Sorry for interrupting, this website uses cookies to improve your experience. We'll assume you're ok with this, but you can opt-out if you wish. Learn more
Accept & Close

UK Bridging Loans market report

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 and how fast are its rates of growth? Who is the consumer and what do they want? Where are the opportunities, where are the risks and what lies ahead?

Report coverage

This report will explore the following key issues regarding the bridging loans industry in the UK:

  • What are the key determinants driving the bridging loans industry?
  • Was the market affected by the result of the EU referendum? How has it responded?
  • Has regulation restricted industry development?
  • Can the sector withstand competition from other lenders in the years ahead?
  • What does the future hold for bridging finance?

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:

  • Alternative Bridging Corporation
  • Amicus Finance (formerly Capital Bridging Finance)
  • Boost Capital (formerly Business Financial Services (UK)
  • Commercial Acceptances
  • Fortwell Capital (formerly Omni Capital Partners)
  • Goldentree Financial Services
  • Hope Capital
  • MT Finance
  • Oblix Capital
  • Octopus Property (formerly known as Dragonfly Property Finance)
  • Shawbrook Bank
  • Together Commercial Finance Ltd (formerly Lancashire Mortgage Corporation)
  • United Trust Bank
  • West One Loans

Expert analysis from a specialist in the field

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

Despite increased regulation, the industry has had many new entrants over the last two years. However, bridgers must be wary of there being a greater amount of funds available to borrowers than the number who actually need them. Lewis Cone
Financial Services

What you get

What's included

Why buy from us?

Succeed

Our reports will provide you with market data, consumer research and competitive intelligence to succeed in your market.

Instant Access

Buy now and you'll have instant access to the information you need to make the right decisions.

Opportunities

Find out what's next in the markets that matter to you: where opportunities lie and what challenges you will face.

Trusted

A business Superbrand, Mintel is a source you can trust. We have been defining and refining the Market Intelligence mix since 1972.

Table of contents

  1. Overview

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

          • The market
            • Market expected to rise by 20% in 2018
              • Figure 1: UK bridging loans market value, in aggregated loan balances, 2014-18, (£ billion and % annual change)
            • Commercial lending represents largest aspect of the market
              • Figure 2: UK bridging loans market value segmentation, in aggregated loan balances, by sector, 2014-18, (£ billion)
            • Mortgage delays represent most common use of loans
              • Aggregated loan balances forecast to rise by 36% to 2023
                • Figure 3: Forecast UK bridging loans market value, in aggregated loan balances, 2019-23, (£ billion and % annual change)
              • Rapid market expansion has led to negligible rise in share of total mortgage lending
                • Figure 4: ASTL gross mortgage lending estimates, 2014-18, (£ million and %)
              • Companies and brands
                • Low interest rate environment attracts new entrants
                  • What we think
                  • Key Insights

                    • Market oversaturation
                      • The facts
                        • The implications
                          • Changes to HMO licensing could increase demand
                            • The facts
                              • The implications
                              • The Market – What You Need to Know

                                • Bridging returns to stronger growth
                                  • Commercial lending represents largest aspect of the market
                                    • Aggregated loan balances forecast to rise by 36% to 2023
                                    • Market Size

                                      • Bridging returns to stronger growth
                                          • Figure 5: UK bridging loans market value, in aggregated loan balances, 2014-18, (£ billion and % annual change)
                                        • Most recent data for 2018 suggests growth will continue
                                        • Market Segmentation

                                          • Commercial lending represents largest aspect of the market
                                              • Figure 6: UK bridging loans market value segmentation, in aggregated loan balances, by sector, 2014-18, (£ billion)
                                            • Loan purpose
                                              • Figure 7: UK bridging loans market value segmentation, by loan purpose and in aggregated loan balances, 2017 and 2018, (% of bridging loans and value in £ billion)
                                            • Landlords reallocate investment from residential to commercial
                                            • Market Forecast

                                              • Aggregated loan balances forecast to rise by 36% to 2023
                                                • Figure 8: Forecast UK bridging loans market value, in aggregated loan balances, 2019-23, (£ billion and % annual change)
                                              • Housebuilders and development expected to drive growth
                                                  • Figure 9: Forecast UK bridging loans market value segmentation, in aggregated loan balances, by sector, 2019-23, (£ billion)
                                              • The Impact of the Economy

                                                • GDP growth slowed in 2017 with further challenges ahead
                                                  • Figure 10: GDP growth rate, Q1 2014-Q1 2018, (% change on previous quarter)
                                              • Market Trends

                                                • Commercial property remains most likely route to growth whilst residential sector continues to slow
                                                    • Figure 11: Halifax and nationwide house price index, by annual change per quarter, Q1 2010-Q1 2018, (%)
                                                  • Rapid market expansion has only led to negligible rise in share of total mortgage lending
                                                    • Figure 12: ASTL gross mortgage lending estimates, 2014-18, (£ 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 uncertainty still affecting lending environment
                                                              • Demand for property and rising refurbishments drive bridging finance
                                                                  • Figure 13: Number of residential property transactions, 2013-17, (number, seasonally adjusted)
                                                                  • Figure 14: Number of non-residential property transactions, 2013-17, (number, seasonally adjusted)
                                                                • SME funding gap still providing opportunities
                                                                    • Figure 15: Company insolvencies in England and Wales, 2013-17, (number)
                                                                • Regulation

                                                                    • The EU Mortgage Credit Directive
                                                                      • Buy-to-let mortgages
                                                                        • The Small Business, Enterprise and Employment Act
                                                                          • Stamp duty changes
                                                                            • Energy Performance Certificate changes
                                                                            • Companies and Brands – What You Need to Know

                                                                              • Low interest rate environment attracting new entrants
                                                                                • Smaller loans offered to target regions outside of London and the South East
                                                                                • Industry Structure

                                                                                  • Industry development
                                                                                    • Market entrants & exits
                                                                                      • Lender overview
                                                                                        • Figure 16: Bridging lenders’ activity and product detail, by lender, 2018
                                                                                    • Competitive Strategies

                                                                                      • Lenders set to offer higher LTVs to meet broker demand…
                                                                                        • ...as well as lowering interest rates
                                                                                          • Smaller loans offered to target regions outside of London and the South East
                                                                                          • Company Profiles

                                                                                            • Amicus Finance
                                                                                              • Recent company activity
                                                                                                • Financial information
                                                                                                  • Figure 17: Financial analysis of Amicus Finance, 2013-17, (£ 000)
                                                                                                • Oaksix Holdings Limited (formerly Fortwell Capital)
                                                                                                  • Recent company activity
                                                                                                    • Financial information
                                                                                                      • Figure 18: Financial analysis of Oaksix Holdings Limited (formerly known as Fortwell Capital), 2013-17, (£ 000)
                                                                                                    • Octopus Property
                                                                                                      • Recent company activity
                                                                                                        • Financial information
                                                                                                          • Figure 19: Financial analysis of Bridgeco Ltd, 2012-16, (£000)
                                                                                                          • Figure 20: Financial analysis of Fern Trading Ltd, 2013-17, (£000)
                                                                                                          • Figure 21: Financial analysis of Octopus Property Limited (formerly Rednel), 2013-17, (£000)
                                                                                                        • Shawbrook Bank
                                                                                                          • Recent company activity
                                                                                                            • Financial information
                                                                                                              • Figure 22: Financial analysis of Shawbrook Bank, 2013-17, (£000)
                                                                                                            • Together Commercial Finance
                                                                                                              • Recent company activity
                                                                                                                • Financial information
                                                                                                                  • Figure 23: Financial analysis of Together Commercial Lending, 2013-17, (£ 000)
                                                                                                                • United Trust Bank
                                                                                                                  • Recent company activity
                                                                                                                    • Financial information
                                                                                                                      • Figure 24: Financial analysis of United Trust Bank, 2013-17, (£000)
                                                                                                                    • West One Loans
                                                                                                                      • Recent company activity
                                                                                                                        • Financial information
                                                                                                                          • Figure 25: Financial analysis of West One Loan, 2012-16, (£000)
                                                                                                                      • Appendix – Data Sources, Abbreviations and Supporting Information

                                                                                                                          • Abbreviations
                                                                                                                            • Methodology
                                                                                                                            • Further Sources and Contacts

                                                                                                                              • Trade associations
                                                                                                                                • Association of Short Term Lenders
                                                                                                                                  • Financial Intermediary & Broker Association (FIBA)
                                                                                                                                    • National Association of Commercial Finance Brokers
                                                                                                                                      • Trade magazines
                                                                                                                                        • Bridging & Commercial
                                                                                                                                          • Business Matters
                                                                                                                                            • Commercial Reporter
                                                                                                                                              • Loans Insider
                                                                                                                                                • Mortgage Finance Gazette
                                                                                                                                                  • Mortgage Introducer
                                                                                                                                                    • Mortgage Strategy
                                                                                                                                                      • Trade events
                                                                                                                                                        • Financial Services Expo London 2018
                                                                                                                                                          • NACFB Commercial Finance Expo 2019
                                                                                                                                                            • The Finance Professional Show