Covid-19 Bounce Back loans for property businesses16:06 PM, 5th May 2020
About 4 weeks ago 47
Bridging Trends has reported its lowest recorded average monthly Bridging Loan rate across the market since 2015. Across its surveyed lenders the average pricing for monthly interest is now down to 0.74% for Quarter 1 2019 and this is down from 0.8% in the last Quarter of 2018.
The most popular reasons for borrowers taking out a bridging loan was for the purchase of an investment property, as investors continued to buy property despite a backdrop of uncertainty surrounding Brexit.
The fall in rate and average Loan to Value was partly assisted by the first recent increase in regulated Bridging finance up from 31.6% of all loans Q4 2018 to 38.3% Q1 2019 with the average LTV dropping 51.3% from 57% the previous quarter.
Commercial director at MT Finance, Gareth Lewis, said: “Property investors are continuing to turn to bridging finance as a support tool, as reflected in the 22% utilising the product for investment purposes.”
“With highly professional specialist lenders offering flexible products at competitive rates, bridging finance has become an attractive proposition to those property investors who are looking to expand their portfolio and need certainty when conducting their business and who often need to move swiftly to capitalise on an opportunity.”
The full Bridging Trends Q1 2019 infographic can be viewed here.
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