Bridging Industry Analysis

June 21, 2016

Looking back at the bridging sector after the EU referendum

On the eve of the European referendum, we reflect on where the industry lies at the moment, and what may be in store for the future

Now that the economy is moving again, and the property market is beginning to flourish, investors are eagerly seeking alternative means to grow their capital, outwith the dismal options that can be found in the banks. This increased flow of capital, in combination with an energized property market, means that the bridging finance sector is set to continue its exciting period of expansion.

However, there is no doubt, the bridging loan market is maturing in a similar way to the mortgage market did in the 1990’s. Whereas before, the bridging loan sector was a mix of lenders offering broadly similar products, there now appears to be some specialization and delineation within the industry, with no one size fits all approach.

The biggest difference is the gradual split between the short term mortgage market, with some mainstream firms, offering highly competitive, yet difficult to get, medium term mortgages of up to 24 months; and the niche bridging finance providers like at Tiger Financial, where we offer short term property loans for a broad range of property asset classes.

With a network of high net worth investors, family offices and a select group of hedge funds, entrepreneurial companies like us at Tiger Financial, are able to offer bespoke bridging finance solutions, tailor made to the exact requirements of each client. With no set criteria, and our old fashioned, pragmatic way of analyzing each proposal, we can fund deals that would otherwise have been rejected by mainstream bridging finance companies. Matthew Dailly says: “With a property finance market of some £220billion, of which only £3billion is made up of bridging loans, we believe there is an exciting future ahead within the niche bridging finance sector.”