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”.
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