Larger lending increasing

Larger bridging loans can be a particularly sophisticated area of the market, which has been increasing in demand over recent years. More investors are seeing the huge benefits of this type of loan and, as a result, lenders are adapting to facilitate such funding needs.

Classifications of large bridging loans vary significantly from lender to lender. Years gone by a larger loan was typically regarded as any amount in excess of £1m, but these days, given the market we would now define a large bridging facility anything upwards of £3m.

The continued rise in house prices, combined with lenders increasing appetite to lend on larger deals, means the average loan size has increased over recent years. In premium property markets such as London and the South East, what would have been deemed as a large loan 10 years ago is very much the norm these days.

The typical clientele for larger bridging comprises of developers and property professionals rather than the consumer. However, recently we are seeing the average consumer make more enquiries as bridging is so flexible and fast to complete.

As a result of the increased activity brokers have a much wider choice of lenders offering various deals. Rates are without doubt an important factor when choosing a loan, but careful selection should be given to the lender used as not all can cope with larger scale lending.

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As we said this is a very sophisticated area of lending, we have fully trained advisers to assist you in making the correct choice for your deal and we look forward to being of assistance to you.