Bridging Finance

Bridging market improves in face of uncertain mortgage market

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Bridging Loans: Bridging market improves in face of uncertain mortgage market

Bridging market improves

They say it is a brave man who makes predictions and there is plenty of evidence of even getting the “dead certs” badly wrong. Just ask Hillary Clinton, Theresa May, Gary Lineker and Michael Fish; to name a few. The UK housing market is no exception and, after years of turbulence, we can no longer take it for granted that house price rises will just happen and property will just sell. The traditional house purchase model of sell, buy and move is being tested to the limit every day and failing to work more and more regularly. Bridging finance is becoming an accepted and in many cases preferred route to property purchase.

Indeed, according to figures from the Bank of England there was a 500% growth in monthly bridging lending between December 2014 and December 2016.

Who would have predicted five years ago that lenders would be offering bridging rates below 0.5% per month? How long will it be before lenders are offering bridging products matching true mortgage rates? Of course we cannot predict this but is it really that unrealistic?

In a price driven society brokers and borrowers could easily get hung up on interest rates instead of the desired outcome and many still do. Focus on a higher interest rate, which will only be in place for a few months, can often distract from the main purpose which is to get a deal done and realise the benefits of raising the required capital quickly.

Lenders have spotted the opportunity, tried to lower the barriers in bridging. The fact that more and more lenders are entering the bridging market with ever more flexible products suggests that they are predicting bigger and better market growth for bridging products. Not only has pricing improved but forward thinking lenders are seeing bridging as the natural route into a term product so “bridge to term” products are evolving to give borrowers greater surety of exit, lower setup costs and a longer term relationship between borrower and lender.

Historically viewed as the “loan of last resort”, bridging is now being recognised and accepted by more enlightened sellers, buyers, estate agents, financial advisors and even solicitors as a better solution for more circumstances. With the ever reducing cost of bridging, the speed of the transaction and the reduced pressure of having to get the sale across the line to complete, it’s easier to justify why bridging is a more suitable route, whether giving buyers time to achieve the sale price they really need or facilitating a lucrative business deal.

For brokers new to bridging, forget the rates and fees to begin with. The main questions should be “What do you want to do? When do you need to do it? What are the upsides and downsides of not doing it?” From then on it’s a Cost versus Benefit decision which factors in the rates, fees, speed and ease of the process. The cheapest bridging loan in the market is of little benefit if it doesn’t complete in time.

As more advisers overcome historic prejudices about bridging and get to grips with selling bridging based on the outcomes, not just the price, I think it is safe to predict is that bridging is growing, becoming a much more accepted proposition and available to more and more capital raising or property related scenarios.

www.promisemoney.co.uk

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Securing competitive terms on uk bridging market requires expert underwriting knowledge. In addition, our specialist broker team works directly with over 90 specialist lenders across the UK.

Consequently, reviewing your uk bridging market options with an FCA-authorised specialist credit broker ensures whole-of-market access while avoiding unnecessary fees and delays.

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Because specialist lending facilities require bespoke underwriting, comparing lenders across the UK is essential. Explore our complete guide to Bridging Loans Desk to understand how different lending criteria apply to your requirements.

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Key Takeaways: Uk Bridging Market Checklist

Additionally, property valuations can often be expedited or desktop-assessed, significantly reducing upfront costs and surveyor delays.

Furthermore, specialist bridging lenders assess affordability based on property equity rather than strict credit scoring alone.

Consequently, time-critical auction purchases and broken chains can complete in as little as 3 to 7 working days.

Therefore, working with Promise Money ensures you compare optimal rates and terms across 90+ UK lenders.

Specifically, flexible interest options—including retained, rolled-up, or serviced interest—can be tailored to protect your cashflow.

Moreover, facility agreements can be structured with zero redemption penalties as soon as long-term funds are ready.

In addition, non-standard property construction such as timber frame or concrete can be financed without high street restrictions.

Crucially, borrowers facing historic credit blips or complex income structures can secure competitive terms through our panel.

In practice, working with experienced specialist solicitors prevents administrative hold-ups and keeps legal fees completely transparent.

Above all, establishing a verified exit strategy—such as property sale or remortgage—ensures smooth facility redemption.

As a result, property investors and homeowners retain complete control over project timelines and financial commitments.

After all, independent whole-of-market guidance ensures you never pay unnecessary arrangement fees or higher interest margins.

Meanwhile, bridging facilities can be secured across multiple properties to maximize borrowing capacity without selling assets prematurely.

Indeed, rapid decision turnaround gives you the confidence to bid decisively at property auctions.

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