Aldermore pulls out of bridging market

Aldermore pulls out of bridging market




Challenger bank Aldermore is to pull out of the bridging market just over two years after launching the offering.

Bridging & Commercial can confirm that Aldermore will no longer be accepting bridging applications as of 1st September 2016.

The move comes as a result of the lender changing its focus on its core mortgage areas, including buy-to-let, residential, commercial and property development. 

While no new bridging business will be accepted from September, all pipeline cases up to and including 31st August 2016 will be honoured. 

Aldermore will also continue to service all existing loans as normal. 

The news from Aldermore comes just four months after the bank expanded its bridging product range into Scotland

The decision also comes two months after the EU referendum result, the implications of which was the biggest threat to specialist lending according to a recent poll by Bridging & Commercial.

Since the UK voted Brexit, a number of bridging lenders have changed their lending criteria and £2.8bn of investor money was withdrawn from equity funds – with £1.4bn pulled from property funds.  

Some firms have also been rumoured to have lost their funding lines, while others have secured new facilities

This month, The Association of Short Term Lenders announced that bridging loan applications had surged by a colossal 61.5% in Q2, valued at a total £3.5bn. 

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