45% of brokers report increase in bridging transactions

45% of brokers report increase in bridging transactions



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Bridging & Commercial’s annual survey of 100 brokers has obtained interesting, and largely positive, results on the prospects of bridging finance during these turbulent times. 

Almost half of the brokers questioned said that the average number of bridging transactions coming through over the past year had increased, while 47% reported that there hadn’t been much change.

 

88% of brokers also stated that the amount of property professionals seeking bridging finance to make auction acquisitions had either increased or stayed the same.  Additionally, 86% of brokers reported either an increase or no change in the amount of requests for bridging finance to fund a buy to let property deal.

 

However, some aspects of bridging loans have changed in this troubled climate. The most common uses of bridging finance have seen a substantial shift since last year: whereas last year chain breaking was the main use of bridging loans, this year they are being used mostly for cash flow solutions. Development funding has also nearly doubled in popularity this year.

 

In regard to bridging loan features, 63% found payment roll up to be most beneficial to clients and extended terms the second most beneficial, with 40% of the vote.

 

It also seems that good service never falters, with 69% saying it was the most important factor when placing business with a bridging lender. Speed, reliability and LTV also rated highly when choosing which bridging lender to do business with.

 

There was also some negative feedback, with 78% of brokers stating that placing bridging cases with a lender had become more difficult over the past year.

 

Overall, when it comes to service, the preferred bridger of brokers is Cheval, winning 34% of the vote. Link Lending came second place with 28% and Blemain in third with 26%, respectively.

 

Analysing these results, it would seem that the bridging sector is largely scraping through the credit constriction unscathed. Apart from some differences in what bridging loans are being used for and some trouble in placing cases, the future of bridging would appear secure.

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