Aldermore, which extended its bridging and development finance proposition into Scotland in April this year, has told brokers it will stop accepting new bridging loan applications nationwide in two weeks.
The challenger bank will honour all pipeline cases until 1 September.
Aldermore said the growth of the business means its ‘priorities’ have switched to its core mortgage areas of buy to let, residential, commercial and property development.
In mid-July, short-term lender Borro stopped second-charge lending due to a spike in re-bridging away from high street banks created a flood of customers looking to refinance urgently to secured loans.
The Brexit vote on the 23 June sent shockwaves of uncertainty through the market, with many high street lenders battening down credit risk in niche areas of the market like bridging.
Research from the Association of Short Term Lenders indicated lenders’ outlook on the bridging market post-Brexit had taken a knock. In April, 71% thought bridging volumes would grow over the coming year, sinking to 20% following the EU referendum.
Victoria Hartley is contributing editor at Mortgage Solutions, Specialist Lending Solutions, Your Money and Your Mortgage at London-based publishing company AE3 Media.
She has an MA in Radio from Goldsmiths after gaining a 2:1 in a Comparative American Studies BA at Warwick University. She also holds a TEFL qualification and taught overseas in Mexico and Japan from 1994 to 1997.
Her role includes editorial oversight of the news, analysis and features, event content management and strategic and editorial consultancy for the AE3 Media group. She is an experienced video, broadcast and live-event host and regularly chairs web and podcast debates and interviews.
Multiple award nominations have resulted in two wins: Santander Media Awards, trade journalist of the year and Headlinemoney Awards, mortgage journalist of the year (B2B). Here is one of the award-winning pieces: https://www.mortgagesolutions.co.uk/news/2011/07/21/exclusive-tale-bailey-fraud-witness/
Previous roles include editorships of Mortgage Solutions, consumer title What Mortgage and trade title Credit Today as well as a stint freelancing for a variety of outlets including The Guardian and Which? Money.
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