57% of brokers surveyed by bridging lender MTF would like the UK to remain part of the European Union, as opposed to 29% that would support an exit.
Meanwhile, 14% of the 106 brokers polled were unsure which way they would vote.
MTF’s most recent quarterly Broker Sentiment Survey found that 44% were undecided if property prices would rise if the UK becomes independent. There was an equal split of 28% between those who think property prices will rise, and those who consider prices will not be affected by an exit.
57% of brokers believe interest rates will rise if the UK becomes independent from Europe.
In addition, when asked ‘where would you like to see more product enhancements in the bridging finance sector?’ 53% of the brokers surveyed by MTF said they would like to see greater flexibility from lenders on commercial lending.
When it comes to choosing a bridging finance lender for their clients, ultimately speed of completion is the most important to brokers. With 40% citing this as paramount.
Demand for bridging finance remained strong in the first quarter as people continued to buy properties, despite volatility caused by wider macro events including a potential Brexit.
76% of those surveyed said they had experienced a rise in bridging loan volumes over the first quarter. With 39% of brokers revealing the purchase of an investment property was the main reason their client took out a bridging loan in Q1 2016, as property investors needed fast access to funding in order to complete purchases before the changes to stamp duty came into effect.
For the fifth consecutive quarter, the South East saw the biggest demand for bridging loans in the UK at 56%, up from 50% in the fourth quarter of 2015. London saw the second highest demand for bridging loans during Q1 2016, at 20%.
Tomer Aboody, director of MTF, said: “Many buyers wanted to complete on investment assets before the changes to stamp duty came in. They turned to bridging finance, due to the fast and flexible nature of the product, enabling them to take advantage of opportunities on offer, before putting in place a longer term financing solution.
“Due to the speed in which bridging lenders can make decisions and funds can be distributed, bridging finance can offer a practical solution to a variety of situations including auction purchases, renovations and for business purposes. Despite uncertainty in the wider markets, we expect strong demand for bridging loans to continue.
“Ultimately, it will be difficult for both brokers and lenders to prepare for the challenges that would arise from changes to the market brought about a UK exit of the European Union, when so much still remains unclear. For MTF, the key is to remain flexible, proactive and pragmatic, whatever the outcome.”
