Anticipated Increase In Bridging Loans
The number of new bridging loans being written across the UK has seen a significant increase over the course of the past twelve months or so, as many property investors and landlords have been using this method of borrowing to release funds from their existing property portfolios for further development alongside their buy to let loans.
A new survey conducted amongst financial advisers and loan brokers, has found that a large proportion of this sector are anticipating a further significant increase in the amount of bridging loan business they write over the next twelve months.
The survey, from West One Loans, who specialise in bridging loans and finance, found that the average loan brokers is expecting an increase in bridging loan activity of around 27 per cent over the course of the next year, with those who focus on bridging loans expecting an increase of around 33 per cent for the year.
Almost two thirds of the loan brokers who were interviewed said that they had seen an increase in their bridging loan business, with some saying that the loan numbers had actually doubled within the last twelve months.
The figures also showed that the majority of new loan business written by loan brokers and advisers is now in the Buy to let sector, as both new and experienced landlords take advantage of low property prices and cheap loan deals.
Duncan Kreeger of west One Loans said “The bridging loan industry has grown rapidly since 2010. Net lending is up 56 per cent, which makes the mainstream loan market look turgid by comparison and the rate of growth shows no signs of slowing.”
“Only 6 per cent of brokers think it’s a bad time to invest in buy to let, while 83 per cent think it’s now a good time for landlords to expand their portfolios.”
