Just 14% of bridging brokers expect lenders to relax credit policies over next 12 months



270_2018-04-09-11-08-58am.gif
Only 14% of bridging finance brokers expect lenders to relax their credit policies over the next 12 months, according to new research.

The broker sentiment survey by United Trust Bank (UTB) found that 58% of such brokers expected lenders’ credit policies to stay broadly the same, while 28% thought that lenders would tighten their policies.

On average, around 57% of brokers in the fields of bridging, development and asset finance expected credit policies to stay largely the same over the next year.

The full results were:
 

Harley Kagan, managing director at United Trust Bank (pictured above), said: “It’s good to see that most brokers believe lenders are already operating with an eye on the future. 

“However, it’s perhaps unsurprising given the level of uncertainty surrounding Brexit, the UK economy and the residential property market, that many brokers feel some lenders will be tightening their purse strings over the next 12 months.” 

Harley said that it had heard from some brokers that lenders who were once happy to consider certain loans were now being far more cautious even with well-established customers. 

“This ambiguity will frustrate brokers, but as long as they’re aware that experienced, ‘through-the-cycle’ lenders like UTB are still very keen to lend, they should be able to find quick and competitive funding solutions for their clients.

“From a broker perspective there are obvious advantages to dealing with a specialist lender which can quickly adapt to changing market conditions and be flexible in applying their credit policy to marginal cases.”

Sign up to our newsletter to receive more news like this story

I accept that by joining the B&C mailing list, I will receive relevant news and promotional material via B&C on behalf of its partners and advertisers. Your data will not be passed on to any third party.
No, thanks, just the news please.

Leave a comment


×