- 71% of brokers surveyed said that awareness of bridging finance is growing
- 51% said they are seeing an increase in bridging customers
- 35% report seeing more bridging cases that in the past would have gone to a high street lender
New research from Masthaven Bank
has found that the pandemic has fuelled an increase in customers looking for bridging products, as awareness of bridging finance continues to grow. The survey of 140 brokers found that seven in ten (71%) say that awareness of bridging finance is growing across the market. Over half (51%) say that they’re seeing more customers come to them for bridging finance, with just 3% reporting a decrease.
A lot of this growing interest in bridging products is focused on the specialist lending market. Over a third of brokers (35%) report seeing more cases that, in the past, would have gone to a high street lender instead.
When asked about what is currently fuelling this boom in bridging finance, brokers cited a number of key factors. The pandemic has caused notable disruption to the housing market and 41% of brokers said that chain breaks and mortgage delays were the most important reasons that drove customers to look for bridging finance. There’s also been a boom in DIY and refurbishments, which just over a third (34%) of brokers cited as the main reason. These were followed by: borrowers buying at auction (28%), borrowers looking to raise capital (19%), and borrowers looking to re-bridge (11%).
Richard Deacon, Sales Director at Masthaven, said:
“The pandemic has proved uniquely stressful and disruptive for the UK housing market, even while property prices and transaction levels have climbed to new highs. Bridging finance has always been a useful tool, but in the current market it has really come into its own, growing in popularity as both brokers and borrowers look for flexible short-term finance solutions. Increasingly, these solutions have come from the specialist sector, which has worked hard to innovate and provide customers with the right tools to navigate this busy period.
“The factors pushing borrowers towards bridging may have been boosted by the pandemic, but they’re not going away any time soon. Bridging finance is no longer just an emergency option for borrowers, it has become truly mainstream. As awareness of the power and utility of bridging continues to grow, it will be increasingly important that lenders work hard to make their products competitive and accessible.”
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About the research
This research was conducted by Masthaven in November 2021, with 140 individuals working within the specialist lending industry. Respondents were asked questions regarding thoughts on the bridging market and direction their company will be moving in over the next twelve months.
About Masthaven Bank
Masthaven launched as a retail bank in 2016 and offers award-winning saving and lending products. Prior to that, Masthaven Finance has provided a flexible and personalised approach to bridging loans and secured lending since 2004.
Today, the bank’s knowledgeable and experienced specialists are committed to providing customers with flexible and fixed term savings accounts, bridging loans, development finance and mortgages.
Masthaven was recognised as Specialist Lender of the Year (Southern Regions) in the 2021 MoneyAge Mortgage Awards. In 2020 the bank was named the Most Innovative Digital Retail Bank UK by CFI, the third consecutive win for the category. Masthaven won Best Second Charge Mortgage Lender in the Your Mortgage Awards 2018/19 and Customer Service of the Year in the Money Age Mortgage Awards in 2019. It was also awarded Best Specialist Lender in the Moneynet Personal Finance Awards 2019.
Masthaven Finance has featured in 2015’s The Sunday Times’ Virgin Fast Track 100 (at number 81) and the bank ranked 240 in Financial Times’ FT1000 list published in 2017. In 2020 it featured in Forbes as one of the top 10 fastest growing companies in the UK.
The bank is regulated by the Financial Conduct Authority and Prudential Regulation Authority.