Bridging finance is now being used more effective and recognised as a fast and flexible solution. The evolution of bridging has changed over the past 10 years from its original purpose for auction purchases or for people buying a home before selling their existing one. 79% of lenders surveyed believe the bridging market size now equates to be more than £3 billion compared to 29% estimating it be worth over £5 billion according to Ernst and Young Financial Services Corporate Finance team. The reason behind the estimation is due to the bridging market having no formal register of who is lending.
There is a growing awareness of how bridging finance could be used in alternative ways and short-term lending. Bridging is now turning into a first option to meet a specific need. The Ernst and Young survey identify 32% of bridging loans were now for used for business purposes, 29% for refurbishment and 17% were used for mortgage delays.
Exit strategies are crucial for bridging loans due to their short-term nature from 3 – 24 months and are commonly interest only with the entire sum being paid off at the end of the term. At Smart Money we recognise bridging loans need to be both fast and flexible. One of our recent cases completed within 9 days from the pack being returned to us. For another super-fast completion give us a call!