Bridging Finance sees annual growth of 25 per cent

Growth of 25% in the bridging finance industry has been achieved in the past 12 months, according to the latest Bridging Index.

Since June last year the annual rate of growth in gross bridging lending has averaged 25.1 per cent. By contrast, growth in the previous period was faster, but more volatile. Gross annual bridging lending in the UK now stands at a new record of £2.23 billion as of 1 September 2014.

Growth in bridging is being powered by both rising numbers of loans (up 23.2%) and by growth in loan size (up 15.9%). The average loan for the past year now sits at £497,000, up 15.9 per cent from £429,000 over the previous 12 months.

Loan-to-value ratios have, on average, increased slightly, but still stand below 50% LTV. Bridging loans are used for a variety of purposes, and borrowers are not always looking to raise as much finance as they can. Typically lenders are happy to lend up to 75% LTV.

Interest rates have averaged 1.17 per cent over the year to 1 September 2014. This is down slightly from a year ago. Vision Finance works with a large number of lenders, and bridging loan rates now start at 0.58% for large loans, and otherwise start at 0.65% per month. Lower interest rates are great news for borrowers, and the last 24 months have seen the majority of lenders reducing rates. As a bridging finance broker, we specialise in sourcing the best rates – ensuring that our clients have achieved the best deal possible.

 As one of London’s leading brokerages, Vision Finance has very close relationships with every major bridging finance lender, and as such can obtain the most competitive bridging rates for our clients. Please do give us a call on 0207 206 2500 to see what we can do for you. Alternatively email us at