Bridging lender's £337m AIP spike

Bridging lender's £337m AIP spike



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More than 500 Agreements in Principle (AIPs) on loans amounting to £337 million were received in the first four months of 2012 by the short and medium term lender Dragonfly Property Finance.

 

This spike in AIPs, from an already high level, is further evidence of consistent activity by professional property investors and landlords within the increasingly flat residential property market.

 

With property prices under continued pressure and many prospective homeowners unable or unwilling to purchase property, buy-to-let was the single biggest driver of the surge in AIPs.

 

Mark Posniak, Marketing and Operations Director of Dragonfly Property Finance, commented: "With residential property prices falling and high street mortgage criteria tightening quite dramatically, it's no surprise investor demand is rising by the day.

 

“It's been well documented that buy-to-let is booming and these numbers drive home how big the sector has become.”

 

Mark stressed that the high number of AIPs are not purely limited to London either. He explained: “The AIPs are coming from all areas of the country and are on loans of all sizes. Both amateur and professional investors see a major opportunity in the market at present and they are becoming even more active as the market falls. Their view is that the owner-occupier market could be flat for years to come."

 

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