Long term potential

The famous quote “never had it so good” that former Prime Minister Harold Macmillan once said could be used for describing bridging finance 60 years on.

Recent competition among short-term finance providers means headline rates now start at below 0.6%, as lenders fight for the market share. The industry has never seen such sharp competition and rates realistically cannot sink much lower.

It’s not just the competitive rates that stand bridging borrowers in such good stead: lenders have matured and learnt during the industries rapid rise. Figures released show bridging lending grew last year by over 28% in real terms and this year the figures are likely to impress. Loan sizes also increased last year, the good thing was that the loan-to-value remained constant giving the borrower more protection. All these figures clearly show bridging is in a very strong position and the future is looking very positive indeed.

The most important factor for those clients looking to access capital when speed is of the essence is certainty of funds. The major high street banks can be so slow to react and assess cases – if they even have the appetite to lend in the first place. Bridging lenders have been very quick to notice this and have exploited the banks lethargic attitude to their benefit.

Consumers have benefited with a combination of attractive innovative products and vastly improved standards of customer service.

Help required?

If you would like to know more about bridging finance and how it could assist you please do contact one of our fully qualified advisers.