Despite efforts to clean up and make the bridging loan sector simpler to navigate, problems remain that come to bite both borrowers and lenders. Since 2016, first charge and second charge bridging loans have been regulated, unless they are for business purposes. This has not stopped a huge array of litigation since that date, as borrowers try to reinforce their rights and recover monies owed (or said to be owed), and if necessary, to take possession of the underlying security (the house). Also, borrowers claim that the level of charges has been unfair or that the bridging loan itself was not properly set up (it is often claimed that the loan should have been regulated, but it was deemed to be unregulated), and other relevant, vexatious issues.
The problem with bridging loans at their core, is that there are so many moving parts that can go wrong. Bridging loans are exactly that; meant to provide a bridge, a short term solution, but there are so many ingredients that can, and do go wrong.
Over the next few days and weeks I will be writing articles to go through some of the problems that I have encountered with bridging loans. As an expert witness, I have spent much of my time over the past 12 years dealing with such issues, helping both borrowers and lenders, and providing advice, expert reports, and testimony at court.
If you have a current bridging loan problem, do get in touch.