The future of the business of bridging loans UK looks so bright. While it is apparent that the residential bridging loan services market has a limited size and that we may be close to it present limit, which is a sector worth over £1bn a year we cannot disregard.
The acquisition of bridging finance and associated temporary refurbishment loans offer property investors and developers an alternative and innovative choice in addition to giving much-needed liquidity at a time when bank lending remains constrained.
An important indication of this is how the offered bridging loan rates have gone down in recent months. The average monthly rate, which was 1.38% in the first quarter of 2012 has dropped to 1.24% in the same period for 2013.
Here are some of the reasons that caused this. First, increased competition has had an impact on bridging loans pricing at this website. Second, more investors have been interested in getting a property bridging loan at Omni Capital, encouraging a cheaper influx of money. And third, brokers have become better in understanding the appetite of the loan companies in taking risks: as deal quality improves, so prices can move downwards.
But lower interest rates have not deterred new investors looking for lucrative returns from the helpful property development finance at http://www.omnicapital.co.uk/news/ asset class. Indeed, the ongoing influx of new buyers is clear proof of the continuing appeal of the popular business bridging loan at this time when other investment classes offer weak or unreliable prospects.
Relatively high rates of return that is coupled with an improving credit quality picture and increasing behaviour standards will make sure that this continues for the foreseeable future. While not suitable for all borrowing scenarios, a competitive bridge loan could be the answer that rejected property specialists are searching for.