25 July, 2014
Bridging in the North of England is taking off according to Merseyside-based Bridging Finance Solutions.
The lender has seen the value of enquiries exceed £1m per week, with 70% of its activity being in the North or North West.
BFS has always catered for customers countrywide, yet it reports that Northern applications have increased by 30% in the last year.
Steve Barber, managing director of bridging Finance Solutions, said: “A number of bridging companies have a strong appetite to lend in the South East, where the market has seen some significant recent gains as foreign investors continue to plough money into both the residential and commercial property markets.
“As the South East property market improves, history tells us that the rest of the country will follow in differing degrees, however, return on investments on property in the North can often be far higher than those in the South.”
According to Barber a homes purchased for £70,000 in Northern cities can hold a rental value of £500 per month, offering a yield of 8.5%.
He added: “Returns such as this can rarely be made in the Southern property market as property capital values far outweigh the increase in rental yield.
“We remain a nation all bridging finance company but one that recognises that with an established track record north of Birmingham, perhaps going against the grain and continuing to increase lending in the North will give our clients and brokers the certainty and confidence as business, demand and turnover grows.”