What will the bridging finance industry look like post Covid-19?

The Covid-19 pandemic and subsequent lockdown measures have certainly had an impact on the global economy, but what does that mean for lenders and their customers in the future? Well, unlike many industries which are struggling to weather the storm, the demand for bridging loans from the property community is currently booming.

So why is this the case? Following Covid-19 restrictions easing mid-2020, many borrowers started to look at new opportunities to restart their investment plans. As a result of the pandemic, one of these growth areas is the increasing demand for country and coastal properties, where there is more convertible space to support remote working arrangements and a healthy lifestyle, compared to city-centre residential and commercial areas. This has created a new level of opportunity for lenders to meet the changing needs of those investors who are looking for tailored and timely solutions to assist them with their revised aspirations and plans, both now and post Covid-19.

The aftermath of Covid-19 will ultimately highlight the lenders which adapted to the changing needs of their customer base and those who did not. As a consequence, the bridging loan landscape has and will continue to change dramatically, however it will be the lenders who learn from this unprecedented time and have the capability to provide bespoke and fast solutions, who will be left standing on the other side of Covid-19.

During the pandemic and to ensure it could react to the unprecedented changes taking place, Hope Capital introduced and completed its first ever loan using the Automated Valuation Model (AVM). This is a mathematical and statistical service which provides quick, real estate property valuations and takes Hope Capital into the future of bridging finance. Now, not only is the traditional method of physical valuations an option for customers, there is also the opportunity for cases where capital is needed instantly, to benefit from this technological advancement.

Through a flexible and fast approach, innovative changes to work functions and a can-do attitude to adapt to new technologies, we at Hope Capital, are evolving to ensure we offer a complete service to meet individual borrowers financing needs, not only now, but to make sure we are here to help and provide a unique service whatever the other side of Covid-19 brings.

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