The survey – carried out around the time of this year’s General Election – found that while 44% of brokers did not feel the MCD will have much of an effect on bridging loans, 39% did not think they had enough knowledge of the framework to reach a conclusion.
The MCD comes into force in March next year and introduces regulations for mortgage firms in the EU.
Alan Margolis, Head of Bridging at UTB, does not think the changes will have a dramatic impact on loans already regulated by the Financial Conduct Authority but expects other areas to be affected.
He said: “The most significant impact will be on the second charge market which is currently governed by the Consumer Credit Act and the FLA’s Consumer Credit Sourcebook.”
“Here the MCD will fundamentally change how such loans are processed by brokers and lenders alike and 21st March 2016 is not that far away!”
The survey also shows that over two-thirds of brokers in the bridging sector expect to achieve more success over the next 12 months than they did over the previous year.
68% of brokers are predicting they will complete more business in the next year, with a further 26% expecting around the same results as they have had previously.
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