bridging has become particularly popular with developers wanting to capitalise on new opportunities.

High Street lending facilities such as banks and building societies cannot compete when it comes to fast lending. A straight forward bridging loan can be completed in a matter of days which is just not possible with other lenders.

As the demand for this type of funding grows a cluster of quality new lenders have come into the market place, thus making funding even more accessible.

Bridging finance is growing faster than any other form of lending in the UK and experts are predicting this to continue for some time to come. The market has responded well to this increased demand with new innovative products to meet the majority of consumer needs.

Can we help?

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

Self-Employed ?

Bridging and the self-employed

The self-employed numbers are increasing year on year within the UK and the trend is likely to continue as the job market shrinks.

This increasing sector of the UK workforce is the most in need of specialist lending and its little wonder bridging is used on a regular basis. Bridging finance is going from strength to strength and figures show the self-employed used this facility more in 2015 than any other year recorded.

High Street lending facilities struggle to help the self-employed and if they have a mind to assist in securing a loan it seems to take forever.

Bridging lenders have picked up on this weakness and produced products to suit almost any situation the self-employed may have. Lenders are reporting over the last three years lending to the self-employed has more than doubled.

All these facts and figures basically apply not only to the self-employed but pretty much anybody who is not in standard employment. Regular Banks and Building Societies seem to class this category of the work force as “too difficult” thus the need for specialist lenders.

Why bridging?

There are many reasons for selecting bridging finance some of which are listed below.

  1. Fast completion
  2. No proof of income required
  3. Vast array of uses
  4. Cost effective interest rates
  5. Various repayment strategies

Like too know more?

If you require assistance in raising finance please do contact one of our fully qualified advisers who will be happy to guide you in the right direction.