Bridging loans are a fairly young concept when it comes to financial support. Twenty years ago the bridging loan market was fairly niche, but over the past two decades, the demand for these type of loans have grown significantly, particularly amongst property investors looking to expand their portfolios.
When did bridging loans originate?
Short term finance has been around for decades and as early as the 1960s there was a reference to loans similar in nature to the bridging loan, but it’s only within this century bridging finance has started to gain traction.
Why has the demand increased?
When the credit crunch and banking crisis occurred in 2008, many people looked elsewhere for loans as the majority of banks limited the amount of money they were lending.
It was during that time short-term finance providers were able to meet the demand of borrowers when the banks were unable to.
Now, there is a different reason for the increase in demand. As the cost of bridging loans have reduced in recent years, more and more people are looking to take advantage of the competitive rates.
Other businesses have also set their sights on bridging as a quick source of additional capital, lending against existing property to fund company expansion, business acquisition or other investments.
What is the future of bridging?
The demand for bridging loans is set to continue into the late future as these types of loans become available with new and competitive products.
Lenders, like ourselves, are looking to raise standards as well as provide speedy yet flexible loans.
For instance, Velocity Bridging works exclusively with clients who need their case completed within three working days.
Our private funding line, slick processes and decision-makers on the front line ensure we can take an application through from enquiry to drawdown faster than the competition which is what more and more clients are looking for.
Discuss your options further with Velocity Bridging on 01704 339588 or info@velocitybridging.com so you can get a tailor-made loan directly for your purposes.