Narinder Khattoare, Sales Director at Alpha Bridging, said due to the lengthy and increasing requirements for conventional commercial funding, buyers were opting to secure purchases through bridging finance before switching to a long-term solution.
“We know that the increasing popularity of auctions and the growing number of properties bought at auction helped the regulated bridging sector achieve its continuing upsurge in popularity last year,” said Narinder.
“Also, from the evidence we are seeing, because conventional first charge lenders are still taking a particularly rigorous stance when underwriting and the time taken to offer can suffer, more buyers and their brokers are turning to bridging as their first port of call in order to make sure the sale goes through in the right timeframe.”
Alpha reported a 57% jump in enquiry and applications numbers in January, and last month it said the main reason behind the growth in bridging was down to additional backing from support channels.
“Increasing enquiry levels for bridging finance for purchase as well as other business purposes is certainly helping to power Alpha Bridging’s new business success,” added Narinder.
“Bridging finance is proving to be extremely adaptable and resilient and acts as a perfect foil to the wider lending market.”
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