A recent survey revealed that two thirds of bridging finance brokers reported an increase in business in the third quarter of 2017.
The survey, conducted by finance lender MTF and reported on by MortgageSolutions.co.uk in November 2017, showed that one of the main reasons for people turning to bridging finance was that mainstream lenders had introduced tougher lending criteria.
Although all areas of Britain have seen increased bridging finance borrowing, demand for bridging loans has particularly increased in Scotland and Northern Ireland, with the South East and London, also having a high demand for loans.
Development projects were the reason for 30% of bridging loans, with business purposes accounting for 17%.
Two thirds of brokers surveyed were concerned that bridging loans were taking longer to complete than a year ago. Most blamed this on solicitors delaying the legal work. More than 50% of the mortgage brokers asked said that completion of loans was taking three weeks or more, but 20% said that loan applications were taking between one and two weeks.
James Anderson of MTF said:
“Bridging loans remain an important financial tool for borrowers and demand continues to grow.
“Speed has always been a vital element in bridging finance and it is important that solicitors understand what is required so that bridging finance requests can be completed as quickly and accurately as possible.”
There are solicitors who specialise in bridging finance legal work, and these can speed up the process. Bridging finance brokers can liaise with lenders and solicitors to help the loan process go smoothly and quickly.