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Both the bridging and term mortgage sectors have experienced a period of growth, with the Council of Mortgage Lenders (CML) reporting that gross residential mortgage lending reached £15.5 billion in January 2014, 33% higher than January 2013.

The Association of Bridging Professionals (AOBP) has also reported a period of growth in the bridging sector and in its ‘February 2014 Bridging Market Trend Report’ stated that the sector continues to develop, with an increase in commercial transactions taking place and an improvement in average LTV rates being achieved.

Clearly, the growth that has taken place in the property lending market demonstrates that bridging finance is an integral part of the funding options being utilised by property professionals to exploit property investment opportunities. Bridging lenders are increasingly supporting borrowers and their broker advisers through the regular introduction of new initiatives, such as the launch of structured products, the widening of geographical lending locations and an increase in lending limits. Each of these initiatives has helped facilitate the ongoing growth of the bridging sector, which is being underpinned by the ongoing growth in competition, thus fulfilling the demands of both the broker and borrower communities.

Whilst there has been an identifiable growth in lending activity, there remains some in-balance in lender activity. It is evident that some lenders continue to be reluctant to lend outside of London and the South, whilst other lenders are faced with restrictions in funding capacity. This is not the case for Bridgebank Capital. We have always been a whole of market lender, lending across the whole of the UK. As Bridgebank Capital is part owned and funded by a substantial institutional asset manager and investment house, we have been able to announce that we have removed our lending limits and have a huge appetite to lend, including larger loans.

The upturn in the bridging and long term mortgage sector has seen the emergence of a series of new industry bodies, including the establishment of the packager collective ‘Equis’. Bridgebank Capital welcomes the formation of Equis, which has been created by industry leading packagers: Brightstar Financial, All Types of Mortgages, Complete FS and Solent Mortgage Services, in order to establish a best practice framework for lenders, brokers and their borrowers. The presence of this body will assist in streamlining deal flow within the short term and long term mortgage sectors, whilst assisting all parties in conforming with the forthcoming FCA regulations. The introduction of such innovative and forward thinking bodies will assist in the further growth and progression of both the bridging and term mortgage sectors.

It is promising to see key figures within the industry working together, sharing best practice. Only through honest, transparent relationships is success possible and achievable. Bridgebank Capital is committed to working closely with brokers to understand how together we can fulfil both the brokers and their borrower’s expectations and requirements.

The bridging sector has clearly undergone significant growth which has been underpinned by the innovation and commitment by those active in the sector. It is envisaged that the growth achieved to date will continue, and further initiatives will be introduced into the sector which will only assist in additional growth.

Steve Woods is head of sales at Bridgebank Capital

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