You are here: Home - Specialist Lending - Bridging -

Bridging loans on the rise amid tougher lender criteria – MTF

by:
  • 09/11/2017
  • 0
Bridging loans on the rise amid tougher lender criteria – MTF
Brokers have reported a jump in bridging loan volumes, as borrowers struggle to secure mortgages from mainstream lenders, according to research.

 

Almost two-thirds of brokers reported a rise in bridging volumes in the third quarter of 2017, up from under half in the three months previously, a survey by lender MTF showed.

It comes as borrowers are hit by tougher restrictions from mainstream lenders, MTF said.

The regional spread of demand for bridging loans has also widened, with more demand in Scotland and Northern Ireland, according to the survey.

Overall, the South East was found to have the biggest demand for bridging loans, followed by London.

Development projects and business purposes are the most popular reasons for taking out bridging loans, accounting for 30% and 17% respectively.

The bridging loan process took longer than it did 12 months ago, according to two-thirds of brokers surveyed.

More than half said completion took more than three weeks and fewer than one in five reported the process as between one and two weeks.

 

Speed is of the essence

Almost three-quarters of brokers surveyed blamed solicitors as the main reason for delay, with the value also causing problems for around one in ten.

James Anderson, head of new business at MTF, said: “Bridging loans remain an important financial tool for borrowers and demand continues to grow.

“Speed has always been a vital element in bridging finance and it is important that solicitors understand what is required, so that bridging finance requests can be completed as quickly and accurately as possible.

“There are some excellent firms of solicitors to choose from and many bridging loan lenders, like MTF, use a panel of pre-approved firms to help speed up a bridging loan transaction for the applicant.”

There are 0 Comment(s)

Comments are closed.

You may also be interested in

Bridging

Keep up-to-date with all the breaking bridging and short-term lending news and analysis, from regulatory changes to product innovation and inside market knowledge. Take a look at our broker and lender case studies showing short-term finance in practice.

Commercial

Find all the news, opinion and analysis for property finance brokers specialising in commercial and semi-commercial mortgages, alternative and development finance for commercial investments in residential projects.

Second charge

Stay up-to-date with the latest news, analysis and opinion on the secured loan market as it evolves into a mainstream finance option following European regulation on 21 March 2016.

Complex buy-to-let

Whether it’s a complicated asset or a complex customer, you’ll find out all the breaking buy-to-let news in this section. From limited companies to portfolio landlords, student lets to a House in Multiple Occupation, we’ve got all bases covered with our up-to-the-minute news, analysis and opinion.

Mortgage Solutions

Find all the breaking news, analysis and industry comment on Specialist Lending Solutions' sister site, Mortgage Solutions
Read previous post:
2241164-buytolethouse
Buy-to-let and property development SME numbers surge – Hampshire Trust

The number of small businesses in the buy-to-let and rental sector has surged, yet firms in the sector are downbeat...

Close