Take a look at the infographic below to see the trends that shaped the bridging finance market in Q2 2021

Key Points:

Bridging loan market continues to stabilise

Funding an investment purchase returns as most popular use

First charges up as buyers rush to complete purchases

Average processing times hit two-year low

Chris Whitney, Head of Specialist Lending at Enness, comments:

“It looks like we have reached quite a stable platform over the last two quarters. Any previous Pandemic worries seem to have been put to one side with the SDLT holiday deadline creating a frenzy of activity. The higher level of investment purchases shows confidence in the UK property market is strong.

“I am slightly surprised that lending volumes weren’t higher. The market certainly felt very busy as we struggled to get valuers out in a timely manner due to volumes and many a solicitor was having to burn the midnight oil to keep up with demand.

“Nice to see the time it takes to draw a loan heading in the right direction albeit was that again SDLT deadline linked? It will be interesting to see where that is at in the next quarter.”

Matthew Corker, Operations Director at Knowledge Bank comments:

“We’ve seen a dramatic rise in searches across our bridging section throughout this quarter. ‘Regulated Bridging’ has consistently appeared as one of the most searched terms on our system throughout 2021, holding the top spot in April, May and June, likely due to buyers wanting to secure their onward purchase before the end of the stamp duty holiday.

 “Interestingly, we’ve also seen a general rise in search numbers in more traditional bridging categories, suggesting that the usual summer lull may not be as pronounced this year.”

Gareth Lewis, commercial director at MT Finance comments:

“As purchases would have been at the top of people’s minds due to the stamp duty saving it’s no surprise to see that first charge lending has significantly increase its share of transactional volumes. It will be interesting to see if this percentage decreases in the coming months as consumers look to raise finance out of existing properties to fund further property acquisitions or businesses.”