Gross Bridging Lending Goes Up In Q3
According to the Bridging Trends infographic produced for the third quarter of 2018, there has been another rise in the amount of gross bridging lending when compared with the previous quarter. The total amount of gross bridging lending made by the lenders and packagers providing data for the infographic in the third quarter of 2018 was £213.35 million with this being an increase of £15.4 million when compared with Q2 of this year.
The most popular reason why people sought a bridging loan was for property refurbishment with 35% using the monies for this purpose. In the previous quarter, 34% used such finance for refurbishment. The next most popular reason was for mortgage delays with 19% using the monies for this purpose – that was a slight drop on the previous quarter of 20%. In third place was for re-bridging at 16% – up from 12% in Q2 of 2018. Business purposes was in next spot at 11% – up from 10% in the previous quarter. Auction purchase accounted for 10% of bridging lending – up from 7% in the previous quarter. Other accounted for 9% – down from 17% in the second quarter of 2018.
The average period taken to complete on a bridging loan in the third quarter of 2018 was 46 days with this increasing by 3 days when compared with the previous quarter.
The average term for a bridging loan was 11 months with this being the same as in the previous quarter. We have said the same thing on more than one occasion but this does seem rather a long time for a bridging loan to be in place.
The average loan to valuation (LTV) dropped to 55.45% in Q3 of 2018 with the previous quarter being 56.9%. This statistic may well disappoint lenders who obviously look for as big a security margin as possible.
The average interest rate fell to 0.78% in the third quarter of 2018 from 0.83% in the second quarter of 2018. This statistic will no doubt please borrowers and it will be interesting to see what happens to bridging finance interest rates in the coming months.
If you are looking for bridging finance then why not get in contact with us here at Commercial Mortgage Link and we will put you in touch with a specialist finance broker who will happily discuss your requirements and do all that they can to source a suitable, competitive bridging loan from the extensive panel of lenders at their disposal. It is worth noting that it is not just the high street banks that provide such finance with some building societies and specialist lenders offering support for the right proposition.