Bridging loan demand rose in the last quarter of 2016 and much of this demand was from property investors, reported LandlordNews.co.uk in February 2017.
The Council of Short Term Lenders has published figures that show that there was a 26% rise in Q4 of 2016 from the quarter immediately before it. Short-term lending for the whole of 2016 increased by 9.4% compared to 2015. A total of £2.83bn was loaned in 2016, an increase from £2.59bn in 2015.
Benson Hersch, the chief executive of the Association of Short Term Lenders said:
“After a dip in volumes almost across the board in Q3 last year following the referendum, the size of the increase both in the quarter and across the year has overshot even my most optimistic expectations.”
Many property investors and buy-to-let landlords use bridging finance because of the speed in which loans can be approved and funds available. If an investor wants to complete a property purchase deal quickly, then it is possible to have funds available within 24 hours using a bridging loan. Many use bridging loans to cover delays in arranging long-term commercial mortgages.
If an investor finds property at a bargain price, then speed is essential so that the business opportunity is not missed,
There are many bridging loan products available, many at low interest rates. A broker has access to a wide range of loans and can find the right one to suit an individual investor’s situation.