Banks starting to re-enter bridging market
So far the vast majority of activity is in the commercial finance sector where businesses are looking to expand, improve or acquire new premises; but there has also been activity in the higher-end residential sector concentrated on London.
Bob Sturges, head of communications at Omni Capital, said the stirring in bank activity was to be expected.
Sturges said: “Many of the big lenders are sitting on piles of cash accumulated over the past five years of relative lending inactivity and government subsidy.
“This could not continue and they appear at last to have rediscovered a little of their appetite for risk.
“However it’s still a tenuous venture back to lending, and not one that seriously challenges us as a niche lender.”
“While welcome for the general good of the economic recovery the banks more expansive position is mainly in the commercial sector and focused on relatively low-risk, uncomplicated lending scenarios.
“The type of nuanced bridging in which we specialise is, I suspect, beyond their capacity and competence for now and a good few years to come.”