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Brokers expect bridging business to boom in 2018

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  • 18/01/2018
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Brokers expect bridging business to boom in 2018
More than half of brokers are confident about business prospects in 2018 and especially upbeat about the outlook for bridging, according to a survey by lender mtf.

 

Sentiment is significantly higher at the start of 2018 compared to the same period last year when just one in three reported confidence in the future.

Macroeconomic uncertainty is the biggest worry for financial services firms this year, followed by the impact of Brexit negotiations.

One in 10 brokers cited the level of market competition as the toughest challenge.

Demand for specialist finance is expected to remain strong, with one in eight preparing for a rise in bridging finance volume in 2018 – a similar number reported a rise last year.

 

Refurbishment demand

Refurbishment was the main reason borrowers took a bridging loan in the last quarter of 2017, followed by property purchases and funding development projects.

And demand for bridging finance was strongest in the South East.

James Anderson, head of new business at mtf, said: “After the challenges faced in 2017, it is encouraging to see that brokers’ confidence is strong as we enter the New Year.

“I’m delighted that brokers see the demand for a growth in bridging finance in 2018 and the reasons are simple.

“Bridging loans provide a real-time solution to the funding gap that has developed as high street lenders come to terms with increased regulation.

“We can continue to expect to see a substantial rise in the demand for bridging finance throughout the rest of the year,” he added.

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