Bridging Loan Drawdowns Look Favourable
For a number of years the West One Loans Bridging Index has been produced every couple of months providing a guide to the UK bridging loans finance sector. The latest one covering the 12 months to June 2015 makes for interesting reading and indicates that short-term borrowing is becoming more popular as confidence has been returning to the UK economy.
The index shows that for the year ending June 2015 there has been a huge increase in the monetary value of bridging loans being set up. In that period, approaching £2.8 billion of this short term finance was completed upon which was an increase of 30% when compared with the same period leading up to June 2014 when the figure was £2.1 billion.
It is pleasing to see that the number of bridging loans being completed has risen by 12.6% when comparing the year to June 2015 with the year to June 2014. The size of each bridging loan has also gone up by in excess of 33% to over £747,000.
The average Loan to Value (LTV) for the year ending June 2015 stood at 48.5% that was slightly more than the 47.3% average LTV for the 12 months to June 2014.
The average interest rate on bridging finance for the 12 months to June 2015 was 1.16% that was a slight drop in comparison to the year to June 2014 when the rate averaged 1.17%.
When looking at the increase seen in the annual amount drawndown for the year to June 2015 in comparison to the previous 12 months to June 2014, it is perhaps not going to be too long before we see annual bridging loan lending break through the £3 billion mark over a 12-month period.
So, if you are looking for bridging finance, why not get in touch with us here at Commercial Mortgage Link and we will put you in touch with an expert who will do all that they can to assist you.