Amid the second quarter of 2017, bridging loan activity in the United Kingdom peaked at £150 million. Once a comparatively niche and unexplored area of the mortgage market, bridging finance has seen extraordinary gains over recent years – spiking a full 26% in Q2 compared to the first three months of the year.

As for the primary motivations of brokers and customers alike to look for these services, the vast majority cited the inevitable delays in receiving financial assistance from traditional banks and high street lenders Especially when hoping to organize larger loans like mortgages, traditional lenders are progressively being seen as inconvenient by the modern consumer.

The latest Bridging Trends survey found that the most common reason for bridging loan applications during Q2 last year was to fund refurbishments and general improvements.

On the whole, however, what’s clear is that the bridging industry in the United Kingdom is looking stronger than ever before, as more lenders and borrowers alike explore the alternatives to conventional mortgages and financial products.

Another fascinating finding was the way in which in spite of bridging activity as a whole spiking dramatically, borrowers, in general, sought significantly lower sums of money than in previous quarters. The average loan-to-value (LTV) levels dropped to a new low of 45.4%, which again represents the lowest recorded since 2015. What’s clear is that the bridging industry in the United Kingdom is looking stronger than ever before, as more lenders and borrowers alike explore the alternatives to conventional mortgages and financial products.

Comparatively, low-interest rates are also credited with the continuous growth of bridging loan applications across the UK, with average monthly interest rates coming out at 0.84% for the quarter.

If structured correctly and based upon realistic timeframes and price estimates, bridging finance can ease the pressure of matching up settlement dates and give you time to sell your existing property while securing your new one.

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