Bridging loans are used to solve current market issues and borrower needs.
As the demand for property finance outstrips supply, bridging loans fill the gaps left by traditional lenders. Funds are provided more quickly through rigorous, but less bureaucratic, decision-making processes – still allowing for the focus on individual exit routes and asset valuations.
This process allows for sensible lending decisions and otherwise inaccessible investment opportunities to be progressed.
COMPLEMENTING COMMERCIAL TERM LENDING
Whilst also a short-term alternative to term mortgages, bridging finance is also actively used to complement pre-arranged mortgages for commercial property and land completions.
SPEED OF TRANSACTIONS
Businesses and property developers are attracted to the speed of bridging funding. Whilst mortgages can take several months to be approved, the opportunity to receive funds quickly allow the borrower to secure the property whilst waiting for the long term funding to complete.
NEED FOR QUICK COMPLETION
The competitiveness of the sector means property developers need fast access to funds to take advantage of deals in an increasingly competitive market, often driven by competing bids.
With the bridging industry becoming more popular and lucrative, there are more brokers and lenders than ever before. This has driven a trend over the last 5 years to fund bridging loans through platforms that have lacked the experience of underwriting and exit monitoring, many of which have recently failed, driving restrictive changes in regulation. Propifi is founded on the core principles of experienced lending and property development, utilising multiple funding streams that create an agile and long-term solution for our borrowers; this focus continues to be our principle group cornerstone.
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