The Intermediary – February 2025 - Flipbook - Page 41
SPECIALIST FINANCE
Opinion
Bridging to invest
overtaking
chain-breaks
A
forecasted 25%
increase in bridging
finance over the next
five years, in what
is now over a £10bn
industry in the UK,
is undoubtedly music to the ears of
brokers and lenders, and that’s not all.
Whether you look at the latest
Mintel report or Bridging &
Development Lenders Association
(BDLA) statistics, they tell a story of
change and positivity overall, which
we all need as we start 2025. Two
elements are of particular interest:
loan applications (up 6.7% in Q3) and
a change in the main reason for a loan
(24% investment).
Investment and confidence
An increase in loan applications
shows a general awareness of bridging
as people begin to explore wider
solutions to fast finance for varying
reasons. It’s good to see the efforts of
all brokers and lenders being rewarded
and clients geing the finance
they need.
However, a jump to 24% of bridging
being accessed for investment –
pushing chain-breaks down to 17% – is
remarkable. Historically, bridging
has been the go-to for deals falling
out of bed, which will continue to be
vital. However, loans for investment
signal general confidence in bridging,
the economic outlook, and how well
brokers are serving clients.
Supporting investors
A quarter of bridging loans now are
for investment, demonstrating the
value of the speed at which they can
be delivered and the competitive rates
now available to clients. The market’s
standard of service, regulation, and
reputation have also increased vastly
over the last decade.
RICHARD KEEN
is national sales manager
at Greenfield Bridging
Investors are savvy and increasingly
aware that bridging can be viable
in certain circumstances, or
even essential to capitalise on
opportunities. As mortgage rates sele
at a higher level, clients also realise
that bridging is more affordable and
relative in terms of profit.
Investment encompasses many
different circumstances, from
purchase to renovation projects. As
networks and brokers capitalise on
the opportunity with investors, it’s
essential to understand that lenders
have different criteria for development
and improvement, with varying risk,
service, and flexibility levels.
As bridging continues to grow,
brokers and networks have an
opportunity to flex their muscles with
partnerships with lenders that balance
speed with rates and service. ●
ADVERTISEMENT
It’s About Time...
banks put landlords further in
the black, the more they go green
Get cashback on properties with EPC ratings of A – C.
redwoodbank.co.uk | 0330 053 6067
Property secured on a loan may be repossessed if repayments are not maintained.
All information correct at 28/10/24. Visit our website for further information and full terms and conditions. Authorised by the Prudential Regulation
Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority. Registered in England and Wales under company
registration no. 09872265 at Suite 101, The Nexus Building, Broadway, Letchworth Garden City, Hertfordshire, SG6 3TA.
February 2025 | The Intermediary
41
