Increase In Bridging Loan Demand
Although the housing and home owner loan market may be struggling to keep its head above the water at the moment, with property prices still rather volatile and a lack of choice of suitable cheap loan deals for those wanting to buy, other sectors of the loan market are fairing much better.
Specialist bridging loan firm, Drawbridge Finance, have just reported that the number of bridging loans being taken out by professional property investors has increased dramatically over the course of the last month, as investors take advantage of investment opportunities in the property markets.
In fact, Drawbridge say that they experienced an increase of 128 per cent in the number of agreements in principle being approved for bridging loans during the month of August alone, compared with the figures for the previous month.
In total, the specialist loan firm gave agreements in principle for 127 bridging loans, for a total value of slightly more than £110 million and over the course of the month, more than one agreement in principle every day converted into a successful bridging loan application.
This shows that. Although longer term loans are falling in numbers, or at least remaining static, short and medium term bridging loans are becoming ever more popular as investors use these short term loans in order to snap up property bargains.
Head of marketing at bridging loan company Drawbridge Finance, Mark Posniak commented on the figures, he said “The residential property market may be suffering but professional property investors are as active as ever.”
“Uncertainty represents opportunity and so the more volatile the market gets, the more active portfolio investors and other professionals become. What we have noticed is that they are much more specific about their lending needs and demand finance solutions tailored specifically to their needs. bespoke bridging is becoming more important than ever.”
