blog mortgage118

Tag: Property Investment

  • RAW Capital Partners Launches New Bridging Finance Options

    RAW Capital Partners Launches New Bridging Finance Options

    RAW Capital Partners has unveiled a new range of bridging finance products, expanding its offerings to UK residents. This move is significant as it enhances the options available for landlords and investors seeking quick financing solutions in the UK property market.

    TL;DR: RAW Capital Partners introduces bridging finance loans from £100,000 to £4m, targeting landlords and investors needing fast access to funds; terms range from three to 18 months with a maximum LTV of 60%.

    What is Bridging Finance?

    Bridging finance is a short-term loan designed to ‘bridge’ the gap until permanent financing is secured or the property is sold. It’s often used in property transactions where speed is essential, such as auctions or urgent renovations. This new offering from RAW Capital Partners provides a viable option for those looking to act quickly in the competitive UK property market.

    Who Can Benefit from RAW Capital’s New Products?

    The new bridging finance range is particularly beneficial for landlords, property investors, and brokers. With loan amounts ranging from £100,000 to £4 million and flexible terms between three to 18 months, these products cater to various financing needs. The maximum loan-to-value ratio of 60% allows borrowers to use their investments effectively while maintaining manageable risk levels.

    What This Means for Landlords and Investors

    For landlords and investors, the introduction of these bridging loans offers a pathway to secure funding quickly, which is important in a fast-paced property environment. The focus on speed and certainty of execution means that borrowers can expect a more streamlined process, allowing them to seize opportunities as they arise. This is particularly important for those looking to invest in buy-to-let properties or undertake renovation projects.

    Frequently Asked Questions

    What are the typical uses for bridging finance?

    Bridging finance is typically used for property purchases at auction, renovations, or to secure quick funding while waiting for long-term financing.

    How does the loan-to-value ratio affect my borrowing?

    The loan-to-value ratio determines how much you can borrow against the value of the property. A maximum LTV of 60% means you can borrow up to 60% of the property’s value, impacting your equity and potential investment returns.

  • RAW Capital Partners Launches New Bridging Loans

    RAW Capital Partners Launches New Bridging Loans

    RAW Capital Partners, a specialist lender based in Guernsey, has expanded its offerings by introducing bridging loans secured against UK residential property. This move is significant for landlords and investors seeking flexible financing options, especially given the current property market dynamics.

    TL;DR: RAW Capital Partners now offers bridging loans from £100,000 to £4 million for terms of three to 18 months; this expansion allows UK residents greater access to fast, unregulated financing options.

    What are the key features of these bridging loans?

    The newly launched bridging loans from RAW Capital Partners are available in amounts ranging from £100,000 to £4 million. The loans are unregulated and are secured against residential properties in the UK. Borrowers can choose terms between three to 18 months, with a maximum loan-to-value (LTV) ratio of 60%. Interest rates are tiered based on the LTV, providing a structured approach to financing.

    Who can benefit from these bridging loans?

    These loans are particularly beneficial for foreign nationals, UK expatriates, Channel Islanders, and now UK residents, as RAW Capital Partners has broadened its lending criteria since December 2025. This expansion allows a wider audience to access quick funding solutions, which is essential for property investors looking to seize opportunities in the fast-paced market.

    What this means for property investors and brokers

    The introduction of bridging loans by RAW Capital Partners is a timely addition to the market. With over £220 million in assets under management in the RAW Mortgage Fund, the lender is well-positioned to provide swift and reliable financing. This is important for brokers and investors who require certainty and speed in their transactions, particularly in competitive bidding situations.

    Frequently asked questions

    What is a bridging loan?

    A bridging loan is a short-term financing option used to bridge the gap between the purchase of a new property and the sale of an existing one, often used by investors for quick funding.

    How does the tiered interest rate work?

    The tiered interest rate for bridging loans varies based on the loan-to-value ratio, meaning the higher the LTV, the different the rate applied, allowing for tailored financing solutions.

  • London House Prices Decline Amid Nationwide Stagnation

    London House Prices Decline Amid Nationwide Stagnation

    Recent analysis reveals that London is the only UK region experiencing a decline in house prices, with forecasts indicating an additional drop of nearly £5,000 by the end of the year. This trend contrasts sharply with other regions, where house prices have either remained stable or increased slightly.

    TL;DR: London house prices are projected to fall by almost £5,000 by December 2026, while other regions see modest growth; this impacts buyers and investors in the capital.

    Why Are London House Prices Falling?

    According to the latest data, the average house price in London has decreased by 0.2% per month over the past year. This trend is expected to continue, with forecasts suggesting a drop from £552,655 to £547,889 by December 2026. This decline represents a total loss of nearly £21,000 since the market peak in July 2025, when average prices reached £568,801. In contrast, regions like the North East and Yorkshire have seen positive growth, with average increases of 0.8% and 0.6%, respectively.

    What Does This Mean for Buyers and Investors?

    For potential buyers and investors in London, this decline could present opportunities, particularly for those seeking to negotiate better purchase prices. However, it also signals a challenging environment for current homeowners looking to sell, as they may need to adjust their expectations regarding property values. The stagnation in the broader UK market, with an average growth of just 0.3% across England, means that buyers outside London may also face a more competitive market.

    How Are Other Regions Performing?

    While London struggles, other regions are experiencing varying degrees of growth. The North East has emerged as a leader in house price growth, with an average increase of 0.8% per month. The North West and Yorkshire and the Humber follow closely behind, both showing 0.6% growth. The West Midlands and East Midlands are also performing well, each recording a 0.5% increase. This regional disparity highlights the importance of location in the current property market.

    Frequently Asked Questions

    What factors are contributing to the decline in London house prices?

    The decline in London house prices can be attributed to a combination of stagnation in the overall market, economic uncertainties, and changes in buyer demand.

    How can current homeowners in London adapt to falling prices?

    Homeowners may need to adjust their selling strategies, potentially lowering their asking prices or improving property appeal to attract buyers in a declining market.

  • RAW Capital Partners Launches New Bridging Loan Options

    RAW Capital Partners Launches New Bridging Loan Options

    RAW Capital Partners, a specialist lender based in Guernsey, has expanded its offerings by introducing bridging loans. This move is significant for landlords and property investors as it provides additional financing options secured against UK residential properties.

    TL;DR: RAW Capital Partners now offers unregulated bridging loans ranging from £100,000 to £4 million for terms of three to 18 months; this expansion means more opportunities for UK property investors, including foreign nationals and expatriates.

    What are the Key Features of the New Bridging Loans?

    The newly launched bridging loans are first-charge loans available for amounts between £100,000 and £4 million. Borrowers can select terms ranging from three to 18 months, with a maximum loan-to-value (LTV) ratio set at 60%. The interest rates for these loans are tiered based on the LTV, offering flexibility for various borrowing needs.

    Who Can Benefit from These Bridging Loans?

    These loans are particularly beneficial for foreign nationals, UK expatriates, and Channel Islanders who have been investing in UK buy-to-let properties. Following an expansion of its lending criteria in December 2025, UK residents are also now eligible to apply. This broadens access to quick financing solutions for those looking to seize property investment opportunities.

    What This Means for Property Investors and Brokers

    The introduction of bridging loans by RAW Capital Partners enhances the financing market for property investors. With a robust RAW Mortgage Fund boasting over £220 million in assets, the lender is positioned to provide swift and reliable funding. Brokers can expect increased options for their clients, particularly those needing fast capital to secure properties.

    Frequently Asked Questions

    What is a bridging loan?

    A bridging loan is a short-term financing option used to bridge the gap between the purchase of a new property and the sale of an existing one, often used in property transactions.

    How can I apply for a bridging loan from RAW Capital Partners?

    Interested borrowers can apply through brokers who work with RAW Capital Partners, ensuring they meet the lending criteria and can provide the necessary documentation.

  • Recognise Reports 51% Lending Surge in Mortgage Market

    Recognise Reports 51% Lending Surge in Mortgage Market

    Recognise has announced a significant 51% rise in gross lending, with its bridging loan balances more than doubling, marking a pivotal moment in the UK mortgage market. This growth reflects a strategic shift within the lender, aimed at enhancing its offerings and profitability in a competitive market.

    TL;DR: Recognise’s gross lending surged 51%, with bridging loan balances rising from £124m to £303.8m; this growth is important for landlords and investors looking for robust financing options.

    What are the Key Financial Highlights?

    Recognise’s loan book has now surpassed £500 million, with bridging loans comprising two-thirds of this total. The bank’s professional buy-to-let (BTL) lending remained relatively stable, increasing slightly from £88 million to £88.4 million. However, commercial lending saw a decline, dropping from £58.8 million to £49.5 million. Geographically, London continues to dominate, with lending rising from £88.3 million to £153.2 million, while the South East and North West also saw increases in their respective lending figures.

    How Did Recognise Improve Its Profitability?

    Recognise recorded an £8.9 million profit after tax for the year, a significant turnaround from a £5.3 million loss in 2025. This improvement includes £0.9 million in restructuring costs and a £7.1 million deferred tax asset. The bank’s net interest income rose by 31.7% to £20.4 million, with the net interest margin improving from 5% to 5.3%. This growth is attributed to disciplined pricing strategies and ongoing balance sheet optimisation.

    What This Means for the Mortgage Market

    The doubling of bridging loan balances indicates a growing appetite for short-term financing solutions among landlords and property investors. With Recognise planning to introduce regulated bridging loans in FY27, borrowers may soon have access to more flexible financing options. This is particularly relevant for those looking to capitalise on property opportunities quickly. Investors should monitor Recognise’s forthcoming product offerings and the overall trend in bridging finance as they could influence market dynamics.

    Frequently Asked Questions

    What is bridging finance and how does it work?

    Bridging finance is a short-term loan used to ‘bridge’ the gap between the purchase of a new property and the sale of an existing one. It is typically used for quick funding needs.

    How does the increase in lending affect the mortgage market?

    The increase in lending, particularly in bridging finance, suggests a robust demand for property investment, which may lead to more competitive mortgage rates and options for borrowers.

  • Recognise’s Gross Lending Rises 51% in Mortgage Market

    Recognise’s Gross Lending Rises 51% in Mortgage Market

    Recognise has reported a significant 51% increase in gross lending, with its bridging loan balances more than doubling. This surge highlights a growing trend in the mortgage market, particularly for bridging finance, which is becoming increasingly popular among borrowers.

    TL;DR: Recognise’s gross lending rose 51%, with bridging balances soaring from £124m to £303.8m; this growth signals a robust demand for short-term financing solutions in the mortgage market.

    What Led to Recognise’s Growth?

    Recognise’s loan book has surpassed £500 million, with bridging loans now constituting two-thirds of its total lending portfolio. The bank reported that professional buy-to-let (BTL) lending remained stable at £88.4 million, showing only a slight increase from the previous year. In contrast, commercial lending saw a decline from £58.8 million to £49.5 million, indicating a shift in borrower preferences towards more flexible financing options.

    How Are Regional Markets Performing in the Mortgage Market?

    Regionally, London continues to dominate, with lending rising from £88.3 million to £153.2 million. The South East also experienced growth, increasing from £54.9 million to £95 million, while the North West saw a rise from £66.2 million to £77.5 million. This regional performance suggests that demand for mortgage products is robust across key UK areas, particularly in urban centres.

    What This Means for Borrowers and Investors in the Mortgage Market

    For landlords and investors, the doubling of bridging loan balances indicates a thriving market for quick financing solutions, which can be advantageous for those looking to seize investment opportunities or manage cash flow. The growth in Recognise’s lending portfolio, alongside a net profit of £8.9 million after tax, suggests a healthy financial outlook for the lender, which may translate into more competitive offerings for borrowers in the mortgage market.

    What Should Brokers Watch Next?

    Brokers should keep an eye on Recognise’s plans to launch regulated bridging products in FY27, pending approval from the Prudential Regulation Authority (PRA). This move could diversify the options available to clients and enhance competition in the bridging sector. Additionally, Recognise’s focus on expanding its commercial mortgage and long-term property lending could present new opportunities for brokers to assist clients in navigating the evolving mortgage market.

    Frequently asked questions

    What impact does Recognise’s growth have on the mortgage market?

    Recognise’s growth reflects a strong demand for bridging loans, indicating a shift in borrower preferences towards flexible financing options, which may influence other lenders to adapt their offerings.

    How can borrowers benefit from Recognise’s new strategies?

    Borrowers may benefit from increased competition and potentially better rates and terms as Recognise expands its product offerings, particularly in the bridging and commercial mortgage sectors.

  • Recognise’s Gross Lending Surges 51% in Mortgage Market

    Recognise’s Gross Lending Surges 51% in Mortgage Market

    Recognise has reported a significant 51% increase in gross lending, highlighting a robust performance in the bridging finance sector, where balances more than doubled. This growth is particularly relevant for landlords and investors looking for opportunities in a dynamic mortgage market.

    TL;DR: Recognise’s gross lending soared 51%, with bridging balances rising from £124m to £303.8m; this growth signals expanding opportunities for landlords and investors in the mortgage market.

    What are the Key Financial Highlights?

    Recognise’s loan book has now surpassed £500 million, with bridging finance comprising two-thirds of this total. The figures show a remarkable increase in bridging balances, which rose from £124 million to £303.8 million. In contrast, professional buy-to-let (BTL) lending remained relatively stable, increasing slightly from £88 million to £88.4 million. Meanwhile, commercial lending experienced a decline, dropping from £58.8 million to £49.5 million.

    How Did Regional Lending Perform in the Mortgage Market?

    Regionally, London continues to dominate, with lending rising from £88.3 million to £153.2 million. The South East also saw a notable increase, climbing from £54.9 million to £95 million, while the North West experienced growth from £66.2 million to £77.5 million. These trends indicate a strong demand for mortgage products in these areas, which may interest brokers and investors.

    What This Means for Landlords and Investors

    The substantial growth in bridging finance suggests that landlords and property investors may find increased opportunities for short-term financing solutions. Recognise’s strategic shift, which includes moving its head office and streamlining operations, aims to enhance service delivery and efficiency in the mortgage market. The bank’s plans to launch regulated bridging in FY27, pending regulatory approval, could further diversify options for borrowers.

    What Should Borrowers Watch Next in the Mortgage Market?

    Borrowers should keep an eye on Recognise’s upcoming offerings, particularly the anticipated regulated bridging products. Additionally, the bank’s improved net interest income, which rose by 31.7% to £20.4 million, may lead to more competitive rates in the mortgage market. With net interest margins increasing from 5% to 5.3%, borrowers could benefit from more favourable lending conditions in the near future.

    Frequently asked questions

    What is bridging finance?

    Bridging finance is a short-term loan used to bridge the gap between the purchase of a new property and the sale of an existing one. It is often used in property transactions to secure quick funding.

    How does the increase in gross lending affect the mortgage market?

    The increase in gross lending indicates a healthy demand for mortgage products, which can lead to more competitive rates and options for borrowers, particularly in the bridging finance sector.

  • Recognise’s Gross Lending Surge: Impact on the Mortgage Market

    Recognise’s Gross Lending Surge: Impact on the Mortgage Market

    Recognise has reported a remarkable increase in gross lending, with its bridging loan balances more than doubling. This significant growth highlights a shift in the mortgage market, particularly benefiting landlords and property investors looking for flexible financing options.

    TL;DR: Recognise’s gross lending has surged, with bridging balances exceeding previous levels; this trend is important for landlords and property investors seeking adaptable financing solutions.

    How Has Recognise’s Loan Book Grown?

    Recognise’s loan book has surpassed a significant milestone, with bridging loans now constituting a substantial portion of the total. The increase in bridging finance indicates a rising demand for short-term lending solutions. In contrast, professional buy-to-let (BTL) lending remained relatively stable, while commercial lending has seen a decline.

    What Regions Are Seeing the Most Growth in the Mortgage Market?

    Regionally, London continues to dominate, with lending rising significantly. The South East has also experienced notable growth, while the North West saw an uptick. These figures suggest a concentrated interest in property investment in these areas, making them attractive for landlords and investors.

    What This Means for Landlords and Investors in the Mortgage Market

    The doubling of bridging loan balances signals a shift towards more flexible financing options, which can be particularly advantageous for landlords and property investors. As Recognise prepares to launch regulated bridging in the near future, there will be more opportunities for borrowers seeking short-term solutions. This could lead to increased competition in the mortgage market, potentially benefiting borrowers through better rates and terms. For those interested, exploring current mortgage rates may provide additional insights.

    What Are Recognise’s Financial Highlights?

    Recognise reported a profit after tax for the year, a significant turnaround from a previous loss. This includes restructuring costs and a deferred tax asset. The bank’s net interest income rose significantly, with net interest margin improving. These positive financial indicators reflect the lender’s effective strategy and operational changes, which may influence future lending practices.

    Frequently asked questions

    How does the increase in bridging loans affect the mortgage market?

    The increase in bridging loans indicates a growing demand for flexible financing options, which may lead to more competitive rates and terms for borrowers in the mortgage market.

    What should landlords consider with these changes?

    Landlords should consider the growing availability of bridging finance as a strategic tool for property investment, especially in high-demand regions like London and the South East.

  • Recognise Reports 51% Lending Increase in Mortgage Market

    Recognise Reports 51% Lending Increase in Mortgage Market

    Recognise has announced a significant 51% rise in gross lending, with its bridging loan balances more than doubling, reflecting a robust growth strategy in the mortgage market. This surge is particularly relevant for landlords and investors seeking opportunities in a competitive lending environment.

    TL;DR: Recognise’s gross lending has surged 51%, with bridging loan balances increasing from £124m to £303.8m; this growth may benefit landlords and property investors looking for financing options.

    What are the key financial figures?

    Recognise’s loan book has surpassed £500 million, with bridging loans now constituting two-thirds of the total book. The bridging loan balances rose dramatically to £303.8 million, while professional buy-to-let lending remained stable at £88.4 million, showing only a slight increase from the previous year. Commercial lending, however, declined from £58.8 million to £49.5 million in 2026.

    How does this impact the mortgage market?

    The substantial increase in bridging loans indicates a growing demand for short-term financing solutions among property investors. With London remaining the largest market for Recognise, rising from £88.3 million to £153.2 million, the South East and North West also saw notable increases. This trend suggests that investors may find more accessible funding options in these regions, which could stimulate further property transactions.

    What does this mean for landlords and property investors?

    For landlords and property investors, Recognise’s growth in bridging finance is a positive sign. The lender’s plans to introduce regulated bridging in FY27 could provide even more opportunities for those seeking flexible financing options. Furthermore, with a reported profit after tax of £8.9 million, compared to a loss of £5.3 million the previous year, Recognise appears to be stabilizing and expanding its offerings, which may lead to more competitive rates and terms in the mortgage market.

    Frequently asked questions

    What are bridging loans and how do they work?

    Bridging loans are short-term loans used to bridge the gap between the purchase of a new property and the sale of an existing one. They are typically used by property investors to secure financing quickly.

    How can I benefit from Recognise’s lending growth?

    If you are a landlord or investor, Recognise’s increased lending capacity may provide you with more options for financing your property purchases or renovations, especially in high-demand areas.

  • Private Rent Growth Stalls: Impact on the Mortgage Market

    Private Rent Growth Stalls: Impact on the Mortgage Market

    The latest figures from the Office for National Statistics (ONS) indicate a slowdown in private rental growth across the UK, which could have significant implications for the mortgage market. While average asking rents remain at historically high levels, the deceleration in growth rates suggests changing dynamics that landlords, borrowers, and investors should closely monitor.

    TL;DR: Private rental growth has slowed significantly, with average rents in Wales rising 4.9% to £843; this shift may affect landlords and potential buyers in their financial planning.

    What are the latest rental growth figures?

    According to the ONS, average rents in Wales have seen the most substantial increase, rising by 4.9% to £843. In England, rents increased by 3.4%, reaching an average of £1,446, while Scotland recorded a more modest growth of 1.3%, bringing the average to £1,012. Northern Ireland’s data, which is available only up to April, showed a 2.9% rise in rents to £877.

    Why is rental growth slowing?

    Experts, including Alex Upton from Hampshire Trust Bank, have noted that while average rents are still at record highs, the pace of growth has changed dramatically compared to the previous couple of years. This slowdown could be attributed to various factors, including economic conditions, changes in demand, and shifts in tenant preferences. The North East has experienced the highest annual rent inflation in England at 6.3%, but it still has the lowest average rent at £781. Conversely, London, which has the highest average rent at £2,302, recorded the lowest growth rate at 2.2%.

    What does this mean for the mortgage market?

    The deceleration in rental growth presents both challenges and opportunities for the mortgage market. While landlords may still benefit from high average rents, the slower growth could impact their rental income projections and overall investment strategies. Landlords should consider the changing market dynamics when setting rental prices and may need to adapt to a more competitive market as tenants become more discerning.

    How might this affect potential buyers and investors?

    For potential homebuyers and investors, the slowing rental growth could signal a shift in the mortgage market. With average rents stabilising, buyers may find it easier to enter the market, as the pressure to pay escalating rents diminishes. Furthermore, investors should reassess their portfolios and consider the implications of slower rental growth on their return on investment. Keeping an eye on current mortgage rates and market trends will be essential for making informed decisions.

    Frequently asked questions

    How can I stay updated on mortgage rates?

    To stay informed about the latest mortgage rates, consider checking resources that provide regular updates on mortgage rate comparisons to help you make informed decisions.

    What should landlords consider in a slowing rental market?

    Landlords should evaluate their rental pricing strategies, consider tenant demand, and potentially adjust their investment approaches to align with the changing market conditions.