The master broker and packager says changes to the lending market are resulting in brokers seeking specialist support, particularly in bridging and development finance. Development finance cases have risen to 30% of all its enquiries and it expects that figure to rise further given the growing pressure on lenders to improve stress tests and cut back on higher LTV lending.
Donna Wells, Director of First 4 Bridging, said: “In the immediate period post-referendum the market was incredibly quiet as all stakeholders, particularly lenders, took stock of what had just taken place. We saw lending activity tail off and criteria become stricter, however since those initial few weeks we have slowly started to see bridging and development finance lenders move back into the market, with criteria loosening slightly and their appetites returning.”
She added that there has been a summer boost in activity but the changing nature of the market means many brokers feel unable to source and advise in these sectors themselves. “Our growth in enquiries is coming from both new and existing broker clients and we anticipate this will continue giving the fundamentals in the UK housing market, such as continued lack of supply and the delicate funding arrangements that cut across many sectors.”
First 4 Bridging has been established for 15 years and is based in Bracknell.