News of a Bridging Lender reducing the maximum loan it now offers
Today one of the UK's biggest non-status bridging lenders has announced that the maximum loan now offered is just £250k!
Evidence of further Credit Tightening in the Market Place!
In the bridging lenders news release it stated that it is still lending, but "activity levels are significantly down on previous years".
The reason given for the reduction is that the change reflects the fact that mortgage borrowers now need a deposit of at least 35%-40% of any transaction. This is in our opinion a fair reflection of the market however a limit of £250k means that a significant minority of potential borrowers are now excluded from this lenders funds. One potential reason for this announcement could be to limit exposure to any one individual case.
The good news is that for anyone seeking short term property funding over this level, bridging loan funds are still available and against open market value. However with the Bank of Englands gloomy forecast for the rest of 2009 we expect further reductions elsewhere in the not too distant future.
- ‹ previous
- 5 of 21
- next ›
Return to our Bridging Loan Blog
- Brokers and Up Front Fees
- New Funding Line For Property Developers
- A New Property Development Finance Product
- Property Development Finance
- Another Bridging Lender Bites The Dust
- A New Lender Enters The Bridging Marketplace
- Bridging Market End of Year Update
- Bridging Lender Offers Buy To Let Mortgages
- Major Bridging Lender Falls Into Administration
- Decline in bridging finance lending confirmed