Only 13% of brokers experience bridging boost

The bridging lender said 61% of brokers questioned experienced flat volumes, while 12% had seen a drop in business since the vote.

Despite this, the majority of the 92 brokers it surveyed said market conditions are stable or improving, at 63% and 25% respectively. Mortgage delays and refurbishment were the main reasons brokers’ clients took out a bridging loan in the third quarter both at 29%, followed by development projects at 15%.

MTF said 64% of brokers agreed with the Bank of England’s decision to cut the Base Rate to 0.25% to help stimulate the economy following the vote to leave the EU.

When it comes to the top issues facing the UK property finance sector, 30% of brokers named changes to landlord tax relief as the top concern, followed closely by Brexit at 29%, then stamp duty and the Mortgage Credit Directive, both at 14%.

London saw the biggest demand for bridging loans in the UK at 57%, followed by the South East. For the first time, 14% of brokers revealed they had experienced most demand for bridging loans in the North West.

Tomer Aboody, director of MTF, said: “The referendum result certainly caused initial market volatility and perhaps some anxiety for brokers and their clients but the positive news is that for many it is now absolutely business as usual.”

He added: “It is an exciting time in the industry at the moment but the opportunities and challenges ahead will make for an interesting end to a busy year.”