The research conducted by bridging lender mtf found that none of the broker respondents felt the need for lower rates or further transparency.

Bridging loan volumes rose by almost a third in the first quarter of 2018 as demand for short-term finance remained positive.

Some 30% of the 119 brokers surveyed witnessed a rise in bridging loan volume, with the biggest demand recorded in the South East at 50% (Q4 2017: 47%).

More than one-third of brokers (37%) claimed that competition was a key issue facing the bridging finance sector during the first quarter of 2018.

Almost two-fifths of brokers (39%) said that interest rates and pricing were most important when choosing a bridging lender, while 33% cited flexibility as a key issue, with 26% claiming speed of completion as a major factor.

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Just 2% of brokers surveyed said that an existing relationship with a lender was the most important factor.

Just over a quarter of respondents (27%) said that they wanted greater flexibility on commercial lending, while 26% wanted faster turnaround times.

During the first quarter, the most popular reason for taking out a bridging loan was to fund a development project at 27% (Q4 2017: 19%), followed by the purchase of an investment property (24%) and refurbishment (21%).

James Anderson, head of new business at mtf (pictured above), said that the feedback from brokers pointed to a strong need for specialist lending.

“Bridging finance is increasingly being used as a viable financial tool to provide real-time funding to plug any gap before longer-term finance can be put in place."