"A product which does what it says on the tin, that can be applied for and completed within a swift timeframe and offers complete clarity from the outset can present a huge appeal for property investors"
The bridging lending market is fighting fit. According to the Bridging & Development Lenders Association (BDLA), loan books reached a record high of just over £9bn in the third quarter of this year, with application and completion volumes growing in the second quarter of 2024.
Our experience of the year so far shows a continuation of this, as the market has felt busier since the summer and lenders are competing hard for their share of this growing market, often based on their willingness to flexibly underwrite cases and adapt to the individual needs of each borrower.
When off-the-shelf works in a bespoke market
However, as the specialist property finance market matures, gathers pace and broadens its outreach beyond those brokers who specialise in the quirkier end of the property market, the case for a wider range of bridging products has grown, including products that are more rigid in their criteria.
For example, a product which does what it says on the tin, that can be applied for and completed within a swift timeframe and offers complete clarity from the outset can present a huge appeal for property investors, particularly if it is available for certain refurbishment projects.
When borrowers seek out bridging finance, whatever the purpose, brokers can benefit from products that can offer them a set rate and a high degree of certainty. This means that before applying, a broker can give their client a clear idea about how much the deal might cost, helping them to understand whether or not their investment is likely to be profitable.
Flexibility is of course integral to a lot of bridging. However, some cases don’t need to take advantage of that broad criteria range, so being able to offer a lower-rate product to those clients who are on the more straightforward side of bridging makes sense.
Finishing the ‘jigsaw’
A couple of months ago, KSEYE launched a new low-rate Lite bridging range supported by some interesting criteria, including a willingness to offer loans to foreign national applicants applying within a UK limited company tax wrapper.
The product covers residential, commercial and mixed-use bridging products for properties in London and the home counties. Properties need to be habitable at the outset, so with a working kitchen and bathroom, and the product can be used for refurbishments of up to £75,000 or 10% of the property value – whichever is higher.
With transparent rates across different LTVs, and a faster underwriting process due to the products’ criteria, our Lite bridging range offers a quicker, more straightforward loan process for the client.
Rates are published at the outset and as we are aware that speed and efficiency are likely to be the most important drivers for this time of finance, we can complete our Lite bridging loans in around 2 weeks, far quicker than the average bridging loan across the industry which is pushing 6 weeks.
We introduced this new product range in response to the high volume of enquiries we have received so far in 2024 and identifying a need for a more predictable bridging loan product, with competitive upfront pricing. We’re hoping to get the message out to as many brokers as possible that there is a case for off-the-shelf bridging.
