No 7. Competition is Good
I have heard lots of noise that the Bridging market is over-supplied by lenders and that it is unsustainable but I think it is a little premature to making that call right now. Prior to the crash in 2007 I have this market sized at over £2bn compared to less than £1bn in 2011 so the time to call the market unsustainable was 2006. I think the Bridging and Short Term Lending markets will be a growth story for the next 3-5 years as we see expansion in the Private Rental Sector. Don’t get me wrong, I haven’t got a crystal ball and I am as likely to be wrong as the next man but I think the noise about unsustainable and over-supplied is being peddled by some of the existing lenders who do not like new entrants because it upsets the apple cart. My view is that from a brokers perspective competition amongst lenders is good as it will force all lenders to up their game on service, drive down cost to the consumer and potentially push up fees to the intermediary. Precise Mortgages has already made significant improvements to its service proposition and we hope to continue to innovate both on products and our service proposition.
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