All indications continue to point to an indefinite period of economic uncertainty. During which, businesses and private borrowers alike may find themselves looking at increasingly restricted product availability from major High Street banks.
This has been one of the most prevalent trends of the past 24 months, fuelling the rapid growth and expansion of the bridging sector. Typically more flexible and accessible than conventional loans or mortgages, bridging finance has become the tool of choice for more Brits than ever before.
What is to come in 2022 is still anybody’s guess; things could look much different than they do right now in just a few weeks’ time. But what can be said for sure is how some of the biggest bridging trends of 2021 are set to continue gaining traction over the course of the coming year.
Perhaps the three most prevalent examples of which are as follows:
Growing Demand for Property Refurbishment Loans
Sourcing affordable funding for property improvements and refurbishments will continue to prove popular among investors and homeowners alike. With working from home set to continue as the norm for some time, people are rethinking their priorities and long-term plans.
Many who may have been considering relocation are now focusing their efforts and budgets on home improvements. All in the name of making the best of the space and assets they already have available.
In addition, property flipping opportunities for investors are no longer confined to the UK’s usual property hotspots. As movers and buyers continue to set their sights on more spacious homes away from busy urban centres, potentially profitable refurbishment and resale projects are becoming more commonplace.
Flexibility Will Continue to Be a Priority
The aftereffects of the pandemic are likely to linger for some time, resulting in severe supply chain issues and general disruptions for investors and property developers alike.
Consequently, preference will continue to be shown to flexible financial products and service providers, able to meet the needs of their customers when things happen at short notice.
Developers and investors who struggled during the pandemic may find it difficult to obtain the financial support they need on the High Street. The more accommodating approach adopted by bridging loan lenders could prove invaluable for those who do not meet major banks’ highly selective lending criteria.
Cash flow Issues for Businesses
Cash flow issues for small and large businesses alike are likely to remain an issue over the coming year.
The goal is to reduce outgoings by consolidating debts stacked up during the height of the pandemic. For others, it is more about obtaining the capital injection needed to drive growth after almost two years of stagnation. In both instances, businesses will be looking to secure the kind of flexible and affordable bridging loans as funding that can be used for a wide variety of purposes. More importantly, loans issued not on the basis of recent performance, but on the applicant’s more general financial position and future outlook.