Hinting at a tougher credit market, Albatross reports a 72% spike in enquiries for its 48-hour rescue bridge product in Q1 of 2024 compared with the final quarter of last year and a 52% increase against the same quarter in 2023.
The majority of the enquiring brokers have advised that enquiries are being driven by funding issues with existing incoming lenders, leaving them unable to complete or meet the time frames required for completion due to liquidity.
All of the 48-hour rescue bridge enquiries received are for transactions where the existing loan process is in the eleventh hour, requiring completion either that day or the following. The pressing timeline for such completions makes Albatross’ award-winning 48-hour product the perfect problem solver, designed to rescue cases in the jaws of completion, particularly when valuations and legals have been carried out by the incoming lender, but where the goalposts are shifted in its final stages.
Of the enquiries received, the bulk comes in three forms.
- Auction Finance where deadlines are vital and destabilised by last-minute concerns from an incoming lender that the borrower cannot afford
- Refurbishment Finance where the incoming lender has become uncomfortable with the figures, works or borrowing experience leaving them looking for an excuse to escape the deal before completion
- Development tranches where borrowers are mid-term and have spent the money, with the existing lender unable to provide further advances due to a lack of ring-fencing or allocation of funds for the ongoing project. This has left countless borrowers in a desperate position and is the area in which the largest increase in enquiries has been seen.
Within this 72% spike in enquiries in Q1, the average deal size was £680,000.
Lewis Casserley, Co-Founder and Principal at Albatross commented, “Whilst we have enjoyed the influx of enquiries and the formation of many new relationships with brokers and borrowers alike, it’s clear that to upkeep the reputation of our industry, the importance of working with lenders you can trust to deliver not only on completion but right through to maturity has never been more salient.”
Albatross’s Q1 lending figures increased 90% YoY as a result of this increase, compared to Q1 of 2023.
How can I apply?
Trust between you and your lender is crucial when borrowing funds to complete your deal. At Albatross, we understand this need and it is this trust that empowers our mission to simplify the process and work sustainably for clients, today and in the future.
We are a team of finance and property specialists focused on supporting your project, providing the start-up capital required to get cracking, and the drawdown capital to keep up the process throughout.
To learn more about Albatross’ 48-hour bridging finance opportunities, speak directly to one of our decision-makers today.
Nils Raber, Associate Director
Telephone: 0208 079 7691
Email: nils@albatrosslending.co.uk