Brokers reject Brexit in latest MTF survey

A broker sentiment survey revealed 57% of brokers would be opposed to a Brexit, with 29% saying they would support it. The remaining 14% were unsure which way they would vote.

The majority of brokers (44%) were undecided if property prices would rise if the UK becomes independent, the survey discovered, with 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.

The number of brokers who believed interest rates would rise if the UK becomes independent from Europe stood at 57%.

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.”

Meanwhile, when the 106 broker participants were 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 came 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.

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%.

Aboody said: “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.”