Bridging & Commercial, in conjunction with a leading short term lender, has commissioned a broker survey which has given rise to some very interesting responses from the intermediary community.
Brokers were asked in the B&C survey - carried out in conjunction with bridging lender West One Loans - what they believe to be the biggest problem in bridging currently.
112 brokers were asked: “Which of the following do you believe is the biggest problem in bridging?” and given six options.
Over a third of brokers, 36 per cent, believe the biggest problem in bridging is its negative perception. The second deepest fear, which 23 per cent of brokers listed, was of lenders tightening their criteria. 16 per cent surveyed believe the lack of product ranges is the biggest issue.
Suprisingly, fraud and the fear of new regulation received the least broker picks with 7 per cent respectively.
The full results were as follows:
|
Q. Which of the following do you believe is the biggest problem in bridging? |
|
|
- Fraud |
7% |
|
- Lack of product range |
16% |
|
- Lenders tightening their criteria |
23% |
|
- The fear of new regulation |
7% |
|
- The M25 bubble |
11% |
|
- The negative perception of bridging |
36% |
5 Comments
Anthony Roy
These are still tough times. I have worked for and with many of the best brokers, brokerages, packagers, networks, lenders and now bridging lenders. I even have my own investments in property. The biggest problems today are lack of funding from traditional channels, fraud, and sometimes over protection in terms of regulation.
Dave Jones
Lack of potential exit routes has to be very high on the agenda. Bridging by definition is there to assist pending another event happening that will trigger repayment to the bridger. Whether it be from sale (which needs a lender on the other side), re-finance to longer term, cash flow or whatever other event you can think of. Most repayment sources are fuelled by a longer term lender somewhere along the line and there just aren't enough of them around - only a bridger with a bottomless cash pit can keep lending if he can't recover his positions in order to re-lend.
Paul
Brilliant. Would it be the Manchester Mafia?
JJ
Name and shame Bob, name and shame. At least that way others won't get caught out.
Bob Havenhand
The biggest problem still in bridging isn't the lenders fearing crooked brokers, it's the brokers fear of crooked lenders. A good and very recent example would be a lender taking a client of mine all the way to completion day then letting us know via the solicitor that they hadn't got the funds to lend. This was after the said lender requested legal undertakings, several thousands in survey fees, and months of extremely hard work. This lender, who will hopefully be reading this, will be quaking in their boots and scrolling up and down to see if I've disclosed their name. They should hang their head in shame.