The short-term lending market has grown rapidly over the last few years, with increased capacity and an abundance of new entrants coming in to the sector.
According to figures from the Association of Short Term Lenders, the value of bridging loans increased 26% in the final quarter of last year, compared to the previous quarter. For the year as a whole, the value of loans written in 2016 was 9.4% higher than in 2015. As a result, the sector has become increasingly competitive.
Historically, some brokers have viewed bridging as a last resort but perceptions are changing, which is evident from its rise in popularity, it is now a fundamental part of investors funding strategy.
We believe there are plenty of opportunities available for intermediaries in the short term sector. Most borrowers have a revolving need for short term debt as they move through projects and this can lead to term finance opportunities as the client exits the bridge.
Bridging lending is about relationships and speed of delivery and this is where intermediaries can demonstrate their value to clients.
In addition, the short turnaround time also means that while brokers have an reduced timeframe to get the lending in place, they are subsequently paid quickly which allows them to move on to the next case.
If you are interested in finding out more about our Bridging Finance division and the finding solutions that we provide, please do not hesitate to get in touch.
Find out more about our Bridging Finance and Commercial Mortgages division.
Managing Director of Commercial Mortgages
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