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68% of advisers placed no bridging deals in H1

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  • 27/07/2012
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68% of advisers placed no bridging deals in H1
Most advisers have not completed a bridging deal in the last six months, according to the latest Mortgage Solutions People's Poll.

Short-term lender Dragonfly announced earlier last week that it had agreed 702 bridging loans in principle in the first six months of 2012, worth £463.5m. This figure is up 19% on the same period last year.

However, on the broker side, our poll found bridging remains a niche product with 68% of brokers placing no bridging deals at all during the last six months.

The People’s Poll showed 18% of respondents had completed between one and three deals this year with just 14% saying they had completed more than four bridging loans.

Richard Adams, managing director of Stonebridge Group, said that bridging loans were not suitable in all cases, and that the market needs further regulation.

“While the bridging loan market has grown at a rapid rate over the past 18 months or so, it still only represents a fraction of the overall market.

“Short and medium-term loans are suitable for some clients, but it is unsurprising that brokers are not utilising them that often.

“It is also worth bearing in mind that demand for such products has only increased while many high street lenders have taken a step back from the market.

“Bridging has a place in the market, but I would like to see the sector regulated in line with the rest of the industry and the sooner this occurs, the better.”

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