Bridging Finance – 40% increase in lending year on year

Bridging LoansThe Association of Short Term Lenders (ASTL) has reported a large increase in both the numbers of loans approved and the total amount lent. ASTL members lent £390 million worth of loans in the last quarter, an increase from £292 million in the previous quarter. Short term finance continues to grow for a number of reasons, most noticeable to Harvey Bowes is the continued need for flexible and short term lending to property investors. This is because confidence is returning to the market and investors are looking at innovative ways to make planning gains or undertake refurbishments and title splits. Meanwhile the main stream lenders, although increasing lending volumes, demonstrate no appetite for the funding needs of these investors.

At Harvey Bowes, we have experienced a three fold increase in the amount of Bridging Loans placed with the Bridging Lenders along with seeing greater competition between the main players, which in turn has lead to more competitive deals being negotiated. “Our most recent bridging finance deals have been placed with Bridgebank Capital, Heritage, Precise and Auction Finance” comments Howard Bowes, Managing Director of Harvey Bowes Limited. He continues “we have seen an increase in demand, but also a willingness to meet this demand from the Bridging Lenders. From relatively simple Bridging requirements, such as refurbishment deals, right through to complicated title-splits and unusual property types, Bridging Lenders are offering funding to wide range of proposals and the rates being offered are becoming more competitive. What the Lender wants to see is a robust plan to exit the loan – provided the proposal has a clear exit route and offers reasonable security there are excellent solutions out there. It is down to using the right broker to secure those deals. While bridging is increasing in demand, it is not something every mortgage or finance broker is fully conversant with. At Harvey Bowes, the team is totally confident in what we can deliver. The right proposal, written in the right way will help to negotiate the most favourable terms.”

To find out more how the team at Harvey Bowes can help with your bridging requirements, contact us today on 029 2067 6716

ANY PROPERTY USED AS SECURITY MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE    

Advertisements

About harveybowes
Mortgage Broker and founding Director of Harvey Bowes Limited. A mortgage broking practice with bases in Cardiff & Poole, UK. We take a fresh and positive approach to mortgage broking which pays dividends for both our clients and frankly, ourselves. The team at Harvey Bowes are expert advisors in all aspects of mortgages from residential to commercial and buy to let.

One Response to Bridging Finance – 40% increase in lending year on year

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

%d bloggers like this: