Covid-19 Bounce Back loans for property businesses16:06 PM, 5th May 2020
About 3 weeks ago 46
In the last year Landlords borrowed £640 million on Bridging finance for the purposes of Buy to Let.
The use of Bridging Finance by Landlords has increased significantly in the last few months with a record total for July and August alone coming to £194 million, which is an estimated 36% of all bridging loans drawn down during the same period.
Figures supplied by the West One Bridging Index show that over the twelve months to August, industry gross bridging lending was £1.79bn. Compared to the previous twelve months, to August 2012, this represents annual growth of 26%.
Duncan Kreeger reporting on the index figures said “Landlords don’t just need mortgages. To expand portfolios, landlords are increasingly converting properties from other uses or from a dilapidated state.”
“The trouble is that standard mortgages were never really set up for that sort of loan, and the financial crisis has made lending criteria even stricter. For example, it’s practically impossible to get a high street mortgage on an ex-office – or a flat with no bathroom.
“Working alongside mainstream finance, short-term, secured loans increasingly bridge that gap. There are more and more landlords who want to grow their portfolios in more intelligent ways. Most vitally, this can actually expand the stock of available properties.”
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