South East Borrowers Made Most Bridging Loan Requests In Q1
MT Finance Ltd ( mtf) is a specialist in providing bridging finance here in the UK. The business recently carried out a Broker Sentiment Survey relating to bridging lending in the first quarter of 2017 and some of the findings we highlight below. You can visit their website for more information.
Apparently, it was the South East that witnessed the biggest demand for such finance in Q1 of this year – 45%. London was in second place at 30%. The North West and South West were each at10% and Northern Ireland was 5%.
Of the one hundred brokers participating in the survey, 59% of them had seen an increase in the volume of bridging lending in the first quarter of 2017. This is a significant increase when compared with the last quarter of 2016 when 31% of brokers saw a rise.
The major thing that had to be contended with within bridging lending was the competition. Forty five percent of brokers participating in the survey felt that this was the case. Delays were the biggest concern for 30% of brokers and regulation was the major issue for 15% of brokers taking part in the survey.
It was interesting to read that 40% of brokers, when stating what bridging loan product improvements they would like to see, wanted an increase in the LTV criteria provided by lenders. Adverse applicants should receive greater flexibility according to 15% of brokers.
The major thing that someone wanted to arrange a bridging loan for was for a development scheme with 30% of brokers stating this. Twenty per cent of brokers felt that buying an investment property was the main purpose for such finance. Refurbishment was the major reason for 15% of brokers. Business purposes, auction purposes and Other were each the main reason why 10% of brokers felt someone took out a bridging loan. Mortgage delays were felt by 5% of brokers to be the main reason for raising bridging finance.
The main reason for a broker choosing a particular lender was pricing and interest rates according to 40% of brokers taking part in the survey.