The industry of bridging loans UK - the future looks great. While it's obvious that the residential bridging loan services market has a limited size - and we may be close to it maximum present limit - a sector well worth more than £1bn a year cannot be ignored.
Acquiring bridging finance and associated short-term refurbishment loans offer property developers and investors an alternative as well as innovative option in addition to providing much-needed liquidity at a time when bank loans remain constrained.
A very important indication of this is how the offered bridging loan rates have gone down lately. From 1.38% in the 1st quarter of 2012, the average monthly rate has fallen to 1.24% in the same period for 2013.
This is caused by many reasons. First, higher competition has had an impact on bridging loans pricing online. Second, more property investors have been inclined to getting a property bridging loan at Omni Capital, which encourages an influx of cheaper money. And third, brokers are now more skillful at understanding loan companies’ appetite for risks: as deal quality improves, so prices can move downwards.
But lower rates of interest haven't discouraged new property investors that seek attractive returns from the property development finance asset class at http://www.omnicapital.co.uk/products/. Without a doubt, the ongoing influx of new property investors is a testament to the continuing appeal of business bridging loan when other investment classes provide weak or unreliable prospects.
Relatively high return rates, improving credit quality picture and rising standards of behaviour will make sure that this favourable position continues for the foreseeable future. While not ideal for all borrowing scenarios, a bridge loan could be the perfect financial solution for property professionals rejected elsewhere.
Acquiring bridging finance and associated short-term refurbishment loans offer property developers and investors an alternative as well as innovative option in addition to providing much-needed liquidity at a time when bank loans remain constrained.
A very important indication of this is how the offered bridging loan rates have gone down lately. From 1.38% in the 1st quarter of 2012, the average monthly rate has fallen to 1.24% in the same period for 2013.
This is caused by many reasons. First, higher competition has had an impact on bridging loans pricing online. Second, more property investors have been inclined to getting a property bridging loan at Omni Capital, which encourages an influx of cheaper money. And third, brokers are now more skillful at understanding loan companies’ appetite for risks: as deal quality improves, so prices can move downwards.
But lower rates of interest haven't discouraged new property investors that seek attractive returns from the property development finance asset class at http://www.omnicapital.co.uk/products/. Without a doubt, the ongoing influx of new property investors is a testament to the continuing appeal of business bridging loan when other investment classes provide weak or unreliable prospects.
Relatively high return rates, improving credit quality picture and rising standards of behaviour will make sure that this favourable position continues for the foreseeable future. While not ideal for all borrowing scenarios, a bridge loan could be the perfect financial solution for property professionals rejected elsewhere.
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