Our short term bridging loans are for purchase, refinance, property improvement or to unlock working capital for business purposes.
This unique overdraft provides you with a flexible drawdown facility giving you instant liquidity and avoids heavy setting-up costs.
Individually structured loans for residential and commercial projects, with finance available for site purchase, construction and fees, refinance, equity release and to provide working capital. Loans are available up to 90% of the site cost.
Flexible first and second charge non-regulated loans available on terms from 3 to 5 years.
We have a commitment to innovation and with the ever changing financial landscape around us we have designed a range of unique Specialist Lending products that solve a range of property finance needs.
By Jonathan Rubins, Director & Chief Commercial Officer at Alternative Bridging Corporation
UK Bridging Finance is an essential tool for property investors, providing short-term loans that bridge the gap between the purchase of a new property and the sale of an existing one. In 2024, bridging finance offers diverse options designed to meet the varying needs of investors. Brokers act as the essential intermediaries in these transactions and must stay informed about the latest trends and regional opportunities to better serve their clients. In this article, we explore some of the regional trends we have seen in 2024, and we provide some strategic insights for brokers.
Several types of bridging finance have gained prominence in recent years. Development finance, for instance, remains a popular choice for property developers who require funds to start or complete construction projects. Typically structured to be released in stages, this type of finance ensures that funds are utilised efficiently throughout the development process.
Auction finance is also trending. With the increasing popularity of property auctions, investors need quick access to funds to secure deals. Auction finance provides this immediacy, allowing investors to capitalise on time-sensitive opportunities. It is particularly attractive for those looking to invest in undervalued properties with the potential for significant returns after refurbishment.
Refinancing is on the rise as well, particularly among property owners looking to release equity from their existing assets. This strategy is useful for funding new investments or managing cash flow more effectively. Bridging loans are also being used more frequently for business purposes, such as renovations or dealing with short-term financial needs, demonstrating their versatility beyond just property transactions.
Another notable trend is the growing popularity of second charge bridging loans. These loans, secured against a property that already has a mortgage, provide an additional layer of funding without disturbing the primary mortgage arrangement. This type of bridging finance is particularly useful for investors who need extra funds for renovation or other purposes but do not want to refinance their primary mortgage.
We offer a wide range of bridging finance options across the UK. Our bridging loans include Residential, Commercial and Light Refurbishment loans over terms from 3 to 24 months, up to £3.5 million. We provide short term loans for purchase, refinance, property improvement or to unlock working capital.
While London remains the focal point for property investment in the UK, 2024 has also seen significant interest in other areas of the UK. The North West, particularly Manchester and Liverpool, has experienced an increase in property development and investment. These cities offer a combination of lower property prices compared to London and strong rental yields, attracting investors looking for lucrative opportunities. Manchester, with its tech and media sectors, and Liverpool, with its rich cultural heritage and growing economy, are prime examples of this trend.
The Midlands, with cities like Birmingham and Nottingham, also present appealing prospects for property investment. Birmingham’s ongoing regeneration projects and strategic location make it a hotspot for investors. Significant developments, such as the HS2 high-speed rail project, are enhancing the city’s connectivity and appeal. Nottingham, known for its thriving student population and affordable property prices, continues to attract investors seeking strong rental returns.
Scotland, particularly Glasgow and Edinburgh, cannot be overlooked. Both cities offer robust rental markets and have seen substantial growth in property values. Glasgow’s thriving cultural scene and investment in infrastructure have boosted its property market. Edinburgh’s appeal lies in its historic charm combined with a strong financial sector, making it a stable investment environment. The Scottish government’s supportive housing policies further enhance the attractiveness of these regions.
The South West of England, including cities like Bristol and Bath, is also garnering attention. Bristol’s vibrant arts scene and robust tech industry make it an attractive location for younger professionals and families. Bath, with its historic appeal and excellent quality of life, attracts both domestic and international investors. The rental market in these cities is strong, providing good yields for investors.
Wales, particularly Cardiff, has also become a noteworthy region for property investment. Cardiff’s growing economy, excellent transport links, and affordable property prices make it an appealing choice for investors. The Welsh government’s initiatives to support housing development are further boosting the property market.
Successful bridging finance transactions depend on strong relationships between lenders and brokers. A collaborative approach, based on transparency and mutual respect, is essential. Bridging finance providers work closely with brokers to understand their client’s needs and provide bespoke financial solutions that align with their investment strategies.
A key element of this strategy is effective communication. Brokers need to be kept informed about new products, market trends, and regulatory changes that could impact their clients. Regular updates, newsletters, and training sessions are vital tools in this regard. Additionally, offering bespoke solutions tailored to the specific needs of brokers and their clients can help strengthen these relationships.
Regulatory compliance is an essential aspect of bridging finance. Brokers must be aware of the legal requirements and industry standards that govern bridging loans. This includes understanding the Financial Conduct Authority (FCA) regulations, anti-money laundering policies, and other compliance issues that may affect their clients.
Emerging trends such as green finance, which supports environmentally sustainable property developments, are likely to gain traction. Bridging finance providers that incorporate ESG criteria into their lending practices will be well-positioned to meet the growing demand for sustainable investment opportunities. Over 74% of lenders plan to implement an ESG strategy over the next 12 months, a significant increase from 58% in 2023.
Additionally, the integration of technology in the lending process will further streamline and enhance the efficiency of bridging finance transactions. Artificial intelligence and data analytics can provide deeper insights into market trends, borrower behaviour, and risk assessment, enabling more informed lending decisions.
If you have any questions about our Bridging Loans, don’t hesitate to get in touch today. Our experienced BDM’s are on hand to answer any queries you may have.
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