Meanwhile, 71% expect their own bridging activity to grow in the next year. Only 26% expect the same amount of bridging business, while those predicting bridging activity was just 3%.
Duncan Kreeger, chairman of West One Loans said: “Brokers think bridging still has a long way to go, and this comes as traditional lending models have stumbled once again in August.”
Those brokers surveyed believe product rates to improve and LTVs to rise.
Kreeger added: “Rates have risen from low levels at the beginning of 2012, but this increase is not expected to become a long-term trend. Equally, any indication that LTVs will rise means that the fall we recorded in the last quarter does not represent the start of any major upheaval.
“What is encouraging is that brokers aren’t forecasting any sort of major correction – either in product rates or credit availability. Such gradual changes are consistent with the increasing stability and maturity of the bridging market. Our early indications for September support this.”
The rate of growth in business lending secured against a residential property accelerated faster than any other part of the market, said West One Loans. Eighty two per cent of brokers said they are seeing increased activity, compared to 54% in February.
Commercial bridging loans, to businesses and secured against commercial property, are a growing area for 93% of brokers.
Kreeger added: “The government is keen to stress the importance of increasing business lending, but can’t put its finger on where the money should come from.
“More bridgers are lending to people who can demonstrate a real business case but are shunned by restrictive practices at high street banks. In May, Lord Young’s report identified peer-to-peer and asset-backed finance as possible sources of business funding. He hit the nail on the head.”
