With business stronger than ever and with average lending enquiry exceeding £1million each week for Merseyside-based Bridging Finance Solutions, the company has revealed how it is lending around 70% of its short term loan to borrowers within the North and North West.
Historically, Bridging Finance Solutions customers have spanned the UK, yet the past 12 months has seen an upsurge in Northern applications for bridging, a trend that the company is welcoming.
Steve Barber, Managing Director of Bridging Finance Solutions said: “A number of bridging companies have a strong appetite to lend in the South East, where the market has seen some significant recent gains as foreign investors continue to plough money into both the residential and commercial property markets.”
“As the South East property market improves, history tells us that the rest of the country will follow in differing degrees, however, return on investments on property in the North can often be far higher than those in the South. It is largely for this reason that we have seen a significant upsurge in applications in the North. For example, a house purchased for £70,000 (a typical house price for a three bedroom terrace in most major Northern cities) can realise a rental of around £500 each month, offering a yield of around 8.5%. Returns such as this can rarely be made in the Southern property market as property capital values far outweigh the increase in rental yield.”
Steve added: “We remain a nation al bridging finance company but one that recognises that with an established track record north of Birmingham, perhaps going against the grain and continuing to increase lending in the North will give our clients and brokers the certainty and confidence as business, demand and turnover grows.”