Richard Butler Creagh Shares Bridging Finance Market Trends

Welcome to the Richard Butler Creagh blog. Richard Butler Creagh has been in the bridging lending business for many years. The bridging finance market has been relatively stable in the past year. The majority of the security is where our first charge which suggests that the more borrowers preferred to have a speedy transaction when securing the investment securing the entire project what a bridging finance lender. Often this type of finance provided has a depth of experience when it comes to property developments and this is another aspect of the bridging finance which gives it a cooperative edge over their competitors in the mainstream market. Often borrowers who come to Henley Finance appreciate the expertise and the market knowledge the team offers just in case this is needed.

Generally, the market does unregulated Bridging Finance which essentially is for the purposes of so-called flips, buying-renovating-selling. However, there are other means in which this type of financing used and those are auction houses, general business purposes secured against property, refurbishment, refinancing of another bridging loan and interestingly mortgage delays. The ultimate aim of any investment is to get value added to the property or business proposal for the purpose of obtaining profit. However, in some unfortunate scenarios where the mainstream lender does not live up to the expectations and delay any refinancing, the bridging finance comes to help. With the changes in law and more enhanced due diligence checks often there is more red-tape than expected which causes delays.

Perhaps the most interesting aspect of market trends was the average completion for a bridging finance application was just over a month. This is significantly lower than an average application for a bank which can take several months. This no doubt creates an excessive market for bridging finance. Henley Finance in an even smaller niche, where are often able to do valuation within 24h and a drawdown shortly after. This unique approach which is personalized manner enables us to be the market leader.

With the uncertain Brexit times and more changes happening the UK government one might think that bridging finance market will suffer yet it is quite the opposite. With the increasing uncertainty, the Banks are more difficult to finance with and therefore the bridging finance takes over the market share of financing business where time is important but not urgent. Often entrepreneurs will make a decision to go with more expensive financing which will be available quicker because of opportunity cost and cost associated with lack of funding etc.

Find out more about Henley Finance on the Richard Butler Creagh website here. Like the Richard Butler Creagh facebook page here for his latest news and updates in bridging finance.