‘Regulated Bridging’ Continues to Dominate Brokers’ Top Search Terms

Once again, ‘regulated bridging’ has topped the table as the most common search term among specialist brokers for January for the third consecutive month.

The term has now ranked within the top two search terms for over 18 months, which according to Knowledge Bank could be attributed to the growing lack of available inventory on the UK’s housing market.

Borrowers in growing numbers are turning to fast-access bridging finance to fund quick purchases, or to ensure their plans go ahead in the event that the sale of their own property falls through.

Meanwhile, the second most popular term for January was ‘minimum loan amount’, suggesting that many prospective bridging loan applicants are seeking to fund less extensive improvements to their properties and other projects. This was, by contrast, followed by ‘maximum LTV’ and ‘heavy refurbishment’, indicating a higher level of interest in larger loans for more extensive projects.

Another strong performer among search terms in January was ‘minimum property value’. According to Knowledge Bank, this could suggest that bridging finance is becoming a popular choice for funding the purchase of cheaper properties in need of renovations.

There were no big changes in the commercial segment, where the top searched term for January remained ‘semi-commercial properties’.‘Minimum loan amount’ and ‘maximum LTV’ came in at second and third, respectively.

An Optimistic Outlook

Commenting on the sector’s stellar performance over recent months, LDNfinance director, Chris Oatway, predicted more of the same to come.

“It’s not surprising we are seeing that ‘funding a chain-break’ was a popular reason for bridging finance,” he said.

“Based on the enquiry volumes we received in January, we anticipate a good year ahead.”

Operations director at Knowledge Bank, Matthew Corker, was equally unsurprised to see the bridging sector’s growing popularity among those looking to hold onto their place in the property chain.

“With buyers vastly outnumbering sellers in the residential property market, it appears more common than ever for prospective home movers to use bridging loans to purchase an onward property before theirs has sold,” he said.

“Interestingly, we’ve also seen an increasing number of borrowers look to bridging finance to make minor improvements to properties, in contrast to the beginning of the 2021”

Broker support continues to hold the key to getting an unbeatable deal on any type of bridging loan. Many of the UK’s most competitive bridging specialists continue to offer their services exclusively via broker introductions.

Private and commercial applicants alike are therefore advised to seek independent broker support at the earliest stage. Whether you are looking to fund a major commercial property development project or simply cover the costs of minor renovations at home, an experienced broker can help you find an unbeatable deal to suit your requirements and your budget.