Bridging loan enquiries increase
Monday May 12th 2008
The number of businesses and property investors turning to bridging loans has increased, an industry expert has said.Chris Baguley, managing director of Bridging Finance Limited, believes a tightening of lending criteria by providers has left many organisations and individuals pursuing bridging loans as a form of finance.
As a result, Mr Baguley claims that more bridging lenders have entered the market to take advantage of the demand.
"Business owners and property investors are finding it more difficult to obtain funding from mainstream lenders due to a tightening of criteria and the result is an increase in the number of enquiries for bridging finance," he said.
Mr Baguley went on to add that providers of residential bridges have also seen demand increase as a result of the current climate in commercial property.
Datamonitor predicts that by 2010, gross advances will reach £5.6 billion, amounting to 1.7 per cent of the total residential mortgage market.