Product Type: Market Research Report
Published by: Datamonitor
Published: November 2006
Product Code: R313-18065Description Introduction
Bridging loans are short-term secured loans, which are used under specific circumstances. Despite being part of the UK mortgage market, bridging finance is the ?unknown relative? of the sector. This report provides an overview of the bridging loan sector in the UK, covering market sizing, issues, competitive trends and includes a 5-year forecast in terms of gross advances.
Scope- Short overview of the bridging Loans sector in the UK focusing on the residential market
- Market sizing data relates to bridging finance for both residential and commercial properties
- Provides a 5-year forecasts in terms of gross advances
Highlights
Information about the size of the bridging loan sector is limited but one thing that is clear is that the sector is small. Estimates from the consultancy CIL put the size of the bridging loan market at o1.2 billion in terms of balances.
The bridging loan industry has often been associated with a poor image. Indeed, the sector has received numerous criticisms in the past with regards to the prevailing high interest rates and the way some lenders operate.
Undoubtedly, prices play an important role in the bridging loan market for differentiating one?s products. However, how fast the bridging loan can be disbursed to the borrower is of utmost importance, given the circumstances under which a bridging loan is the suitable method of funding.
Reasons to Purchase- Gain insight into the bridging finance sector in the UK
- Draw on Datamonitor's five-year scenario-based forecast to plan your future strategy with confidence
Table of Contents - CHAPTER 1 INTRODUCTION
- Scope of the report
- Who is the target reader?
- How to use this report
- CHAPTER 2 THE BRIDGING LOAN MARKET IN CONTEXT
- Introduction
- A bridging loan is a type of mortgage
- Bridging finance is a short-term funding method
- A bridging loan carries a number of characteristics
- Bridging finance can be used in a number of situations
- The bridging loan market is small
- Bridging finance is estimated to account for £1.2 billion in balances outstanding and £2.5 billion in gross advances
- New lending was £2.5 billion in 2005
- Despite reportedly seeing significant growth, the market remains constrained by a number of factors
- The bridging finance industry has often been associated with a bad reputation
- Interest rates are high
- A lack of awareness from brokers is restraining distribution
- Gross advances in the bridging loan sector will reach £5.6 billion in 2010
- The bridging loan sector will account for 1.7 per cent of total residential mortgage gross advances in 2010
- CHAPTER 3 COMPETITIVE DYNAMICS
- Introduction
- Specialist lenders are the dominant players in bridging finance
- Specialist lenders account for 65 per cent of new business
- Few major high street lenders operate in the bridging loan industry
- Furthermore, it is unlikely that more mainstream lenders will enter the sector
- Lenders differentiate their products based on rapidity
- Many specialist lenders provide case studies to illustrate their rapid service
- Providing a fast service to intermediaries also plays an important part in lenders' strategies
- CHAPTER 4 APPENDIX
- Definitions
- Balances outstanding
- CAGR
- Loan-to-value (LTV)
- Research methodology
- Relevant readings
- UK Mortgage Market Map 2006
- Key Features
- For futher information
- Reports
- European mortgage reports
- UK mortgage reports
- UK mortgage briefings
- Future readings
- Datamonitor's custom research capabilities
- Retail Banking Team contact details
- List of Tables
- Table 1: Examples of interest rates offered by a sample of specialist bridging loan lenders, July 2006
- Table 2: Forecast gross advances for bridging loans, 2005, 2006f-2010f
- Table 3: Only a handful of major mainstream lenders offer bridging loans, July 2006
- List of Figures
- Figure 1: Examples of transactions where bridging loans have been involved, July 2006
- Figure 2: Cheval Property Finance's own code of conduct, July 2006
- Figure 3: The bridging loan sector will double its market share of residential mortgage gross advances by 2010, 2006-2010f
- Figure 4: Specialist lenders control 65 per cent of the bridging finance sector
- Figure 5: Lenders' case studies focuses on how fast they can complete the bridging loan transaction, July 2006
- Figure 6: The UK Mortgage Market Map 2006 covers a wide range of mortgage sectors
- Figure 7: Taxonomy of UK Mortgage Market Map 2006
- Figure 8: Datamonitor's core consulting capabilities
|
|
