Borrowers turn to bridging

More and more borrowers are turning to bridging loans as mortgage companies tighten controls on borrowing. Figures just released for the last quarter show bridging increasing to homeowners by 27% on the previous quarter, these increases are likely to be down to tighter controls from high street banks and other traditional lenders.

Brokers up and down the country confirm they are also turning to bridging to assist clients in achieving their targets as high street lending becomes more difficult. One broker in Surrey said “Bridging finance is plugging a funding gap which has appeared”. “Borrowers are finding it more difficult to obtain loans from mainstream lenders who are implementing tougher affordability restrictions”.

Some 80% of brokers reported a significant increase in bridging loans in the last quarter and the trend seems to be continuing. Of the brokers surveyed the majority said this increase was due to the inability to secure clients a standard form of high street lending.

Of the brokers survey 100% of them stated they found bridging finance very easy to use and quick to complete. Asked if they would use bridging again in the future the majority said they would without hesitation. The Surrey broker said “We have used bridging in the past and now we are using it on a more regular basis”. “Clients in general are impressed with the efficiency and speed bridging offers”. “Good thing about bridging is we don’t need proof of income or trading histories as the focus of lending is on the property”.

Like too know more?

If you would like to know more about bridging finance and how it could assist you please do get in contact with us and we will be happy to help.