The latest results from MTF’s broker sentiment survey have revealed that property refurbishment is the most popular use for bridging finance.
Of the 360 brokers who took part in the bridging lender’s survey, 57% said refurbishment was the most popular use for bridging loans over the first quarter of this year, matching the findings in Bridging Trends.
Figures from the survey also showed that 39 per cent of brokers blamed solicitors for delays to their client’s bridging loan cases.
Director of MTF, Tomer Aboody, commented on the results saying: “As rising property prices push down rental returns, property investors are increasingly seeking out assets in need of work so they can buy them at a low price, make renovations and sell them on or rent them out at a decent profit.”
“However, with mainstream lenders implementing tougher restrictions, it has been harder for investors to access funds and more are turning to bridging finance to finance these projects as a result.”
The survey also revealed that 18 per cent of brokers said on average, bridging loan applications take 1-2 weeks to complete and economic adjustments are the main reason for the increase in demand.
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