Bridging lending nears £3bn
By Tom WrightBridging lending has gone up by 30% to almost £2.8bn over the last 12 months, according to West One Loans…
Bridging lending has gone up by 30% to almost £2.8bn over the last 12 months, according to West One Loans…
The figure is up from £2.1bn in the year ending June 2014 and £2.7bn in the year ending April 2015.
The UK’s bridging industry is continuing to increase despite troubles in the global market and ministers agreeing to give Greece a €7bn bridging loan.
Duncan Kreeger, Director of West One Loans, said: “The rescue plan that is helping Greece isn’t bridging finance as we know it in the UK financial services sector, but there are several similarities that can help people further understand the versatility of bridging loans.”
“While their primary use may still be property, be it buying at auction, development, refurbishment or land purchase, short term finance is also increasingly useful for business purposes, such as liquidity issues and tax liabilities.”
Loan volumes reached record levels in April and May and, although the amount has fallen slightly, are still up 12.6% year-on-year with the average loan at £747,292.
Duncan added: “As the economy improves following the stability the election result provided, so too appetite for bridging loans continues to blossom.”
“As has been the trend for some time, it is not just loan volumes that are heading north, but typical loan sizes continue to grow too.
“The increase in big-ticket loans is the real driving force behind the sector’s annual growth and further evidence that borrowers see bridging loans as an effective short term finance solution.”
Keywords: West One, Bridging, Lenders, Stephen Wasserman, Loans, Director, Lending, Products, Index, Lending,
Source: Bridging & Commercial — https://bridgingandcommercial.co.uk/bridging-lending-nears-163-3bn