Last year proved just how important the specialist finance market is, arguably better than any year that came before it. Year-on-Year, the amount of loans written rose by 24.8% by the end of 2024, according to the Bridging & Development Lenders Association (BDLA). Applications also jumped (13.8%), as did loan books (35.3%).
On the latter, we at Market Financial Solutions broke records in 2024.
Overall, loan books hit £10.3bn by the end of the year, exceeding the £10bn mark for the first time.
We shouldn’t be too surprised by these results. The specialist market thrives when the wider economic or political picture deteriorates. And, among other things, 2024 brought with it an unprecedented general election, dramatic autumn budget, interest rate uncertainty, and inflationary challenges.
Specifically, though, what drove demand for bespoke finance last year? It seems the BTL corner of the market needed tailored solutions for certain unique circumstances. Following the budget, many brokers reported a rise in bridging loan demand as landlords exited the market, or downsized. At the same time, many landlords turned to bridging providers to purchase new BTL properties, and expand their portfolios.
The omens look positive for 2025 in the specialist market. It appears there will be no shortage of challenges this year, with a spring statement on the way, political turmoil in the US and beyond, and a weary Bank of England.
As property investors navigate these realities, they may require bespoke financial solutions that are tailored to their circumstances. If property investors want to reorganise their portfolios as a result of surprise tax hikes courtesy of the spring statement, tailored refinancing options could help.
Brokers in the UK may be keen to welcome in overseas investors who are looking for stability following Trump’s tariff announcements. Thankfully, foreign national finance is available for overseas property investors, and/or offshore companies.
Also, borrowers do not need to stress alongside the Bank of England. Where property investors want to wait out market uncertainty, and (hopefully) hold out for cut rates, our Bridge Fusion product could offer reprieve. With a term of 24 months, alongside an optional 12-month extension, borrowers can embrace a cautious “wait-and-see” approach to their property investments if they wish.
Evidently, the specialist lending market may be able to present many ways forward over the coming months. At Market Financial Solutions, we expect to be plenty busy in 2025. But with enhanced institutional funding lines behind us, a robust and expanded workforce, and a growing loan book – we’re ready for whatever 2025 has in store for us.