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.