Bridging Loans lends out nearly £4bn in 2018
In the last 12 months, it has been reported by the Association of Shirt Term Lending (ASTL) that the bridging loans industry has collectively lent a whopping £3.98bn.
This figure is 21% over the last year. However, the second has seen a slight contraction in the third quarter of 2018 compared the three months preceding that. The value of the loans written and applicants were down 0.6% and 3.3% respectively.
When you compare this to the same quarter of last years, the value of loans written in the quarter increased by 12.6%. Speaking in annual terms, applications were also up by 8.9% compared to the year which ended in September of 2017 - this totals up to £20.5bn.
It was noted by the ASTL that although applications did tend to be unreliable indicators and were dependent on how many lenders were offered the same deals, it did actually highlight how large the sector had become.
Loan books up
If you total up the loan book value, it appears to have continued to climb with a rise of 2.1% compared to Q2 and an increase of 16.6% at the same point, but last year.
The CEO of ASTL, Benson Hersch, said Figures for Q3 2018 show an ongoing year-on-year upward trend. Our members continue to provide flexible and useful services to customers who require finance for a whole range of purposes. Despite current political and economic uncertainties, lenders are very much doing business as usual.”
What is a bridging loan?
Bridging Loans are short-term loans which are designed to ‘bridge’ the gap found between a debt coming due and the main line of credit becoming available. In addition, they can also be used to simply act as a more general short-term loan in certain, pressing circumstances.
Bridging loans may be invaluable in helping an individual to make a property purchase that they would other not be able to be possible. For example, if someone cannot get a mortgage in place and they need to purchase the property now, a bridging loan would help to facilitate this.
The loans are essentially designed to help people complete a purchase of a property before they sell their existing home by offering the people access in the short-term to money at a high rate of interest.
Some people have started viewing bridging loans as a simple alternative to mainstream lending. While a bridging loan may sound like a tempting option in this capacity, before you take one out you should think about your strategy. If you are treating bridging loans in a traditional way, this might be, for example, getting a mainstream mortgage or a buy to let mortgage, or selling the property altogether.
Who are bridging loans aimed at?
Typically, bridging loans London and UK are aimed at landlords and amateur property developers. This includes those who are purchasing at auction where a mortgage is needed quickly.
They are often aimed at wealthy or asset-rich borrowers who want a straightforward lending method for residential properties.
Who are Octagon Capital?
Here at Octagon Capital, we are a licensed broker which aims to help you to compare bridging loans in the UK. These loans can range from £50,000 to £25 million.
In terms of your application, we have partnered with SPF Short Term Finance, a team of bridging loan brokers, in order to process any application you submit. You can apply online and an advisor from the SPF Short Term Finance team will be directly in touch with you shortly about the status of your application. If you please, you can call us for a quote today on 0333 414 1491. We are open Monday-Friday from 9am to 6pm.
Ealing uses shipping containers to help housing crisis
With more than 250,000 homeless in the UK and the housing crisis always a pressing issue for the Mayor of London, one council has taken measures into its own hands to solve the crisis. The answer? Modular Housing.
The Ealing Council has erected a number of shipping containers to house 80 homeless people in Marston Court, Ealing. Whilst the idea of living in a shipping container does not sound very glamours, with the help of CargoTeck, the modular homes have been fitted with all the essentials and have been compared to chalets and bed and breakfasts. With interior design and household utilities, the homeless are getting the resources they need to live and survive. The containers look similar to the portacabins used by schools and builders as make-shift offices or classrooms.
The Neighbours Have Complained
Several local residents of the W3 postcode have complained about the recent constructions, specifically what an eyesore they are and how close they are to other residents of Ealing. One resident said that they were promised a new park, trees and shrubbery to replace the disused garages but there isn't any of that. (Source: The Mirror)
It also raises concerns about unsociable behaviour and in an area where there is already too much of it. But above all, it is the proximity of how close they are to local residents which has attracted criticism and they have argued that it was 'not like the original plans.' Neighbours were even more outraged to find out that the site has planning permission to be around for another 10 years - much to their dismay.
The local council have defended themselves, saying that they are the same specification as the original plans. Mark Wiltshire from The Ealing Council explained:
When we put people in bed and breakfast we don't get the full cost back from the government.
So we are subsidising to the tune of about £7million-a-year. So it's a much, much cheaper way to deal with this problem.
And the actually living arrangements are much better for people than bed and breakfast.
Future Modular Housing Plans in Ealing
The council continued to say that this, in fact, one of three temporary living areas that they are expanding, according to ITV News. The aim is to provide emergency homes to those struggling to find places to live and the vision is to also include playground areas, bike sheds and a community for all.
The Facts and Figures
- Marston Court will provide 34 homes which will be used as temporary accommodation for families facing homelessness while more permanent places can be found for them.
- Modular homes are one of the ways the council are working to "boost the borough’s housing supply and reduce the council’s reliance on bed and breakfast accommodation" which is expensive and not ideal for families.
- The homes have planning permission for 10 years.
- The site also features, landscaping, a playground, a laundry room and cycle parking.
- Previously there were garages on the council-owned site.
For more information, you can listen to a full interview with BBC Radio's Vanessa Feltz speaking to the Ealing Council about the site and situation:
