United Trust Bank’s (UTB) broker sentiment poll revealed that respondents believed lender flexibility was the main reason for the increase in bridging business volumes.
In addition, increased awareness of bridging among customers and reduced interest rates were also considered to be key factors.
Gavin Diamond, commercial director of bridging at UTB (pictured above), said: “There’s no doubt that the bridging market is continuing to grow and our business volumes this year reflect the upbeat assessment of most brokers working in the sector.
“Competitive interest rates and charges and innovations — such as the increased use of AVMs and dual legal representation for bridging, something UTB was one of the first to introduce earlier this year — have also helped to make bridging even more cost effective.
“Whereas a decade ago bridging may have been viewed as an expensive last resort, now it’s often the first choice of funding for many borrowers, particularly for professional investors and developers who value the flexibility of the product and the ability to use lowly geared assets to reduce cash requirements.”
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