United Trust Bank has reported that the majority of brokers it recently surveyed think the bridging sector is most likely to see lender numbers and customer choice increase this year.
59% of brokers responding to the bank’s most recent Broker Sentiment poll believe that the bridging/short term finance sector is most likely to see growth in lender numbers during 2019.
Recent research from the Association of Short-Term Lenders (ASTL) also indicated that three quarters of its members who took part in the survey expected their business volumes to grow in the next six months.
37% of brokers responding to the UTB poll expect to see more development finance lenders emerge over the coming year with similar numbers (36%) predicting growth in the second charge loan sector. Just 17% of brokers expected to see greater lender choice in the prime first charge mortgage space.
Sectors most likely to see growth in lender numbers and more choice for customers over 2019
|Sector||% of brokers responding|
|Bridging / Short Term Finance||59%|
|Second Charge Loans||36%|
|Sub-Prime First Charge Mortgages||22%|
|High LTV FTB Mortgages||17%|
|Prime First Charge Mortgages||16%|
|None of the above||9%|
Gavin Diamond, commercial director of bridging at United Trust Bank, said: “Bridging finance has been a growth success story over the last decade so it’s not surprising that brokers expect to see new lenders joining the sector this year.
“However, the economic climate could be decidedly unsettled for the foreseeable future and brokers and customers are likely to select lenders who can demonstrate experience of challenging markets and certainty of funding.
“The best bridging lenders employ people who are experienced and have worked through various property market cycles. Any new entrants may find it tough to gain the confidence of brokers if their proposition isn’t backed up with real world experience.
“At UTB we’re fortunate to have decades of collective experience within the Bridging team and the Bank. And, although uncertainty still reigns, we’ll continue to develop great products, build strong relationships with brokers and keep finding new ways to make bridging finance cheaper and easier to access for anyone who might benefit from this versatile financial tool.”