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Aldermore to halt bridging lending on 31 August

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  • 17/08/2016
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Aldermore to halt bridging lending on 31 August
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.

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