Bridging market still buoyant despite turbulence

Despite the recent economic turbulence, the bridging market has seen more requests for fast, short-term finance.

This type of finance provides certainty of funds for opportunities which may involve additional complexities like down valuations, where bridging can allow an applicant to offer another property as security by way of second charge to find extra funds.

Tanya Elmaz, director of intermediary sales for commercial finance at Together, said:  "Landlords and investors alike are still looking for ways to increase their yield. Properties in need of refurbishment continue to be a high priority, as do those which can be turned into a House in Multiple Occupation (HMO), a Multi-Unit Block (MUFB), or extended to add significant square footage.

“We’ll also see investors using bridging finance to convert commercial and semi-commercial properties as more of these buildings become vacant due to businesses and building owners selling up.

“We’re seeing landlords move away from traditional buy-to-let properties where it’s becoming increasingly difficult to achieve a great yield because of factors such as rising rates and changes to tax, and they will be seeking opportunities across a variety of asset classes and property types.

“Bridging finance can also be advantageous for businesses who need a short-term solution to a cash flow problem, to consolidate good debt, or to seize growth opportunities. We’re definitely seeing an increase in these types of cases at the moment.”