In the third quarter of 2017, bridging lending totalled £4.7bn, which exceeds the £4.4bn lent in 2016 before the Brexit referendum, P2PFinanceNews.co.uk reported in November 2017. Immediately following the Brexit leave vote, many analysts predicted that the bridging finance sector would be negatively affected by the economic uncertainty that Brexit caused. While there were signs of some decrease in lending activity after Brexit, the latest figures suggest that Brexit is having little or no effect on the current number of bridging loan applications. The average bridging loan is £600,000 in the third quarter of 2017, which compares with £900,000 in the third quarter of 2016. This reflects the fact that fewer properties valued at over £1m are being sold. The increase in total bridging loans is due to a larger number of smaller loans being issued. The figures were compiled from statistics published by the Association of Bridging Professionals. The bridging finance sector is fiercely competitive and this has kept bridging loan interest rates down. After the Bank of England interest rate rise in November 2017, loans are predicted to become more expensive. Some financial experts believe that the Bank of England’s interest rate rise is the first of many small rises that will occur over the next few years. When Britain finally leaves the European Union, the economy could slow down, but there are many bridging finance lenders who provide flexible funding options. No matter what the outcome of the Brexit negotiations brings, the bridging industry is confident that it can adapt to any changing conditions.
May 10, 2022
