Bridging loans can be used for almost any purpose so long as there is enough equity in the property. The UK Bridging Loan market is estimated to be worth £2.5 billion and the demand for bridging loans is believed to be growing by 25% year on year. Bridging finance can be made available for many purposes, the obvious one being to bridge the gap between the purchase of a new property and the sale of an existing property.
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The [tag]Bridging Finance[/tag] market is reported to be currently worth about £2 billion per year, which would make it a significant part of the UK property finance market. Despite its size the [tag]Bridging[/tag] market is surprisingly under represented in the mainstream media.
For some people, such as property developers and investors, Bridging Finance is a tool of the trade – and a very powerful one at that. Bridging Finance has the qualities of flexibility, convenience and speed of implementation. And it is the speed that makes it such an effective and valuable resource.
When the need for a bridging loan arises people are often concerned that a poor credit history may cause problems. Well, the basic condition of Bridging Finance is that the lender’s advance is covered by the value of the property being offered to secure the loan.
The year 2006 has been another one of expansion for the Bridging Finance sector seeing a record number of enquiries and loan completions. Additionally new lenders are starting to enter the short-term property finance market-place which means rates will start to fall as competition increases.