Take a look at the latest infographic to discover the general trends that shaped the UK bridging finance market during Q3 2024.
Key Points:
Contributor gross lending up 9%
Investment purchase was the most popular use of bridging
Demand for reg and unreg refinance jumps
Director’s comments
Chris Oatway, Chief Executive Officer at LDN Finance comments:
“Over the last quarter, we’ve seen a notable improvement in the bridging finance sector, with the average completion time reducing significantly, signalling a more efficient market all round. Additionally, lending volumes have increased by 10%, with a marked rise in investors using bridging finance for new acquisitions. With bridging finance usage rising, particularly among investors looking to seize new opportunities, there’s a growing sense of optimism. Looking ahead to Q4 2024, we expect continued momentum, with further growth in lending activity as confidence in the market strengthens. With the easing of economic pressures and a stable property environment, we anticipate more investors leveraging bridging finance to secure profitable opportunities, suggesting that the market will continue to improve as we close out the year.”
Shane Chawatama at Knowledge Bank comments:
“Over the last quarter, bridging demand has remained exceptionally popular. The top three searches on Knowledge Bank continuing the trend we have seen this year. Regulated Bridging, Minimum Loan Amount, and Maximum LTV have held steady. While these 3 criteria continue to dominate, we’ve also seen increased interest in 2nd Charge Bridging and Adverse Credit, underscoring the market’s focus on flexible bridging options, amid the ongoing economic uncertainty continues for customers. Bridging searches have grown consistently over the last two years, and with housing stock challenges remaining in the residential market, we expect demand for creative funding solutions in property improvements and value-adding projects to stay high.”
Gareth Lewis, Managing Director at MT Finance comments:
“The reduction in completion times to a five-year low demonstrates a considered approach from all facets of the market to improve operational efficiency. This is particularly noteworthy given that we typically see the market soften slightly during the summer months. Instead, we’ve witnessed increased lending volumes and faster turnaround times, indicating a more streamlined process from all parties involved in the bridging transaction chain. The rise in investment purchases to 24% of total lending suggests growing confidence among property investors, who are actively seeking opportunities in the current market. These figures paint a picture of a robust and efficient bridging finance sector that continues to meet the evolving needs of borrowers,”