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Everything you need to make the right decisions

Providing the most comprehensive and up-to-date information and analysis of the Bridging Loans market, and the behaviours, preferences and habits of the consumer.

Mintel has the answers you’re looking for

What are the key challenges facing the industry? Who is the consumer and what do they want? Where are the opportunities, where are the risks and what lies ahead?

Segmentation

This report segments the market by the following sectors:

  • Residential
  • Commercial
  • Development
  • 2nd Charge

An alternative segmentation into loan purpose is also provided:

  • Bridging Purpose
  • Auction Purchase
  • Business Purposes
  • Refurbishment
  • Rebridging
  • Mortgage Delays
  • Other

Company Profiles

Mintel's B2B reports provide company profiles and analysis on the major players of the market:

  • Aspen Bridging
  • Oaksix Holding Limited (formerly Fortwell Capital)
  • Octopus Real Estate (formerly known as Octopus Property)
  • Shawbrook Bank
  • Together Commercial Finance Ltd
  • United Trust Bank
  • West One Loans

Expert analysis from a specialist in the field

Written by Lewis Cone, a leading analyst in the B2B sector, his extensive knowledge delivers in-depth commentary and analysis to highlight current trends and add expert context to the numbers.

The market does not experience the same turbulence as mainstream finance providers facing increasing regulations and uncertainty over funding from major institutions. Market development will largely be determined by what happens in the housing market and if there is enough equity in properties to continue to fund redevelopments and business expansions Lewis Cone
Senior B2B Analyst

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What's included

What's included

Table of contents

Table of contents

  1. Overview

    • What you need to know
      • Covered in this Report
      • Executive Summary

          • The market
            • Market expected to rise by 14% in 2019
              • Figure 1: UK bridging loans market value, in aggregated loan balances, 2015-19, (£ billion)
            • Commercial retains its dominant position… just
              • Figure 2: UK bridging loans market value segmentation, in aggregated loan balances, by sector, 2015-19, (£ billion)
            • Investment purposes represent most common use of loans
              • Figure 3: UK bridging loans market value segmentation, by loan purpose and in aggregated loan balances, 2018 and 2019, (% of bridging loans)
            • Aggregated loan balances forecast to rise by 44% to 2024
              • Figure 4: Forecast UK bridging loans market value, in aggregated loan balances, 2020-24, (£ billion)
            • The consumer
              • Grants most commonly used whilst over a quarter would consider bridging
                • Lower arrangement fees most attractive to business owners
                  • Improving cash flow and equipment purchase represent most common uses of loan
                    • What we think
                    • Issues and Insights

                      • Industry under the spotlight regarding default rates
                        • The facts
                          • The implications
                            • The number of SMEs seeking external finance has fallen with bridgers needing to be proactive
                              • The facts
                                • The implications
                                • The Market – What You Need to Know

                                  • Bridging continues to grow but is starting to feel the bite of uncertainty
                                    • Commercial retains its dominant position… just
                                      • Aggregated loan balances forecast to rise by 44% to 2024
                                      • Market Size

                                        • Bridging continues to grow but is starting to feel the bite of uncertainty
                                            • Figure 5: UK bridging loans market value, in aggregated loan balances, 2015-19, (£ billion)
                                          • Most recent data for 2019 suggests industry is still growing
                                          • Market Segmentation

                                            • Commercial retains its dominant position… just
                                                • Figure 6: UK bridging loans market value segmentation, in aggregated loan balances, by sector, 2015-19, (£ billion)
                                              • Loan purpose
                                                • Figure 7: UK bridging loans market value segmentation, by loan purpose and in aggregated loan balances, 2018 and 2019, (% of bridging loans)
                                            • Market Forecast

                                              • Aggregated loan balances forecast to rise by 44% to 2024
                                                • Figure 8: Forecast UK bridging loans market value, in aggregated loan balances, 2020-24, (£ billion)
                                              • Key indicators of growth begin to drag but industry remains optimistic
                                                  • Figure 9: Forecast UK bridging loans market value segmentation, in aggregated loan balances, by sector, 2020-24, (£ billion)
                                              • The Impact of the Economy

                                                • Annual GDP growth falls to six-year low in 2018
                                                  • Figure 10: Annual GDP growth rate, 2014-18, (%)
                                                • Bank rate remains at 0.75%
                                                  • Figure 11: Bank rate, 2008-18, by date of adjustment, (%)
                                              • Market Trends

                                                • Commercial property starts to slow but continues to offer better returns than residential sector
                                                    • Figure 12: Halifax and nationwide House Price Index, by annual change per quarter, Q1 2011-Q2 2019, (%)
                                                  • Vast expansion in bridging has only led to small share of total mortgage lending
                                                    • Figure 13: ASTL gross mortgage lending estimates, 2015-19, (£ million and %)
                                                  • Other trends
                                                    • Regulated and unregulated loans
                                                      • Average LTVs and split between 1st and 2nd charge loans
                                                        • Average interest rate
                                                          • Average loan term
                                                          • Market Drivers

                                                            • Brexit impasse and the increasing likelihood of a no-deal exit continues to affect lending plans
                                                              • New HMO rules provide opportunity for bridgers
                                                                • Lengthening time to complete property transactions and stagnating house prices test lenders
                                                                    • Figure 14: Number of residential property transactions, 2014-15 to 2018-19, (seasonally adjusted)
                                                                    • Figure 15: Number of non-residential property transactions, 2014-15 to 2018-19, (seasonally adjusted)
                                                                  • A rise in insolvencies presents challenges and reduces business from those with less access to finance
                                                                      • Figure 16: Company insolvencies in England and Wales, 2014-18, (number)
                                                                  • Companies and Brands – What You Need to Know

                                                                    • Hope Capital extends range to include borrowers with adverse credit
                                                                      • Aspen Bridging launches ‘finish and exit’ product and flexible loan extensions
                                                                      • Industry Structure

                                                                        • Industry development
                                                                          • Major industry movements
                                                                            • Lender overview
                                                                              • Figure 17: Bridging lenders’ activity and product detail, by lender, 2019
                                                                          • Competitive Strategies

                                                                            • Hope Capital extends range to include borrowers with adverse credit
                                                                              • Aspen Bridging launches ‘finish and exit’ product and flexible loan extensions
                                                                                • UTB launches dual legal representation to simplify the legal process for loans
                                                                                • Company Profiles

                                                                                  • Aspen Bridging
                                                                                    • Recent company activity
                                                                                      • Financial information
                                                                                        • Figure 18: Financial analysis of Aspen Bridging Limited, 2018-19, (£ 000)
                                                                                      • Oaksix Holdings Limited (formerly Fortwell Capital)
                                                                                        • Recent company activity
                                                                                          • Financial information
                                                                                            • Figure 19: Financial analysis of Oaksix Holdings Limited (formerly Fortwell Capital), 2014-18, (£ 000)
                                                                                          • Octopus Real Estate (formerly Octopus Property)
                                                                                            • Recent company activity
                                                                                              • Financial information
                                                                                                  • Figure 20: Financial analysis of Bridgeco Ltd, 2013-17, (£ 000)
                                                                                                  • Figure 21: Financial analysis of Fern Trading Ltd, 2014-18, (£ million)
                                                                                                  • Figure 22: Financial analysis of Nino Limited, 2015-19, (£ 000)
                                                                                                  • Figure 23: Financial analysis of Octopus Property Limited, 2015-19, (£ 000)
                                                                                                  • Figure 24: Financial analysis of Terido LLP, 2014-18, (£ 000)
                                                                                                • Shawbrook Bank
                                                                                                  • Recent company activity
                                                                                                    • Financial information
                                                                                                      • Figure 25: Financial analysis of Shawbrook, 2014-18, (£ million)
                                                                                                    • Together Commercial Finance
                                                                                                      • Recent company activity
                                                                                                        • Financial information
                                                                                                          • Figure 26: Financial analysis of Together Commercial Lending, 2014-18, (£ 000)
                                                                                                        • United Trust Bank
                                                                                                          • Recent company activity
                                                                                                            • Financial information
                                                                                                              • Figure 27: Financial analysis of United Trust Bank, 2014-18, (£ 000)
                                                                                                            • West One Loans
                                                                                                              • Recent company activity
                                                                                                                • Financial information
                                                                                                                  • Figure 28: Financial analysis of West One Loan, 2014-18, (£ 000)
                                                                                                              • The Consumer – What You Need To Know

                                                                                                                • Grants most commonly used whilst over a quarter would consider bridging
                                                                                                                  • Lower arrangement fees most attractive to business owners
                                                                                                                    • Improving cash flow and equipment purchase represent most common uses of loan
                                                                                                                    • Non-bank Lending Use

                                                                                                                      • Grants most commonly used whilst over a quarter would consider bridging
                                                                                                                        • Figure 29: Non-bank lending use, June 2019, (% of respondents)
                                                                                                                    • Attractive Lending Factors

                                                                                                                      • Lower arrangement fees most attractive to business owners
                                                                                                                        • Figure 30: Attractive lending factors, June 2019, (% of respondents)
                                                                                                                    • Loan Purpose

                                                                                                                      • Improving cash flow and equipment purchase represent most common uses of loan
                                                                                                                        • Figure 31: Purpose of loan, June 2019, (% of respondents)
                                                                                                                    • Appendix – Data Sources, Abbreviations and Supporting Information

                                                                                                                        • Abbreviations
                                                                                                                          • Methodology
                                                                                                                          • Further Sources and Contacts

                                                                                                                            • Trade associations
                                                                                                                              • Trade magazines
                                                                                                                                • Trade events

                                                                                                                                About the report

                                                                                                                                This report will give you a complete 360-degree view of your market. Not only is it rooted in robust proprietary and high-quality third-party data, but our industry experts put that data into context and you’ll quickly understand:

                                                                                                                                • The Consumer

                                                                                                                                  What They Want. Why They Want It.

                                                                                                                                • The Competitors

                                                                                                                                  Who’s Winning. How To Stay Ahead.

                                                                                                                                • The Market

                                                                                                                                  Size, Segments, Shares And Forecasts: How It All Adds Up.

                                                                                                                                • The Innovations

                                                                                                                                  New Ideas. New Products. New Potential.

                                                                                                                                • The Opportunities

                                                                                                                                  Where The White Space Is. How To Make It Yours.

                                                                                                                                • The Trends

                                                                                                                                  What’s Shaping Demand – Today And Tomorrow.

                                                                                                                                Please Note: This is a sample report. All of the figures, graphs, and tables have been redacted.

                                                                                                                                Description