Take a look at the latest infographic to discover the general trends that shaped the UK bridging finance market during Q2 2024.
Key Points:
Preventing a chain break is most popular use of bridging
Average processing times hit three-year low
Demand for auction finance jumps to all-time high
Director’s comments
William Lloyd-Hayward, Group COO & MD at Sirius Finance comments:“The latest Bridging Trends research confirms the continued growth and resilience in this sector of the market, but also the diverse ways in which bridging can be used. We often talk about short-term property finance as a tool for investors who may want to embark on a refurbishment project or buy a property at auction, for example, but the most popular use of bridging this quarter was amongst homebuyers who wanted to save their purchase in a chain break. This is an everyday occurrence that could impact any homebuyer and any broker, and so those brokers who are not familiar with the bridging market should consider partnering with an expert in this area to ensure they are well placed to best serve their clients.”
Andre Bartlett, Director at Capital B Property Finance comments:
“In Q2 2024, I’ve noticed a significant uptick in the bridging loan market. This growth seems to be fuelled by the urgent need to prevent chain breaks in property transactions, especially as the traditional mortgage market faces delays. I’ve seen more people turning to auction finance than ever before, taking advantage of undervalued properties, which is an exciting trend. The faster processing times for these loans make them an attractive option for those needing quick access to funds. Even amid high-interest rates and economic uncertainties, the market is adapting well, with a notable shift towards unregulated loans and a slight decrease in interest rates and loan-to-value ratios. This flexibility and responsiveness highlight the crucial role bridging finance plays in navigating today’s challenging economic landscape.”
Gareth Lewis, Managing Director at MT Finance comments:
“With the property market relatively stagnant in Q2, specialist lending continued to offer a flexible approach to underwriting that further increased bridging’s attractiveness. This can be seen in the fact that this quarter’s contributor gross lending was a record high and is testament to the sector’s versatility. I am encouraged to see the uptick in unregulated lending and am hopeful that this marks a turning point for landlords and investors who have been hit so hard in recent years. That completion time dropped by six days from 58 to 52 indicates how hard everyone is working to get these deals over the line.”