A recent report called Bridging Trends looked at the average loan period for bridging finance and the average time taken to complete a loan application. The typical bridging loan is for a year. Many lenders used to advertise loans “up to 12 months”, but the Bridging Trends report shows that many people want longer period bridging loans. Bridging loans can be arranged quickly. However, the average loan length in 2017 was 43 days, down from 45 days in the previous year. This is the time taken from the initial offer, to when the funds are available. Loans that take less than 43 days can be arranged if a deal is time sensitive. With property deals, where time can be a vial factor in securing a deal, there are instances where a loan has been available within seven days or less. The bridging finance sector is very competitive with many lenders vying for business. This has kept interest rates down. Some lenders compete by specialising; for example, a lender may offer longer-term loans of up to four years. Another may specialise in property auction finance. Many specialist lenders are prepared to look at lending applications that have been turned down by mainstream lenders and high street banks. A bridging finance broker keeps up to date about new entrants to the market and new products so that they can find the best deals to suit their client’s individual needs.
May 10, 2022
