CashNews.co
Investment purchases accounted for the largest share of bridging loan uses in Q3, climbing from 18% in Q2 to 24%.
“The rise in investment purchases to 24% of total lending suggests growing confidence among property investors,” noted Gareth Lewis (pictured centre), managing director at MT Finance. “These figures illustrate a robust and efficient bridging finance sector meeting borrowers’ evolving needs.”
Demand for both regulated and unregulated refinance also saw substantial growth. Regulated refinance jumped from 6% to 14% of the market, while unregulated refinance rose from 6% to 13%. The drop in chain-break loans suggests a more stable property market, with fewer disruptions impacting transactions.
According to Knowledge Bank, regulated bridging remained the most-searched criterion among brokers, highlighting the continued importance of this funding option for borrowers. First charge loans increased from 88.4% in Q2 to 91% in Q3, while second charge loans dropped to 8%. The average loan-to-value (LTV) ratio edged down slightly, from 59.3% in Q2 to 56.8%, while average loan terms remained steady at 12 months for the 12th consecutive quarter.
“Regulated bridging, minimum loan amount, and maximum LTV remain the top searches,” said Shane Chawatama (pictured right), sales director at Knowledge Bank. “Increased interest in second charge bridging and adverse credit options reflects the market’s focus on flexibility amid ongoing economic uncertainty,” he said.