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Almost two-thirds of brokers (65%) have noticed an increase in bridging loan volume in Q3 2017, a rise on the 48% who reported growth during Q2 2017, according to recent research.

The latest broker sentiment survey conducted by bridging lender MTF has revealed that bridging finance continues to assist borrowers who are struggling to obtain loans from mainstream lenders which have introduced tougher lending restrictions.

The geographical spread of bridging loan demand has also expanded in the third quarter, and for the first time 9% of the 96 brokers surveyed highlighted an increase in demand in Scotland and Northern Ireland.

The South East witnessed the biggest demand for bridging loans in the UK (48%) for the fourth consecutive quarter, although this represented a decline from the 62% registered in Q2.

The second highest area for demand was London at 25%.

Funding development projects was the most popular reason for obtaining a bridging loan (30%) for the fourth consecutive quarter, followed by business purposes (17%).

Some 69% of brokers claimed the bridging loan process took longer than it did 12 months ago, while 45% said it took less than three weeks to complete such a loan.

Almost a fifth (18%) cited a duration period of just one to two weeks, while 55% said it took in excess of three weeks.

James Anderson, head of new business at MTF, said: “Bridging loans remain an important financial tool for borrowers and demand continues to grow.

“Speed has always been a vital element in bridging finance and it is important that solicitors understand what is required, so that bridging finance requests can be completed as quickly and accurately as possible.

“There are some excellent firms of solicitors to choose from and many bridging loan lenders, like MTF, use a panel of pre-approved firms to help speed up a bridging loan transaction for the applicant.”

Source: Bridging and Commercial

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