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Bridging

The commercial bridging market is not all about rates.

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by Wayne Lee

A decade ago bridging rates were relatively high and the choice of funder was limited
 
Now, the bridging market is much bigger and hugely competitive, with new lenders coming on the market every year. This competition has pushed rates down and LTVs up, making bridging a much more viable option for all kinds of borrowers, residential and commercial alike.
 
And with interest rates so low, many lenders have access to much cheaper money so are able to drive down rates even lower.
 
And while this all sounds great for the borrower, the problem is, cheaper rates come at a price; that cash tends to be clawed back somehow, in the form of extension fees, tariff of charges, default interest etc etc. In addition, while many of these lenders are enticing brokers and their clients with what seem to be cheap rates, in some cases the other casualty of cheap money is service.
 
When lenders are using cheap funding lines, they can sometimes come with much stricter underwriting, meaning the lender needs to ask the borrower for much more in terms of information and documentation as part of the application process

"This competition has pushed rates down and LTVs up, making bridging a much more viable option for all kinds of borrowers."

Wayne Lee, BDM

Hope-Wayne-2

Wayne Lee

Wayne is responsible for developing new business across the UK. He has worked in financial services for approximately 20 years, is a specialist in mortgage and bridging finance and has handled bridging finance deals from start to finish through private funders throughout his career.

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