We have seen a dramatic increase in short term bridging loans enquiries over the past few weeks.
Bridging loans are based around commercial finance so the pricing now looks pretty competitive compared with standard residential mortgages and even buy to let. Bridging finance is designed to provide short term finance fast and many bridging loan companies can have funds available in just a few days. The cases we have seen recently are varied with loan sizes ranging from just £50,000 to close to £2m. Many are for property developments and auction property purchases where the money is only needed for a few months.
Commercial bridging loans tend to make up the bulk of the enquiries with residential bridging loans a little quieter. This is reflected in the general housing market and feedback from local estate agents.
In terms of funding, the bridging loan companies seem much more willing to lend than their residential mortgage counterparts. Whilst commercial mortgage lenders are tightening up on the types of loans they are willing to grant, with fees on the up, the funding is still there for those people who need it.
In fact, not so long ago we were using commercial finance in place of buy to let mortgages because it was cheaper. If you would like to discuss short term bridging loans then please call us on 0800 316 5756 or visit the commercial finance section of our website.