Bridging business booms in lockdown

MFS issued more than £30m worth of loans over the past four months.

At the same time, Hope reported a bumper June with the number of formal loan offers increasing by 20 per cent compared to the same month last year.

It comes off the back of an annual 189 per cent increase in enquiries to the lender.

Both residential and commercial bridging finance have been in demand, according to MFS, while Hope noted a 90 per cent skew towards residential.

MFS said a particular highlight of the period had been a £1.2m second-charge commercial bridging loan, which allowed a client to complete on a share purchase for a new business and also restructure existing finance.

The lender has also launched a new CRM system to help streamline its internal processes.

Chief executive Paresh Raja (pictured) said: “We have experienced a notable increase in enquiries from brokers in need of bridging loans for their clients during lockdown.

“Not only are brokers requesting loans that can be tailored to meet the complex needs of their clients, they are also after loans that can be deployed quickly to ensure deadlines are met and transactions are completed.

“Sophisticated bridging lenders have been vital in propping up the real estate market during this uncertain time, showcasing just how bridging loans can be used to help buyers in difficult situations.”

Hope said the increase in demand coincided with the launch of its new custom collection range.

Chief executive, Jonathan Sealey, added: “These figures are evidence that demand for short-term finance is strong, and growing. With lockdown easing, there is a pent-up demand for borrowing as projects that were put on hold in spring are put back in motion.

“The strong demand we have seen also reflects the range of products we have made available to meet borrowers’ diverse needs in the post-lockdown world.”

Octagon Capital