Money

Just 13% of brokers report bridging rise



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Only 13% of brokers have experienced a rise in bridging loan volumes over the last quarter, according to a new survey from MTF.

The bridging lender found that 61% of brokers felt volumes had remained the same, while 26% had not experienced a rise in volume over the last quarter.

Mortgage delays and refurbishments were found to be the main reasons why clients took out a bridging loan (both 29%), followed by development projects (15%).

London was seen as the area with the biggest demand for bridging loans in Q3 (57%), with the South East (29%) and the North West (14%) proving to be the next most popular areas.

MTF’s Q3 broker sentiment survey also found that 63% of the 92 brokers questioned thought market conditions had remained stable in the months after Brexit.

While 25% of brokers had seen improving market conditions since the EU referendum result, 12% of brokers felt it had worsened since Brexit.

Some 63% said they hadn’t seen a decline in the volume of business since Brexit, with 12% indicating that they had seen a decrease.

MTF also found that 64% of brokers agreed with the Bank of England’s decision to cut the base rate to 0.25% to help stimulate the economy.

Looking at the key factors facing the UK property finance sector, 30% of brokers saw changes to landlord tax relief as the biggest issue, followed by Brexit (29%), then stamp duty and the Mortgage Credit Directive (both 14%).

The category ‘other’ was cited as the main issue by 13%.

“The referendum result certainly caused initial market volatility and perhaps some anxiety for brokers and their clients, but the positive news is that for many it is now absolutely business as usual,” said MTF.

“It is an exciting time in the industry at the moment, but the opportunities and challenges ahead will make for an interesting end to a busy year.”

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