According to the latest Bridging Trends report by MT Finance total gross bridging lending increased by 20 per cent to £214.7m in Q3 compared to the previous quarter.
Bridging is a major part of Together’s business, as well as BTL, Commercial and non-standard cases.
What’s on the horizon for bridging finance this year?
“Despite recent economic turbulence, the bridging market has always been – and will continue to be – very resilient as we see more requests for fast, short-term finance. This type of finance will be leaned on to provide certainty of funds for opportunities which may involve additional complexities. One such example of this is down valuations, where bridging can allow an applicant to offer another property as security by way of second charge to find extra funds.
“Landlords and investors alike are still looking for ways to increase their yield. Properties in need of refurbishment continue to be a high priority, as do those which can be turned into a House in Multiple Occupation (HMO), a Multi-Unit Block (MUFB), or extended to add significant square footage.
“We’ll also see investors using bridging finance to convert commercial and semi-commercial properties as more of these buildings become vacant due to businesses and building owners selling up.”
“We’re seeing landlords move away from traditional buy-to-let properties where it’s becoming increasingly difficult to achieve a great yield because of factors such as rising rates and changes to tax, and they will be seeking opportunities across a variety of asset classes and property types.
“Bridging finance can also be advantageous for businesses who need a short-term solution to a cash flow problem, to consolidate good debt, or to seize growth opportunities. We’re definitely seeing an increase in these types of cases at the moment.”
“As bridging is an area of growth, I expect that there will be new entrants appearing in the market – but it is worth remembering that experience and certainty will always go far. Intermediaries come to us because of our near 50-year reputation in the industry for funding case sin a short period of time, and our experienced team who are dedicated to helping packagers find a place for their case so their clients can realise their ambitions.”