Ortus reports surge in demand for residential bridging loans
By Laura Miller -
Nationwide bridging lender Ortus Secured Finance has reported a surge in residential bridging loan enquiries, as borrowers seek out cut-price deals before the end of the stamp duty holiday next March.
The lender, which has offices in London, Manchester, Belfast and Glasgow, recorded non-commercial customer applications up 25pc in August compared to July, and 300pc higher versus the same time last year.
August will be a record month for completions, according to the lender. Based on current projections Ortus is expecting a similar surge in September, with £50m of completions currently pending for next month.
Demand for the residential bridging loans have come from a combination of marketing bridges, acquisition loans and refinances, according to the lender.
In line with the increase in business, Ortus intends to expand with more new hires in the near future, adding to its recent growth into a larger Belfast office.
The lender attributes the increase in demand to a recent reduction in its pricing, and the government’s decision to allow a temporary stamp duty holiday.
At the start of July the chancellor announced buyers will be exempt from paying stamp duty on the first £500,000 of all property sales in England and Northern Ireland until next March, to boost the property market and help buyers struggling because of the coronavirus crisis.
Jon Salisbury, pictured, managing director at Ortus said:
“The residential market seems to be booming right now and this, combined with our reduced pricing, means it’s now a huge part of our book.”
Ortus continued to lend throughout the Covid-19 pandemic, funding both residential and commercial bridging loans for introducers.
The principal specialist lender provides loans from £100,000 to £25m for terms of up to three years.