Bridging Loan Applications on the Increase

The number of loan applications increased by nearly 19% in the quarter ending September 2014 compared to Q2 ending in June 2014.

There has been a large increase in the value of applications for bridging loans in 2014 compared to 2013.

Owner Occupier Bridging

The increase in the number of owner occupiers taking to bridging lenders for finance is reflected in the number of loans being taken out to refurbish properties. In February of this year 8% of brokers listed purchase & refurbishment as the most popular use for bridging. This figure has now risen to 15% and still on the rise.

Increasingly borrowers are seeking alternative finance when a conventional mortgage cannot be arranged and are taking loans against the value of existing properties.

When should you use bridging loans?

Bridging loans can be used for many reasons, such as property investment, buy-to-let and development of an existing property.

More recently, there has been a growing trend among borrowers to use bridging loans due to high street and private banks taking much longer to process applications for larger home loans.

Many borrowers now are also viewing bridging loans as a simple and effective alternative to mainstream lending.