The Intermediary – May 2025 - Flipbook - Page 52
SPECIALIST FINANCE
Opinion
he first few months
of 2025 have seen
strong levels of activity
across the mortgage
market. However,
affordability pressures,
aitudes to risk, stricter criteria,
and evolving landlord legislation
mean many borrowers are still
finding mainstream lending routes
less accessible.
This climate is keeping demand
high for specialist finance. Whether
it’s short-term solutions like bridging
finance, or medium to longerterm funding options through
second charge loans, development
finance or commercial mortgages,
intermediaries and trusted specialist
packaging partners are playing
a crucial role in helping an array
of clients secure deals that fit
their circumstances.
T
largest actually offered. In total, more
than £436m in bridging loans were
made available on the platform.
Fixed rate availability also
remains high, with 78% of lenders
offering fixed pricing, helping to
support clients seeking certainty in
uncertain times.
DONNA FRANCIS
is managing director at Envelop
space, supporting investor confidence
despite economic pressures.
Development finance DIPs rose
by 28% during the quarter.
Development finance
Bridging finance DIPs rose by
112% in Q1 2025.
Bridging activity
Bridging loan searches rose by 44.2%
in Q1 2025, according to the latest
Brickflow Marketwatch report. The
same report outlined a 112% jump in
decisions in principle (DIPs) submied
during the quarter.
Across the board, funding appetite
remains strong. The largest loan
available via Brickflow stood at
£150m, with over £107m being the
50
The Intermediary | May 2025
In the development finance space,
lending appetite remained robust,
with the number of DIPs rising by 28%
compared to the previous quarter.
However, fixed rate options
remain scarce. Only 26% of lenders
offered fixed pricing in Q1, with
the remaining 74% sticking with
variable terms.
These figures show a healthy level of
demand, though affordability and exit
strategy requirements continue to be
key areas for intermediary support.
Commercial growth
Sticking with the Brickflow data,
commercial mortgage volumes rose
by 23.8% in Q1 2025. DIP activity also
reflected this upward trend, with
a 75.8% increase. Fixed rates were
available from 68% of lenders in the
Commercial finance DIPs saw a
75.8% increase.
However, landlords with
commercial portfolios are not without
their fair share of challenges.
Analysis by Vail Williams of
the Government’s latest Energy
Performance Certificate (EPC) data
shows that 25% of non-domestic
buildings are still rated below Band C.
These landlords have until April
2027 to bring properties up to
