“Bridging finance is built on flexibility and speed. With so many landlords selling up, it’s a buyers’ market at the moment, but opportunities may not stick around for long”
– Karen Rodrigues – Market Financial Solutions
PR: How are landlords using bridging finance in today’s market, and what types of projects are proving most popular?
KR: We’re seeing a lot of demand for acquisition loans at the moment. Many landlords are selling up in the face of the market’s challenges, but what’s underreported is that there are many expanding landlords who are looking to take advantage of this.
As more stock comes to the market, often at a discount, buyers are keen to secure it quickly. Often, we find they’re after the higher-yielding assets such as HMOs.
Also, with EPC changes quickly approaching, many landlords are reaching out to us for refurbishment or renovation finance. They are keen to spruce up their homes to ensure they keep on the right side of the rules.
PR: What should property investors be aware of when comparing bridging lenders, and what are the key terms they should look out for?
KR: In this market, we think it’s crucial to be as open as possible from as early as possible in the process. Few can afford not to know where they stand, which is why underwrite from day one of an enquiry. It’s important for borrowers to know exactly what fees and charges will be involved, what repayment options are available to them, and whether their lender will actually be able to accommodate their personal circumstances.
PR: How has demand for bridging changed over the past 12 months, and what’s driving that shift?
KR: Arguably, we’d say the last general election and its fallout have had the biggest impact on bridging demand over the last year or so. A new government brings with it new priorities and policies, and we’ve seen property investors utilise specialist finance to adjust to their new reality.
This has taken shape in a few different ways. Many have turned to us for refinancing to get their affairs in order ahead of any dramatic shifts in legislation or economic outlook. Also, with heightened focus on EPC requirements and the looming Renters’ Rights Bill, we’ve seen rising demand for loans for greener new builds and the aforementioned refurbishment projects.
PR: In what scenarios can bridging finance offer landlords a competitive advantage, especially in a high-rate or fast-moving market?
KR: Bridging finance is built on flexibility and speed. With so many landlords selling up, it’s a buyers’ market at the moment, but opportunities may not stick around for long. Competition remains fierce, and those who can move quickly will have an edge over their rivals.
Even now, we can have finance delivered in mere days where everything lines up, allowing landlords to lock in those opportunities they’re keen to jump on.
PR: What’s your outlook for the bridging sector in 2025, and how do you see investor demand evolving?
The 2nd half of 2025 is set to bring with it both uncertainty and profound change. The Renters’ Rights Bill will completely upend the BTL market, and the ongoing risks of global tariffs and geopolitical conflict will be on everyone’s minds, from first-time buyers, all the way through to the Bank of England.
With all this on the horizon, property investors will likely be desperate for any certainty they can find, and the bridging sector can offer just that.
Our sector can adapt to challenging circumstances, arguably more so than mainstream lenders, and we believe investors will seek out that flexibility over the coming months.
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