Is there a case for regional specific bridging finance?
As the property market varies in different UK regions, some financial experts have speculated that there could be a need for regional specific bridging finance products.
There are differences in the property markets across the regions of Britain. South East property prices are higher than the rest of the country. The high-end London property market has attracted many overseas buyers and this has increased prices at a greater rate than most other areas of the country.
Some lenders do not lend in Northern Island and Scotland because they are not expert in the lending laws that apply to these areas.
Most bridging finance lenders work on a case-by-case basis rather than tailor deals to specific regions. If a lender has a specific knowledge about a region, then this can affect their lending criteria and can mean that their lending is subject to regional specific conditions.
Some financial experts have suggested that regional lending products are an interesting idea, but most lenders do not agree that this is the right solution. Lenders need to learn about a region where they are lending and should to be up-to-date on the opportunities and variables associated with that region. Assessing each lending application in a flexible way, it is argued, is more important than tailoring a loan to a region.
When valuing property, local knowledge is needed by the valuer when writing valuation reports for property used as security for bridging loans.