Of the many trends that have taken shape in the bridging industry throughout 2021, the increased demand for large loans is one of the more interesting.At Market Financial Solutions (MFS) we have seen a notable rise in the number of clients (or their brokers) reaching out in need of loans totalling more than £4 million.
There are numerous reasons for this trend. First and foremost, demand for property purchases, whether among first-time homebuyers or seasoned investors, has risen sharply since mid-2020.As such, it stands to reason that demand for large loans would also increase – typically these are required among those buying luxury homes.
The sheer demand for bricks and mortar investments is perhaps best reflected in the upward march in property prices over the past year. According to the Office for National Statistics, the UK’s average house prices rose by 11.8% in the year to September 2021.
This double-digital annual growth isall the more significant because it was occurring at the same time as the stamp duty holiday was tapering out.Indeed, even since the stamp duty holiday ended on 30 September, MFS has seen little let up in demand among property investors.
We have also seen a greater number of clients considering commercial and semi-commercial real estate. Many premises have been left vacant due to the pandemic, and some commercial landlords have taken the opportunity to sell assets and recalibrate their portfolios – opening the door to new buyers.
The above are just a handful of the reasons why large loans have become highly sought after. Property development and renovation projects, as well as refinancing cases, are other common reasons.
What matters is that the buyers requiring large loans can find the best possible lender to meet their needs. MFSare specialists in complex cases and large bridging loans; something that has come to the fore in 2021, with many examples of large deals being completed, while we have also expanded our maximum loan amount to £30 million and above.
With extremely strong funding lines and experienced underwriters, MFS is perfectly placed to assist brokers and clients with multi-million-pound bridging loans. We expect this to remain a prominent trend in 2022, and we are ready to embrace the challenges and ensure our clients can act with speed and confidence.
Market Financial Solutions (MFS) is a London-based bridging loan provider. Prior to establishing MFS in 2006, Paresh worked as a senior professional consultant in one of the top five management consultancy firms, and also set up an independent investment group.