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Brokers appreciate need to diversify into specialist lending – Interbay

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  • 22/11/2018
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Brokers appreciate need to diversify into specialist lending – Interbay
Research from Interbay Commercial has found mortgage brokers are more likely to look to the bridging market to diversify their offering rather than only addressing customer demand.

 

More than two-thirds (70%) of the 200 brokers surveyed by the lender believed the demand for bridging had risen in the last year with only 8% saying it had fallen.

A similar number (65%) said the key reason they would take on short-term finance clients was the ability to diversify, while 60% said the main driver was the increased demand for bridging cases.

Perhaps unsurprisingly, one of the attractions of moving into bridging loans was the higher fees obtainable, which were welcomed by 65% of respondents.

Brokers were also positive about the growth of the sector with 62% believing it would continue to grow compared to 5% suggesting it would start to shrink.

Rising house prices (42%) and increasing demand from buy-to-let investors (40%) were seen as the main drivers for growth in the sector.

 

More education for brokers

InterBay Commercial head of sales Darrell Walker said with the sluggish housing market brokers needed to be flexible to address their clients’ needs.

“As the demand increases for specialist finance products, brokers should make sure they are informed,” he said.

“This requires more education around the options lenders offer and the speed at which the solution can be secured.

“But most important is the relationship that has been built with the BDM who is best placed to inform brokers on product availability and criteria guidelines as well as offering flexible tailored advice,” he added.

 

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