UK Bridging Loans
2006
www.datamonitor.com/financial
A Datamonitor Report
Publication Date: Nov-06 Product Code: DMFS1957
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Bridging loans are short-term secured loans, which
are used under specific circumstances. Despite being
part of the UK mortgage market, bridging finance is
the 'unknown relative' of the sector. This report
provides an overview of the bridging loan sector in
the UK, covering market sizing, issues, competitive
trends and includes a 5-year forecast in terms of
gross advances
• Information about the size of the bridging loan sector is limited but one thing that is clear is that the sector is small. Estimates from the consultancy CIL put the size of the bridging loan market at £1.2 billion in terms of balances.
• The bridging loan industry has often been associated with a poor image. Indeed, the sector has received numerous criticisms in the past with regards to the prevailing high interest rates and the way some lenders operate.
• Undoubtedly, prices play an important role in the bridging loan market for differentiating one's products. However, how fast the bridging loan can be disbursed to the borrower is of utmost importance, given the circumstances under which a bridging loan is the suitable method of funding.
timely
UK Bridging Loans 2006 DMFS1957
• Short overview of the bridging Loans sector in the UK focusing on the
residential market
• Market sizing data relates to bridging finance for both residential and
commercial properties
• Provides a 5-year forecasts in terms of gross advances
Scope and coverage
Key findings and highlights
• Gain insight into the bridging finance sector in the UK
• Draw on Datamonitor's five-year scenario-based forecast to plan your future
strategy with confidence
Reasons to purchase
Reacting to the latest news breaking in your industry
Contact us...
From Europe: tel:
+44 20 7675 7000
fax:+44 20 7675 7016
email:[email protected]
From the US: tel:
+1 212 686 7400
fax:+1 646 365 3362
email:[email protected]
Table of contents
UK Bridging Loans 2006 DMFS1957
Hundreds of hours of analyst time distilled into a few pages
focused
Contact us...
From Europe: tel:
+44 20 7675 7000
fax:+44 20 7675 7016
email:[email protected]
From the US: tel:
+1 212 686 7400
fax:+1 646 365 3362
email:[email protected]
From Asia Pacific: tel:
+61 2 8705 6900
fax:+61 2 8705 6901
email:[email protected]
INTRODUCTION • Scope of the report • Who is the target reader? • How to use this report
THE BRIDGING LOAN MARKET IN CONTEXT • Introduction
• A bridging loan is a type of mortgage
- Bridging finance is a short-term funding method - A bridging loan carries a number of characteristics - Bridging finance can be used in a number of
situations
• The bridging loan market is small
- Bridging finance is estimated to account for £1.2 billion in balances outstanding and £2.5 billion in gross advances
- Despite reportedly seeing significant growth, the market remains constrained by a number of factors
• Gross advances in the bridging loan sector will reach £5.6 billion in 2010
- The bridging loan sector will account for 1.7 per cent of total residential mortgage gross advances in 2010
COMPETITIVE DYNAMICS • Introduction
• Specialist lenders are the dominant players in bridging finance
- Specialist lenders account for 65 per cent of new business
- Few major high street lenders operate in the bridging loan industry
• Lenders differentiate their products based on rapidity
- Many specialist lenders provide case studies to illustrate their rapid service
- Providing a fast service to intermediaries also plays an important part in lenders' strategies
APPENDIX
TABLES
Table 1: Examples of interest rates offered by a sample of specialist bridging loan lenders, July 2006 Table 2: Forecast gross advances for bridging loans,
2005, 2006f-2010f
Table 3: Only a handful of major mainstream lenders offer bridging loans, July 2006
FIGURES
Figure 1: Examples of transactions where bridging loans have been involved, July 2006
Figure 2: Cheval Property Finance's own code of conduct, July 2006
Figure 3: The bridging loan sector will double its market share of residential mortgage gross advances by 2010, 2006-2010f
Figure 4: Specialist lenders control 65 per cent of the bridging finance sector
Figure 5: Lenders' case studies focuses on how fast they can complete the bridging loan transaction, July 2006
Figure 6: The UK Mortgage Market Map 2006 covers a wide range of mortgage sectors
Figure 7: Taxonomy of UK Mortgage Market Map 2006 Figure 8: Datamonitor's core consulting capabilities
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UK Bridging Loans 2006 DMFS1957
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From Europe: tel:
+44 20 7675 7000
fax:+44 20 7675 7016
email:[email protected]
From the US: tel:
+1 212 686 7400
fax:+1 646 365 3362
email:[email protected]
From Asia Pacific: tel:
+61 2 8705 6900
fax:+61 2 8705 6901
email:[email protected]
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