After a self-imposed hibernation following the 2007/08 financial crises, the high street banking institutions are displaying an appetite to lend again. The news is amazing for the economy, but what does it mean for the professional companies of property development bridging loans who helped in filling the lending vacuum?
Acquiring a bridging loan is not merely a short-term version of a mortgage product. You can use it for a vast array of applications, which comes in many forms such as residential property development finance at this url.
Residential bridging loans at http://www.omnicapital.co.uk/category/media-coverage/ are a favourite choice for property developers who want to improve property to sell at a profit or perhaps refinance using a mainstream mortgage after the work has been completed. Refurbishment loans are particularly popular for this purpose.
While somewhat simple in its design, the conditions that value using a bridge loan are nuanced and complicated in most cases. This calls for a customised approach to their risk evaluation, which is a skill the banks have largely lost in automating their credit evaluation processes.
Moreover, the banking institutions opt for straight-forward mortgage lending rather than commercial lending. This is due to that considerable assistance that’s provided by the government by means of the Funding for Lending and Help to Buy schemes. As a result, the alternative loan providers have seen the business bridging loans at Omni Capital quickly increase when it comes to market popularity.
This trend is bound to continue with the banks focusing all their efforts on lending with which they are comfortable, while the professionals flourish with their niche products according to attractive bridging loan rates as well as product flexibility. We may therefore be confident that the future is safe for bridging loans in the UK.