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Opportunity Knocks | The Sensational Rise of Specialist Lending | 2023

Opportunity Knocks

Opportunity Knocks

 

Specialised financial solutions are gaining more attention in the continuously changing financial sector. Many borrowers face strict requirements from traditional lenders, prompting them to explore alternative options. In this demanding financial environment, one specific type of specialist finance stands out: bridging finance.

We are well-versed in this topic, as it has been extensively discussed in our blog section dedicated to bridging loans. Opportunity Knocks for borrowers seeking flexible and swift financing solutions, as noted by Sonia Mann, head of field sales at Roma Finance, and Paula Purdy, head of sales at UTB Bridging Finance (United Trust Bank), among other industry experts.

 

Meeting the unmet needs

 

Borrowers have typically relied on traditional financial institutions for financing for many years. Nevertheless, as the economic landscape continues to shift and change, there are moments when adhering to the stringent requirements of mainstream lenders becomes increasingly challenging. Opportunity Knocks. This situation results in a noteworthy gap in the market, leaving those who are temporarily unable to secure loans through conventional means in a financial quandary. This is precisely where specialist finance solutions come to the rescue.

In such dynamic economic conditions, these specialised financial offerings fill the void left by traditional lenders. Opportunity Knocks. They provide a lifeline to individuals and businesses grappling with the evolving financial terrain. One particular form of specialist finance, bridging finance, has emerged as a beacon of hope for those needing quick, flexible, and tailored financing solutions.

Our blog category on Bridging loans extensively covers the ins and outs of this specialised financial instrument. It’s a valuable resource for anyone looking to delve deeper into the world of bridging finance and discover how it can effectively bridge the gap in their financial journey.

 

The history of bridging finance

 

To understand the emergence of bridging finance, we need to go back to the inception of the bridging loan market, which can be traced back to its origins. Two decades ago, this market was in its fledgling stages, characterised by a handful of lenders operating within a niche sector. However, fast forward to today, and the landscape of the bridging market has undergone a profound transformation, expanding beyond all previous boundaries.

Going as far back as the 1960s, short-term financing solutions resembling contemporary bridging loans were available. These offerings, however, were typically extended by established high-street banks and building societies to their existing clientele. It was not until the pivotal moment of the 2008 credit crunch that the bridging market experienced a revolutionary shift.

As the demand for bridging finance soared, it sparked a corresponding surge in the number of lenders entering the field. Consequently, the bridging industry experienced a remarkable expansion, with fresh lenders entering the scene every month.

In a period when investment returns were disappointingly low, individuals with available funds found the prospects of lending to the bridging market highly appealing. With typical market returns hovering around a mere 1%, the potential to earn well over 18% through bridging loans became an irresistible magnet for a wave of new investors, further bolstering the sector’s rapid growth.

Opportunity knocks on the doors of those willing to embrace this dynamic sector. The majority of these recent entrants in the market primarily focused on unregulated activities. This primarily encompassed commercial lending, coinciding with a surge in individuals purchasing and renovating residential properties for subsequent sale or rental purposes.

 

Why bridging finance shines today 

 

When addressing critical questions, generating a response that offers clarity and contentment is crucial. Opportunity Knocks: Case in point, bridging loans is a dynamic solution in situations where timely actions can spell the difference between triumph and defeat. These loans offer swiftness and adaptability to individuals and businesses alike. Whether you are a savvy investor pursuing a time-critical real estate transaction or a homeowner needing rapid funds for home improvements, bridging finance shines today due to several key factors:

  • Flexibility: Unlike traditional lenders, bridging finance providers are known for their flexibility. They understand that borrowers may be in unique and time-sensitive situations that require swift and adaptable financial solutions. Whether it’s acquiring a new property, refurbishing an existing one, or addressing short-term financial gaps, bridging finance fills these voids.
  • Speed: In today’s fast-paced world, timing is everything. Opportunity knocks and bridging finance offers expedited approval and funding processes, often outpacing traditional lending institutions. This speed ensures that borrowers can capitalise on opportunities as they arise, securing their financial interests without delay.
  • Diverse Scenarios: Bridging finance is not limited to one specific use case. It caters to various scenarios, such as property acquisition, auction purchases, refurbishment projects, and even helping those needing a financial bridge while waiting for long-term financing. This adaptability is a testament to the versatility of specialist finance.
  • Accessibility: As more borrowers become aware of the availability and accessibility of specialist finance, bridging loans are becoming an increasingly attractive option. Specialist finance providers are working hard to streamline their application processes, making it easier for borrowers to access these vital resources.
  • Expertise: The bridging finance sector comprises experts who understand their field’s nuances and challenges. Their industry knowledge allows them to provide customised solutions that align with borrowers’ unique circumstances.

 

A future ahead

 

The rising prominence of specialist finance, particularly in the form of bridging finance, is a testament to the resilience and adaptability of the financial sector. As borrowers grapple with the ever-evolving financial landscapes, the importance of accessing specialised solutions becomes increasingly evident.

Undoubtedly, this is an exciting time for those engaged in the specialist finance sector. This field’s continuous growth and diversification open the door to innovation, creating opportunities for providers and borrowers alike. Opportunity knocks as demand surges, and specialist finance providers are positioned to shine, extending a much-needed lifeline to those in critical need. This marks a new era in the world of finance, where flexibility, speed, and adaptability are the prevailing attributes, with bridging finance leading the way in this transformative financial revolution.

There might come a time when Bridging finance levels experience a temporary lull as the mainstream market stabilises, showcasing the inherent unpredictability of interest rates, which can be both a source of fascination and frustration for borrowers and lenders alike. This ebb and flow in bridging activity highlights the financial sector’s constant adaptability, where it adjusts to the ever-changing economic landscape, demonstrating the need for flexible solutions that can weather the storms of market fluctuations. Opportunity Knocks

 

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Liz Syms

(CeMAP)

About the Author

Liz Syms is the CEO and Founder of Connect Mortgages, a specialist in finance for property investment. With over 25 years of experience in mortgages and financial services, Liz has helped countless people get their dream homes and investment properties. She is passionate about giving her clients the best advice possible when it comes to financial decisions relating to mortgages and protection and is dedicated to providing the highest quality of service. With her wealth of knowledge in the industry, Liz is a respected leader in mortgages and financial services and has grown her team to over 300 advisers nationally. She strives to make Connect Mortgages one of the most successful companies in its field.

About the Author

Liz Syms is the CEO and Founder of Connect Mortgages, a specialist in finance for property investment. With over 25 years of experience in mortgages and financial services, Liz has helped countless people get their dream homes and investment properties. She is passionate about giving her clients the best advice possible when it comes to financial decisions relating to mortgages and protection and is dedicated to providing the highest quality of service. With her wealth of knowledge in the industry, Liz is a respected leader in mortgages and financial services and has grown her team to over 300 advisers nationally. She strives to make Connect Mortgages one of the most successful companies in its field.

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