Latest figures from Bridging Trends for 2018 show a buoyant market in 2018.
The loan volume transacted by contributors to the data, was £766.9m, the highest ever figure, an increase of £232.8m compared to 2017.
Bridging is fuelling property renovations as developers seek to improve yields and returns on their assets as well as build portfolios for the future. Indeed, funding property refurbishments was the most popular reason for obtaining bridging finance in 2018, accounting for 28% of advanced loans.
The figures also show a falling interest rate market which is good for property developers looking to renovate for rent or onward sale for a profit.
It may be time to recognise bridging finance as a mainstream option when it comes to fast property acquisition, particularly for un-mortgageable property where finance options are not available from High Street lenders. Renovating property can lead to the property becoming acceptable to longer term mortgages and refinancing for exiting the bridging loan.
Bridging finance can also be delivered quickly as often it is required when a property opportunity arises or the landlord is keen to get refurbishment work started and completed as quickly as possible to help maximise returns, after all as the saying goes – time is money.
Although the average turnaround time according to Bridging Trends contributors is 45 days to completion, we work with a wide panel of lenders who can often provide funding much quicker. So make sure to check with us for your funding requirements as sometimes even what appears to be a straightforward renovation can have obstacles that need to be overcome and expert knowledge of the funding options available is vital for a project to run smoothly to completion.