Borrowers are now faced with the realisation that the equity in their properties has been largely eroded and they have nowhere to go.

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Equally, lenders are eager to recommence enforcement action in order to recover funds which have been out for much longer than they would originally have intended — most bridging loans are for between six and nine months not over two years.

What we are now actively dealing with here at Horwich Farrelly is more complex litigation with borrowers looking at more and more obscure ways of challenging the original loan agreement to delay enforcement even longer. 

It is going to be a challenging time for the bridging lenders and they need to take expert legal advice on such matters.