Aldermore quits bridging market

Aldermore bank has announced it will stop accepting new applications for bridging loans from 1 September.

In a statement it said changes would apply nationwide but that it would honour all previous lending commitments until the deadline.

A spokeswoman for Aldermore said: “As of 1 September we will no longer accept bridging applications but continue to focus on our core mortgage propositions in residential mortgages, buy-to-let, commercial mortgages and property development.

“We will honour all existing applications up to and including 31 August 2016.”

In April, Aldermore moved to increase its product range, focusing on bridging and property development sectors in Scotland.

Steven McColl, investment partner at Soho Wealth, said: “The way I read the market at the moment, people are focusing on their core strengths. To me I never really thought of Aldermore as one of the top-20 main bridging lenders, so it comes as no surprise to me that they are pulling out of this section of the market. Bridging was probably more of a distraction than a core part of their business.

“I would suggest post-Brexit people are focusing on their core strengths… the market has definitely changed since the referendum and people are seeking to focus on what they are good at.”

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