Bridging loan industry – a quick overview

If you are considering a bridging loan as a solution to your problem, it is reasonable to want to know more about the driving forces behind it.

You may want to know about the practicalities of the industry, or be more familiar with the sorts of bodies which make up the industry. In this brief, we look at how the major parties in the industry tie together.

Gain an understanding in under 3 minutes

Who is in the industry?

Generally speaking, there are three main parties concerned in the bridging loans industry: a lender, a customer, and a regulator.

Who are the customers?

While there are many uses for a bridging loan, customers are typically in need of fast finance in order to finalise a property deal.

Customers generally include landlords and property developers, or people who want to purchase a property at auction. But there are particular cases outside of property too. For example, we helped a customer who was landed with an unexpected large tax bill.

Who are the lenders?

Lenders come in many different shapes and sizes. There are small businesses, and there are larger more corporate lenders. Each might have a specialist reason for lending, such as property purchase. But for confidence, always look to see if the lender is a Member of the Council of Mortgage Lenders.

Who is the regulator?

At present, most loans are regulated by the Financial Conduct Authority which changed its name from the Financial Services Authority in April 2013. Regulation is a complex matter and affects bridging loans in different ways. It depends on the kind of customer.

How do I keep up with news in the industry?

There are a few websites which keep track of news in the bridging loans industry, such as bridgingandcommercial.co.uk.

And the major papers such as the Financial Times often cover the important stories. This includes announcements such as the performance of the market.

Where should I take out a bridging loan?

With Affirmative you can borrow between £10,000 and £5 million with a bridging loan. Your loan can be ready in hours, secured against an existing property or a property being purchased as a first or second charge. 0 – 12 month repayment term. No application fee. It is easy to apply.

To find out more call our Manchester office today on 08000 44 84 84.