UK brokers expect 27% more bridging loans in 2012
UK mortgage brokers expect to be writing 27% more bridging loans in twelve months time as demand from buy to let investors increases, according to research from West One Loans.
That figure is higher still among brokers who specialise in bridging business, who expect the volume of loans they write to increase by 33% in the next year.
According to a poll carried out by West One, only 9% of brokers say they are writing less bridging business than 12 months ago. Some 28% said they are writing a similar number of loans, while 63% of brokers are writing more loans than 12 months ago. Overall, brokers are writing 28% more bridging loans than a year ago, with one in ten saying the volume they have written has more than doubled in the last year.
‘The bridging industry has grown rapidly since 2010. Net lending is up 56%, which makes the mainstream market look turgid by comparison. The rate of growth shows no signs of slowing and 2012 will be a testing year for mainstream lenders,’ said Duncan Kreeger, chairman of West One Loans.
He believes that the Council of Mortgage Lenders has done its best to map out an encouraging year for the mortgage market, but says that the topography looks treacherous. ‘Gross lending will only be a third of what it was in 2007, and investors are shunning banking stocks as they try to avoid the chaos caused by political dithering in Europe. This is pushing up the cost of funding for the mainstream banks. It means borrowers are finding traditional longer term funding harder to come by, which is making bridging finance a more attractive option,’ he explained.
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Great post.. Property investment requires lump amount and so you need to save for years before investing. Otherwise, you need to go for instant loans. Financial institutions provide various kinds of loans including bridging loans, collateral loans etc.
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