Assetz Capital is predicting spectacular growth in the already buoyant bridging market this year, as Covid restrictions ease and the economy reopens.
The peer-to-peer property lending platform said that the popularity of bridging loans skyrocketed in the countdown to the original stamp duty deadline, as prospective buyers sought cost-effective options to effectively ‘bridge’ the gap between purchasing and selling property.
Assetz Capital said that alternative lenders have been rising in popularity for some time and are best placed to service modern bridging loans, as bridging “has now evolved into an umbrella heading for additional products”.
“There are numerous advantages of looking past traditional funding routes, whether you’re a developer just starting out or you own a string of HMO’s, concrete background stories are not always necessary to cut past the red tape that you may get with a high-street bank,” the firm said.
The platform said that as Covid restrictions are starting to ease and economic confidence is starting to grow, the bridging market right now is rife with opportunities and there are plenty of people wanting to invest their money into property.
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“From a leading alternative funder’s perspective, we know people want their money to work harder for them, with property one of the traditionally safer options for investing,” Assetz Capital said in a blog on its website.
“The UK property market is soaring at the moment, with this momentum expected to continue as we progress through the stages of the government’s roadmap out of national lockdown.
“Post-lockdown and with the country opening up fully, the market is only going to expand further and we look forward to supporting as many opportunities for UK small- and medium- sized enterprises as we can through our bridging offering.”