The financial ‘squeeze’ has brought short term secured lending well and truly into the mainstream. Bridging loans have almost become the go-to loan of choice resulting in the rapid expansion of a number of lenders. It’s nothing new, but the sector has benefited from an increase in understanding and awareness amongst everyday people like you and I.

The flexibility of short term lending is the real pull for clients. Consider the range of options on offer. Advances from £10,000 up to £20,000,000 or more, terms from one month to 36 months and rates from just 0.59% up to 2% plus. This should be surprising given how difficult the traditional routes of funding are.

In addition, security can include land, commercial, buy-to-let, and just about any legal title imaginable. The borrower might be an individual, a limited company, a limited liability partnership or offshore trust, and with income evidence not required, adverse credit not a problem and speedy turnarounds - flexibility has well and truly become the preserve of the bridging loan lender.

However, it is also important to remember that this level of service will only come from an experienced bridging lender who can actually deliver.

Moving into 2016 may sort the wheat from the chaff, especially as the economy improves, because we may see the banks willing to take more risks and tentatively becoming more involved.

We might also see more peer-to-peer lenders aggressively marketing directly to clients; maybe mainstream lending such as ‘light refurb mortgages’ will take a bigger share; and there is also potential for the development of specialist bridging brokers tying in with the loan aggregators in much the same way that the secured loan market has.

But for the record, my view is that bridging finance is a very unique product with an infinite number of scenarios and potential outcomes unique to every application.

2016 will bring even greater challenges and potentially we will see some consolidation both in bridging lenders and those dedicated to broking. Margins are likely to be squeezed but bigger, stronger players will emerge with those prepared to spend the time thoroughly researching the market, forming strong partnerships and grasping the regulatory ‘nettle’ prospering.

What is certain is that of all the specialist areas of finance, bridging will continue to need the expertise offered by the best intermediaries.

Attributed to Ian Broadbent, Director of Holme Finance and Bridging Solutions