Commercial bridging confidence grows

Bridging finance has to be the success story of 2015 with figures just growing and growing month on month. Commercial financing grew in July which follows the trend for recent months. Typical loan sizes increased as well, the average loan size for this year now stands at £750,000 per commercial case.

The economy continues to improve after the latest election, companies are expanding on a rapid basis and this is why bridging is so popular. Borrowers are becoming more confident in short term funding as they see the lenders ability to meet their demands and deadlines. On the other side lenders have become far more comfortable lending to companies due to sound repayment facilities in place. The increase in larger funding amounts is the real driving force behind this sectors annual growth and shows further evidence of the borrowers confidence in bridging finance.

Loan to values have hovered around 50% in the previous months of the year but now have reduced slightly to 48% but this still is an increase on the figures of 2014. So while loan sizes have increased this is not the case for loan to value ratios. This really is great news as it means borrowers are maintaining a larger stake of their own capital they have invested, thus giving the lender greater confidence.