Rise in demand for bridging loans22 May 2017
There has been an increase in the number of bridging loans issued in the first quarter of 2017, according to the latest Broker Sentiment Survey.
The increase was quite considerable, with 59% of brokers seeing a rise in bridging loans, which compares with 31% in the last quarter of 2016.
The largest rise in demand for bridging loans was in the south-east, while the second largest rise was in London, with a 30% increase.
30% of bridging loans issued were to fund a development project, while 20% were to help fund the purchase of a buy-to-let property.
Meanwhile, nearly half the number of brokers surveyed said that competition was the main issue facing the bridging finance sector.
Head of New Business at MT Finance, James Anderson, said: “The feedback from brokers points to a strong need for specialist lending, particularly from developers who continue to support the housing market by providing further supply to meet the ever-constant demand.”
A bridging loan is a short-term loan which allows property investors to ‘bridge’ the gap between the sale of an existing property and acquiring a new property.
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