Rise in bridging finance helps boost North West property market
Bridging finance was once perceived as a ‘last resort’ lending option but it has been key to the recent renaissance of the North West property market.
Fergal O’Cleirigh, head of property at North West Law firm Bermans explains:
“Bridging finance has been crucial to the upturn in the commercial property market during the last 12 – 18 months.
This type of finance is used because it is quick to turnaround. In recent years we have seen a dip in bridging finance because there has been a lack of confidence in securing bank funding to repay the debt. However, recently, we have seen a sharp rise in short-term finance which shows renewed confidence in the marketplace. We work extensively with some of the biggest and well-known names in the industry including Bridging Finance Solutions in Merseyside.
Andrew Palmer, head of Bermans’ Bridging Finance team said:
“What is also significant is that we are seeing an increase in the number of larger deals. We have just completed our second £1m plus deal in recent weeks which indicates a greater appetite for larger loans and the use of bridging finance as a supplement to (and not simply an alternative to) mainstream lending. The fact that lenders are prepared to lend and that investors are prepared to pay the higher premiums involved shows an increased level of confidence in the commercial property market, in the North West and beyond.”
Steve Barber, Managing Director of Bridging Finance Solutions said:
“The signs are there that bridging’s move into the mainstream will continue even as the economy shifts further out of recession. There will always be a place for fast short term funding whether in a rising or falling market. In recent years, more professional firms have entered the market and competition has driven market prices down and ensured transparency of terms.”