Crystal Mortgages has reported a 10% rise in bridging loan applications. It puts this down to the reluctance of major high street banks to approve commercial mortgage applications.
The Birmingham-based commercial broker finds it is currently taking 150 days from application to completion of a prime commercial mortgage, compared to 85 days in 2007.
It says that the delay means an increasing number of people are reverting to bridging loans, which the company is turning round in 15 days. Figures lent this year have rangedfrom £20,000 to £2 million.
Meanwhile Crystal Mortgages’ near-prime commercial product, which is run from the Crystal Commercial Funding (CCF) division, has a mean application to completion time of 85 days.
Roger Dewsbery, senior underwriter at Crystal Commercial Funding, said: “It is a frustrating time for applicants as the major high street banks drag their heels